Dec 24, 2004 • 1 min read

The year of the iPod

A review of 2004 says download services went mainstream, with Apple's iTunes dominating and passing 200 million tracks sold by year end.

If 2003 was the year of legitimate downloading in 'theory', then 2004 was the year of legitimate downloading in 'practice'. Following that all important kick start by Apple's iTunes in 2003, this year it seemed like everyone was launching a download platform. Apple, and its nearest rival Napster, slowly expanded their operations globally, and in doing so reached the UK. Meanwhile Sony launched its Connect service, hoping to capitalise on mainstream music fans' existing loyalty to its Walkman portable music players.

Numerous other media, retail and ISP companies launched their own digital music offers, many utilising the back end systems developed by third party suppliers OD2 or Loudeye, who confirmed their dominance in that space by merging midway through the year.

With download charts established and talk of the MP3 replacing the CD single now seeming actually quite viable - throughout it all Apple, traditionally the commercial underdog, dominated the new digital music market. As the year ended Apple's download platform iTunes sold its 200 millionth track, iPod was by far the biggest digital music brand, research in the States indicated music fans preferred to buy tracks from Apple rather than their cost-cutting rivals and the entire Apple empire was experiencing real growth as a result of its success in music.

That said, some question if Apple will maintain its dominance in the digital music space once the whole industry goes mainstream - Apple always appealing more to the early adopter than the everyday consumer. Certainly Sony, Microsoft and Real Networks, all expected to aggressively market their respective music propositions in 2005, won't let Apple maintain their dominant position without a good fight first.

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