Now that the iTunes Wi-Fi Music Store is available on the iPhone, will it impact the wireless carriers who also sell music over-the-air? In the short term, probably not. In the long term, watch out.
At the moment, Apple’s iPhone has a relatively small install base — it was released at the end of June. Apple also delivered at the start of September its new high-end iPod, the Touch, which is essentially an iPhone without the phone. Like the iPhone the Touch uses Wi-Fi and can access the iTunes Wi-Fi Music Store.
Mobile carriers, on the other hand, reach more consumers because their networks can handle many more phones from various manufacturers — Sony Ericsson, LG, Helio, Samsung, Motorola, Nokia.
But in the future, as Apple’s iPhone and iPod Touch user base grows, the carriers could be in trouble if for two reasons — the shopping and playback experiences. Using the iTunes Wi-Fi Music Store to purchase music is incredibly simple, playing it on the iPhone or iPod Touch is quite satisfying, whereas buying music from the carriers and playing it on small phones can be cumbersome and unpleasant, depending on the device.
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