by Jack McCarthy

Apple iTunes success paves way for videos

news
Jul 18, 20052 mins

The news that Apple Computer sold its 500 millionth song through its iTunes music store fueled speculation that the company has plans to add video features to iTunes and its iPod music players.

Always stylish, Apple gave the purchaser of the half-billionth iTune 10 iPods, a gift card for 10,000 songs, and an all-expense-paid trip for four to attend a Coldplay concert as well as back stage passes to meet the band.

Apple now dominates the online music market, and last week reported third quarter that were the best quarter in the company’s history.

Net income was $320 million, up a whopping 425 percent from the year-ago period. This resulted in earnings per share of $0.37, six cents better than analyst estimates of $0.31 earnings per share.

“We are delighted to report Apple’s best quarter ever in both revenue and earnings,” Steve Jobs, Apple co-founder and chief executive officer, said last week.

Attention is now focused on reports that the company is in talks with music companies to produce music videos.

“The vPod is coming,” said Rob Enderle, president of the Enderle Goroup. “They’ve been negotiating with the record industry to show music videos,” Enderle said. “Steve (Jobs) is not convinced people will want just videos but they will want videos with music.

“iTunes would be the central (videos-music) depository,” Endele added. “The target price will be sub-$500.”