Macenstein

Posted by Dr. Macenstein

Apple’s iTunes software has been downloaded by both Mac and PC users close to 500 million times. Starting last January, Apple added a new feature to the iTunes software called the iTunes MiniStore. The MiniStore is one of the first things every iTunes user sees when they first launch the software. Thanks to privacy issues, a small screen now pops up at the bottom of iTunes and you can choose whether or not you want the MiniStore to be visible.

I recently opened iTunes for the first time on my new Mac Pro, and I was somewhat surprised to see that the iTunes MiniStore is still using the same artist, Gorillaz, that they were over 17 months ago to demonstrate the MiniStore’s features.

This got me to wondering. What is that kind of publicity worth? Figuring in the past 17 months as many as 100 million or more people have likely seen that “ad” for the Gorillaz Feel Good Inc. album, and catalog, that’s the kind of publicity that many artists would kill for. Have the Gorillaz (or their record company) paid Apple to keep their album there? Probably not. But should they? You bet. While this is most likely just laziness on the part of Apple in keeping the MiniStore up-to-date, I think Apple is missing a potential revenue opportunity here.

I have no idea what advertising rates are, but for example, say Apple charged a record company 3¢ for every iTunes download, knowing each download meant at least 1 media impression of their artist. That’s $3 million Apple missed out on this year alone. Sure, that’s chump change to a big company like Apple, but then again, $3 million might buy all their employees an iPhone for Christmas. Plus, why not market that space? The Gorillaz aren’t any better at showcasing the MiniStore’s features than any other artist.

I know that we should all applaud Apple for not being all about the money in this case, however, the iTunes store actually IS all about the money. Plus, the more money Apple makes, the more times we can read that Michael Dell quote about how Apple should close up shop and “and give the money back to the shareholders” when analysts compare Apple and Dell’s market caps, and that always makes me smile.