Apple's iTunes launches Australian music and video store

By Julian Lee and David Higgins of Sydnay Morning Herald

Apple Computer quietly launched a long-awaited Australian version of its music and video store at 3am today.

The site is up and running at http://www.apple.com.au.

The Australian iTunes Music Store offers more than 1 million songs from major and independent record labels as well as about 1000 music videos.

Only one major record label - Sony BMG - has withheld its music catalogue from the Apple store. That means acts such as Pete Murray, Alex Lloyd, Franz Ferdinand, Rogue Traders and Australian Idol artists Anthony Callea and Shannon Noll will not be available.

Songs are priced at $1.69 each. Most albums cost $16.99 including GST - much cheaper than the retail price of most CDs.

Music videos are offered at $3.39 each.

Users can play songs on up to five personal computers, burn a song to CD an unlimited number of times, burn the same playlist up to seven times and listen to their music on an unlimited number of iPods.

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AdvertisementThe global head of Apple iTunes, Eddie Cue, said in Sydney today that the advent of iTunes would spell the end of the CD in the not too distant future.

"To kids these days, the CD is a bit like the 8-track [an archaic US cassette system] was to me. They don't see music as coming on a CD - they see it coming from this [iTunes], to be played on something like this," he said, pointing to the latest video-capable iPod.

Mr Cue would not be drawn on the impact on the Australian music download market other than to say that it would be good for consumers and for the overall music market.

In the 2½ months since iTunes was launched in Japan, the volume of downloads has rocketed. Prior to launch, Japanese were downloading 400,000 songs a month; four days after launch, Apple recorded 1 million downloads.

The Australian iTunes store is Apple's 21st, giving it 90 per cent coverage of the global music market.

Apple would not comment on plans to sell TV programs on the Australian website. In the past week, the US site has been selling episodes of popular programs such as Lost and Desperate Housewives as soon as they have gone to air.

The Australian site offers short films from cartoon maker Pixar, but TV downloads are not available.

Today's launch marks something of a landmark for Apple. The Australian website has the highest content of independent music to date.

"Most sites we have started off by talking to the big labels but this time we started off with the independents and then went to speak to the big ones," Mr Cue said.

Apple estimates that 30 per cent of music sales in Australia are of local artists.

Mr Cue declined to comment on Sony BMG's decision to boycott iTunes.

"But we know their artists want to get on it because we talk to them about it," he said.

While some Australian record companies might believe that internet music downloads pose a threat to their control over the industry, it may in fact prove to be their saviour by tapping into younger audiences and offering a viable alternative to music piracy, say internet analysts.

Read more at SMH.com.au