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Digital home market belongs to Apple

Content provision war 'already won'

The battle for the digital home isn't taking place. It's already over, and Apple has won.

Piper Jaffray analyst Gene Munster rejects the commonly held belief that companies such as Google, Microsoft and Apple are engaged in a clash of the titans to claim the market, Fortune reports.

Apple has the users, sales and products to already be the default standard for digital music, the report points out. Apple CEO Steve Jobs' deal to sell Disney his other firm, Pixar, is most likely to help Apple deliver a market-leading movie service in future, Munster surmises.

"iTunes will be the software that runs your living room," he claims.

The report looks at the partnerships and obstacles to the evolution of online film services. "The new partnerships are incomplete solutions," it states, but iTunes is already offering these services. Fortune even goes so far as declaring Apple's online media retail service to be "the Windows of digital entertainment".

Apple's success also means that any given body – of artists, labels or advertisers – will want to be on iTunes because everyone else is there.

Munster predicts Disney will add more and more to the service's catalogue, creating a domino effect that will generate the addition of more content from other media makers.

Despite this, Apple's media sales don't massage its profits, at least not directly. The company uses the media sales to boost sales of its own products, such as the iPod and "any other devices Jobs has up his sleeve".

This story first appeared on Macworld.co.uk.

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