Apple Inc. announced the grand opening of its iTunes Store in 56 countries, inter alia, Russia, India and Indonesia. In addition, Russia was chosen to hold a celebration event on the 4th of December. In several countries, including Russia, the Apple Inc.'s iTunes Store will also offer access to movies apart from music.
iTunes Store Opening
The launch of the Apple Inc.'s iTunes Stores in new markets will almost double the total number of countries in which the company's service is offered. Apple Inc. continues to expand and therefore it has decided to enter emerging markets including India and Russia.
On the 3rd of December, reports were released that users located in some of those markets, namely Russia, Turkey and South Africa, were able to buy music and videos from the Apple Inc.'s online store. Yet the company declined information, but at the same time it confirmed that the Russia was to hold a formal celebration of the iTunes team on the 4th of December.
Apple Inc. to open iTunes Store in 56 countries
Even though as many as 56 markets are to get access to the Apple Inc.'s iTunes Music Store, only four of them - Russia, Turkey, India and Indonesia - will also gain access to movie and video services. Apple Inc., however, informed that those services would be available in other markets, yet the company did not disclose any further information.
On the other hand, Apple Inc.'s iTunes Store will not only feature music from top US list, but the online service is tailored to new clientele as it will offer local and international music as well. The company underlined in its announcement: "The iTunes Store features local artists including Elka in Russia, Sezen Aksu in Turkey, AR Rahman in India, and Zahara in South Africa, international artists including The Beatles, Taylor Swift and Coldplay, and world-renowned classical musicians including Lang Lang, Yo Yo Ma and Yuja Wang." Apple Inc.'s customers would be able to choose from approximately 20 million songs, as it was stated by the company.
The Apple Inc.'s decision to enter new markets was driven by the need of expansion. Yet Apple Inc. may expect many challenges, for example in Russia. Russia is said to be a major pirate, according to several international organisations. However analysts underline that Russia might be a profitable market, if Apple Inc. was able to lure Russians to buy legal songs rather than illegal equivalents.
Apple Inc. - Giant Media Company
Apple Inc., Google Inc., Facebook Inc. and Yahoo Inc. are changing the meaning of "media company." They have they own significant media businesses and they are seriously interested in expanding in this area. It is worth mentioning that Apple Inc., however, does not make any content. It is strongly dependent on the media industry's willingness to sell it. Analysts estimate that the company's media income mainly comes from the 30 percent commission which it charges content suppliers for the service.
Therefore it is not surprising that the Apple Inc.'s media business is increasing at the faster pace than any of other entertainment giants, approximately 35 percent annually. Apple Inc. is a new media giant.