Unlimited Selection and Instant Gratification

by Ava Turner and Lynne Walenjus

[Directions from Instructor: Please read the blog post below. If you did not write this post, you must respond at least once directly to the post, and then respond at least once to someone else's response. If you did write the post, you need only respond at least once to the initial responses from your peers.]

The Initial iPod and iTunes

Was the failure of the physical music industry worth a new generation of online music downloads?

Apple had a rough start before Steve Jobs came back to save the day. Apple established its trademark as beautifully crafted computers that were innovative and individualized devices. Jobs wanted the iMac to be the central machine to a variety of other Apple products to create a digital hub. Jobs knew that music download was the key connector of the digital hub, but needed a way to unite this system. After purchasing Toshiba’s idea for a 1.8 inch 5 gigabyte hard drive, Jobs developed the iPod: a stainless steel and white portable MP3 device.


The original iPod was unveiled on October 23, 2001 and was initially

only available to iMac owners.

The iPod came with moon gray headphones which 

became a new, modern fashion statement.


To popularize the iPod, Jobs needed to develop his music file download service: the iTunes Store. He selfishly convinced record agencies to allow him to sell individual songs on iTunes for $.99 on behalf of the consumer. Jobs’ celebrity status and disparity of the music industry lead to the agreement with record companies, giving them ⅔ of every music sale, and eventually the unveiling of the iTunes Store. This agreement led to the further decline of the physical music industry due to the decreased album revenue.

The expansion of the iTunes Store and the iPod to Windows users gave Apple dominance over the digital music world. Jobs successfully gave the consumers what they demanded: unlimited and instant music selection, thus instant gratification. The iPod and iTunes Store proved that computers were no longer just computers.

What other digital music products furthered the decline of the physical music industry? How did the iTunes Store turn computers into more than just computers?

Netflix’s Claim to Fame

Reed Hastings, CEO of Netflix, once received a $40 late fee for not returning a rented movie back on time. What he did not know was that this would lead him to create the world’s biggest video enterprise.

Hastings realized that consumers were fed up with late fees and the hassle of returning DVDs on time, then waiting to rent another one. What they wanted was a service that allowed them to have DVD’s on demand whenever they wanted to watch movies at their leisure, and not worry about a return date. Netflix was originally a hybrid service: customers could rent a movie for $4 along with a $2 shipping fee, or buy a movie to own. However, in 1998, the percentage of households that owned DVD players started to increase, and Hastings decided to make the switch from VHS to DVDs, giving Netflix an edge over competitors. Blockbuster, Hollywood Video, and Movie Gallery did not embrace the DVD format, because the switch from VHS to Laser Disk was too expensive. Blockbuster even rejected Nextflix’s offer to sell itself for $50 million.


The original Netflix logo after its initial release. 


DVD format led to the Marquee Plan, where subscribers paid $15.95 per month to rent 4 movies, with no other fees. The “no late fees or due dates” appealed to customers and Netflix’s rental volume increased by 300% in 3 months. Netflix carried unlimited titles, while Blockbuster had limited inventory, further separating them from the competition.

Netflix’s consumer base continued to increase after the release of the “queue”: a list of recommended movies tailored to the interests of each customer, allowing for a more personalized experience. Blockbuster’s members continued to decrease by 50% by 2010 as Netflix was attracting more members. Blockbuster was forced to file for bankruptcy. Netflix won the battle for online video rental because it understood how customer’s expectations were changing and ultimately, how to satisfy them: unlimited selection and instant gratification.

If we didn’t have Netflix today, how else do you think people would watch movies and TV shows, and what would everyone be doing during quarantine?

Comments

  1. Through the iTunes store I think that people saw the potential of portable personal devices and it out Apple on the map then more than just a computer company, they were the future of personal technology. In regards to Netflix, I think without it we would be ordering DVDs during this outbreak or another company would have come along and been the Netflix with a different name.

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    1. How much later do you think an idea like Netflix would've came about if another company had thought of it?

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    2. I think it would have taken quite some time for a company to surface since before Netflix retail rentals were extremely popular and there just wasn't another method available.

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    3. yeah, i agree i think that people always come up with ideas in the absence of others so there would totally be another company

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  2. The iTunes store helped turn computers into a full on stop shop of multi-media entertainment for the average consumer. I believe this proved how selling music online could be very lucrative and paved the way for more retailers to follow suit.

    I think that Netflix was revolutionary for its time, but now a days, its not as unique. Other services such as Hulu and Disney plus could fill the void left by Netflix if it wasn't around today. There's also good ole' cable television.

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    1. I definitely agree that iTunes was revolutionary in the sense that it made digital purchasing of music a money-making business. If iTunes hadn't come around could you have seen any other company doing this?

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    2. I believe that really any company could have done this at the time such as Microsoft or really any other big company, but because apple got the jump on it, it gave them a head start in which nobody could really catch up with them.

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  3. I think Jobs's idea to create the iTunes store was one of the smartest decisions Apple made at the time because having access to an unlimited amount of music at your fingertips completely changed the way people listened to music. Although vinyls and CDs are becoming more popular for a "vintage" feel, the majority of music is streamed online through apps like Apple Music, Spotify, and Pandora and I personally do not know what I would do without them. The iTunes store truly did turn computers into more than just that because computers were now a big part of daily entertainment. Same thing goes for Netflix - there is an endless stream of movies and TV shows at your leisure without watching commercials or waiting for your favorite show to come on cable or hoping your DVR isn't full or paying late fees on Blockbuster movies.

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    1. Computers definitely became more than just computers because of music! I agree with your point that this was the beginning of the transformation of computers into a big part of daily entertainment.

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    2. I also believe that the iTunes decision may have been the start of turning apple into the super giant it is today. It revolutionized the computer landscape and propelled them into further success.

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    3. I agree that iTunes was revolutionary for the technology industry as a whole in that it completely changed how people thought about how you listened to music, and, by extension, computers as a whole

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    4. How old were you when iTunes was released? Do you remember a world before that service?

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    5. I was a month old when iTunes was released. I honestly don't remember a world before that service. I remember getting my first iPod (it was purple lol) and being so excited to download Black Eyed Peas and Taylor Swift songs onto it.

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    6. Wow, a month old. I really have to remember that you all really are a new generation! Didn't occur to me that you've lived your entire lives with digital music.

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    7. I'm sure iTunes was released at this point, but I remember getting a pink MP3 player and I would replay the same few songs over and over again because I didn't know how to get any more songs on it. Then I got an iPod nano and it was the best thing ever, but I had all of my parent's music on it. Now with Apple music, my music library finally feels like my own.

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    8. Yeah, it's strange reading about things that we were witnessing at a very young age...reading about Netflix brought back lots of memories of my mom letting me add movies to the Netflix queue. I would put barbie movies at the top of the queue, and then act surprised when Barbie of Swan Lake showed up instead of Water for Elephants

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  4. I think that the world would be a lot more boring without netflix. I think that Blockbuster might still be around, but someone would have come up with the idea eventually and created something like it. During the quarantine, I think most people would be both positively and negatively affected. Positively because they would be forced into doing more physical projets, puzzles and drawing and home-improvement. Negatively because it would just suck to live in a world without netflix.

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    1. I agree, Netflix definitely makes life easier. Blockbuster would maybe still be around, but out of date, and their users and revenue would still decline. In some ways, maybe our society would be better, being more active. But yeah it would suck without Netflix.

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    2. I hadn't thought about Blockbuster specifically, but it's true that they'd probably exist still.

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    3. If we assume that no company would have come up with this idea, do you guys thing services that stream tv, like Hulu, would be around?

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    4. Personally, I believe that a similar idea would eventually come up anyway. But if that had not happened, the whole entertainment industry would be very different than it is today.

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    5. It would be interesting if Netflix was not around. Timing was so crucial. Even if something like Netflix was created a few years later, maybe Blockbusters would buy it out because DVDs were proven to be a common household item.

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  5. Netflix is precursor to everything we know in terms of internet movies. But that isn't to say that someone else would've come up with the same, or similar idea and gotten to exactly where we are today. Maybe we'd be a few years behind, but human beings aren't all that original. We eventually come to the same conclusion.

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    1. This is hayden! I was logged out from mine.

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    2. I love your comment about our lack of originality! I also think that Netflix would exist in some form at some time no matter what.

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    3. I didn't even think about that we could have still ended up with the same platforms if it weren't for Netflix. It is just interesting to think that maybe internet movies would not have been invented without Netflix and the world would still be going to Blockbuster for a DVD. Things would be so different and hopefully even without Netflix, we would still be able to have the same sort of ease to binge watch movies at our fingertips.

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    4. I agree about unoriginality.....one service in particular stands out to me. I think Disney would have made a streaming service no matter what.

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    5. Definitely! When in doubt: It's capitalism, baby! Disney would have come to it one way or another. Another way to make money on people who love your movies and need to entertain their kids perpetually? Disney's right there.

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    6. So true about Disney! Surprised they took so long really.

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  6. I think that more digital music products like Spotify and Pandora really changed the dynamic of the music industry when they were created. The iTunes Store made people realize that computers didn't have to be only for computing, searching, or buying, and streaming music was a thing everybody was looking forward to.

    Without Netflix, I believe that the movie industry would also be highly changed. I truly believe less people would buy movies in general, decreasing the size of the industry and changing life as we know it. Without Netflix, there are still many other technologies available to people nowadays to entertain themselves during times like these.

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  7. If we didn't have Netflix today, we would watch movies and TV shows similarly to how we used to prior to Netflix. This would mean more DVDs and watching live television. I know that my family has had movie nights mostly every night during quarantine, and we own few physical copies of these movies. So I'm not sure what people would be doing without services like Netflix during this time, but I would assume we would find ways to go outside and play board games.

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    1. I agree. I think we would have found something to do without Netflix. We could have watched DVDs or Cable TV. While Netflix has definitely made it easier to watch movies and television, there would have been other activities.

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  8. i think that if we didn't have netflix today we might still have blockbuster, thats kind of a stretch but they might still be around in some form, or something else will have taken their place so i dont think our quarantine would be much different honestly. at the very least americans would have to rely on their home movie collections instead of a streaming service. or they would be doing much more productive things all together

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  9. I think digital music services like Spotify also had an impact on the music industry. Not only do you not have to buy entire albums, but you don't necessarily have to pay for anything...as long as you don't rip your hair out listening to the ads. If we didn't have Netflix, I think we'd be doing a lot less binging. But I think people would still watch movies. My family has a fairly large collection of DVDs, and there's always live television! If you don't like commercials, you could just record things

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    1. Definitely. I agree that Spotify had made a crazy impact by allowing people to connect through music and get it for free. We also have a lot of DVDs that I am sure we would be watching without Netflix.

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  10. Make sure you have an initial comment on both posts today and at least one comment on another student's comment. Not everyone has commented on both posts yet.

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  11. I think the failure of the physical music industry was worth the new digital industry because it made the sharing and connection of music more accessible. It also made music extremely portable and less expensive for the consumer.
    The MP3s furthered the decline of the physical music industry because it made it easier and cheaper to listen to music. The iPod was then developed, which made it even easier. They made computers into small and portable. To use the Internet, you would no longer have to be at home on a computer.
    Without Netflix, I think we'd be watching a lot of DVDs and listening to a lot of music. I think people would be doing things like what we did in Hurricane Sandy, such as playing board games, reading, and watching DVDs. We would probably be more bored, but we would use other sources of entertainment.

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  12. I think the failure of the physical music industry was worth a new generation of online music downloads. Although, I would not necessarily call it a failure. I think that naturally as the online music demand increased, physical music was decline. Digital music, however, would ultimately leave a large impact on users because it was unlimited selection and instant gratification, which was becoming their new demand. MP3s and iPods were the largest products that affected the physical music industry, with their portability and convenience. iTunes turned computers into something more by offering entertainment and more individualization. If we did not have Netflix today, I think people would either surf through channels on tv, and if that bored them they would rely on other forms of entertainment like games going outside.

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  13. Good job team! I'll see you on Classroom tomorrow :)

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