How they do it: With the iPod and the iTunes store, Apple digitized the music industry. Apple enabled users to download a greater choice of music than any physical store can have, anywhere and anytime. Having the music in electronic format eliminated cost of one additional copy of a song completely.
How they do it: With the establishment of its music streaming service Apple Music, Apple enables customers to stream an unlimited amount of music for a fixed monthly fee.
Leverage Customer Data
How they do it: Customer data in the iTunes store and in Apple Music is used to give the listeners individualized recommendations of what other music might be interesting to them.
How they do it: Apple offers its customers a wide variety of music in its iTunes store. Revenue with individual songs might be small but through the sheer mass of songs users download it generates a substantial amount of revenue.
Razor And Blade
How they do it: Although the iPod is not given away for free, Apple uses it as a platform to access to much more revenue opportunities through apps and other services beyond the pure hardware revenue.
How they do it: The revenue from iTunes purchases goes partly to Apple and partly to the rights-owner.
How they do it: The Apple iPod in combination with iTunes offers a full solution for the customer’s music consumption, ranging from the physical device to listen to music portably to the actual content to be put on the iPod.
How they do it: Apple Music, which allows the customer to stream an unlimited amount of music for a fixed fee evrey month is based on a subscription model.
How they do it: The iTunes functions as a two-sided market with artists, producers or other rights-owners on the one side and customers / users on the other side.