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Tuesday 23rd August 2005
Billboard Magazine warns Apple of tolling bell 11:05AM, Tuesday 23rd August 2005
The US record industry bible is warning Apple to enjoy its dominance of digital music while it lasts, because it won't.

Billboard Magazine believes that Apple's 'reign' will last at the most another 12 to 18 months because the iPod and iTunes alone cannot support the extent by which the downloads market is expected to grow.

Why this is the case it does not make entirely clear, though the history of consumer electronics would suggest that the iPod cannot maintain an 80 per cent market share for ever, but it is right about what Apple's rivals must do. No matter what kind of online music store you have, whether it's a la carte or subscription-based, even if it is 20p cheaper than the rest, market share will elude you until you can come up with a
 
 
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device that matches the iPod and hardware software integration comparable to the iPod-iTunes model.

Until this happens - and you can be sure that the likes of Creative, Microsoft, Sony and Samsung are working hard towards that objective - the record industry will continue to apply behind-the-scenes pressure on Apple to allow more flexibility in iTunes pricing and crucially to open up the iPod to downloads from rival operators.

Neither, says Billboard, is likely to happen.

'It's a monologue with them,' one label executive told the magazine. 'They pretty much say, "This is what we want to do," and if you disagree with them you're an idiot. It's like dealing with a cult.'

At the moment the record labels arguably need Apple more than it needs them. Without Apple there would be a much smaller digital music market, certainly not one capable of shifting half a billion songs and more. And Apple will not cede its dominance lightly.

'No one assumes Apple will go without a fight,' Billboard concludes.

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