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iPod is ‘digital music’s Windows desktop’

Business 2.0’s Jimmy Guterman has an interesting concept on iPod bundling arrangements: “Since record companies are desperate for new means of distribution, shouldn’t they be looking for access to the iPod rather than just iTunes? It’s a classic bundling arrangement. Consider how software makers have pursued big deals to get on the Windows desktop because they know that preinstalled material gets the user’s attention. Take this idea to the iPod: What would a broadcast network pay a television manufacturer to ensure that the network was the first station anyone saw when turning on a TV? Apple has an opportunity, first of all, to release a series of customized, high-priced iPods. This would bring large fees into Apple’s coffers. The record companies would get a premium, plus outstanding distribution.”

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