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Today, digital downloads remain the most popular way of paying for music, but streaming services are quickly closing in. In the US, streamed music accounted for 27 percent of music sales in the first half of the year, up from just 3 percent in 2007 and 15 percent in 2012, according to the Recording Industry Association of America. Streaming sales have nearly surpassed sales from physical music -- mostly CDs -- which stand at 28 percent. Digital downloads made up the biggest chunk at 41 percent of total revenue, but both downloads and physical sales are dwindling. Apple in August paid $3 billion for Beats to gain a foothold in streaming music.
The suit addresses iPods sold from September 12, 2006, to March 31, 2009, That includes the fifth and sixth generation of the iPod Classic; the iPod U2 Special Edition; the first, second, third and fourth generations of the iPod Nano; the first, second and big w waterproof iphone case third generation iPod Shuffles; and the first and second generations of the iPod Touch, The crux of the plaintiffs' case against Apple revolves around the iTunes software updates Apple released that prevent other music from working with its devices, The plaintiffs allege that iTunes 7.0 and 7.4 -- released in September 2006 and September 2007, respectively -- were not genuine product improvements but simply were made to bar other music vendors from Apple's products, Because Apple's system had not yet been hacked, there was no reason to update the security system, they say..
Along with security features, though, Apple will argue that iTunes 7.0 and 7.4 were legitimate, needed updates that improved its products. When Apple released iTunes 7.0 in September 2006, it called the update "the most significant enhancement to the world's most popular music jukebox and online music and video store since it debuted in 2001." The biggest new feature was the inclusion of digital movie purchases available the same time as the DVD versions hit the market. At launch, iTunes included 75 films from Walt Disney Pictures, Pixar, Touchstone Pictures and Miramax Films such as "Toy Story" and "Shakespeare in Love.""Here we go again!" Job said in a press release at the time. "First music, then TV shows, and now movies."Other additions included an iTunes video playback window with on-screen controls; cover flow views of music, TV shows and movies; expanded parental controls; gapless playback, which eliminated pauses from one song to another; and an updated user interface. Apple also introduced popular video games for the fifth-generation iPods, including Tetris and Mahjong.
Also included in the suit is iTunes 7.4, which was a more minor update that hit the market in September 2007, The software included the ability to make custom ringtones and use closed captioning while watching videos, At the time Apple introduced iTunes 7.4, it also unveiled the "iTunes WiFi Music Store" to let consumers browse, search, preview, purchase and download songs and albums over a Wi-Fi network directly onto their iPod Touch or iPhone, The trial roster features some of Apple's top big w waterproof iphone case executives, including marketing chief Phil Schiller and iTunes chief Eddy Cue, Both will talk about competition, iTunes and other topics..
But the star witness likely will be former Apple CEO Jobs. Attorneys took his deposition on April 12, 2011, six months before he died. The court will see about 20 minutes of testimony related to iTunes competitors, Apple's treatment of RealNetworks and how the major record labels wanted interoperability. None of the testimony relates to iTunes 7.0 or 7.4 as neither was relevant to the case at the time. Other Apple executives being called to testify include Jeff Robbin, current vice president of iTunes. At the time of his deposition in 2010, Robbin served as vice president of iTunes and Apple TV. He will testify about iTunes competition, development of FairPlay, improvements and innovations related to iTunes and FairPlay, the response to programs that circumvented FairPlay and security risks, responses to RealNetworks' Harmony, and other related topics.
Also on the list is Augustin Farrugia, Apple senior director of Internet services security, At the time of his 2010 deposition, Farrugia served as senior director of DRM technologies, and he led the redesign of Apple's FairPlay architecture, He will testify about FairPlay design and implementation, FairPlay redesign efforts from 2005 to 2007, anticipation of and response to hacks and vulnerabilities, and other related topics, Much of the testimony will come from expert witnesses, The plaintiffs plan to call David Martin, a computer software expert with a PhD in computer science, Martin taught for several years after receiving his PhD in 1999 but hasn't worked at a school since big w waterproof iphone case 2007, He has testified for 13 trials since 2000 and has served as a consultant in 17 other instances, according to his resume filed with the court, He will testify that iTunes 7.0 and 7.4 were not legitimate, needed updates, and that the updates to iTunes caused iPods syncing with RealNetworks' music to become unusable..
Other experts being called by the plaintiffs include Roger G. Noll, a professor emeritus of economics at Stanford University, and Jeffrey Wooldridge, a professor of economics at Michigan State University. Noll will support the plaintiffs' case for liability and damages, while Wooldridge will serve as a rebuttal witness. Apple's experts include Robert Topel and Kevin Murphy, economist at the University of Chicago, and John P.J. Kelly, CEO of consultancy Kelly Technology Group. Topel will testify about the antitrust factors and the amount of damages (if any) that are due, as well as give rebuttal testimony to Noll's statements. Murphy will discuss competition and factors in the market and provide a rebuttal to Noll, and Kelly will talk about improvements made to FairPlay and iTunes and why they were needed, among other topics.
Other potential witnesses include the plaintiffs and other Apple executives, Not too much, DRM and iPods are largely issues of the past, But if you're one of the people who bought an iPod during the covered time frame, you could get some money if the plaintiffs are successful, Not too much, The company has already removed DRM from music in the big w waterproof iphone case iTunes store, and music downloads from other vendors work on Apple's devices, Even if Apple loses, $350 million is a tiny fraction of the company's annual revenue, In fiscal 2014, Apple generated $182.8 billion in sales, which is about $500 million a day -- or $20.9 million an hour..