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The Honolulu Advertiser
Posted on: Friday, August 5, 2005

iTunes service launches in Japan with 1M songs

By Yuri Kageyama
Associated Press

Apple's launch of its iTunes Music Store in Japan yesterday could change the music business in the nation, where music downloaders are still used to paying more money for a limited lineup of tunes.

Katsumi Kasahara | Associated Press

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TOKYO — Apple Computer Inc. launched its music download service, the iTunes Music Store, in Japan yesterday with 1 million songs, determined to expand on its popular iPod business on the home turf of rival Sony Corp.

"We're super excited about this," Apple CEO Steve Jobs said in Tokyo as he announced the launching of the iTunes service. "The future looks very, very bright for the iPod in Japan."

The online store also could change the local music business, where people who download music are still used to paying more money for a limited lineup of tunes from sites for PCs and mobile phones that cost about 200 yen, or $1.80, a tune or charge monthly fees.

Jobs said iTunes will have 1 million songs in Japan, by both Japanese and international artists, with most costing 150 yen, or $1.35 each. Only 10 percent of the songs cost 200 yen, he said.

That's slightly more than the 99 cents charged in the U.S. version of the service — but the crowd at the Tokyo hall cheered when the price was announced.

Jobs made no secret of iPod's challenge to Sony, telling the crowd that the iPod was outselling Sony's latest star product, the PlayStation Portable. Sony sold about 2 million PSPs in the last quarter but Apple shipped more than 6 million iPods during that same time.

Offerings from Japanese artists on Sony labels aren't available on iTunes, a Sony Music Entertainment spokeswoman said.

"We are in talks with Apple, but we have not reached an agreement at this time," she said.

Jobs said he was eager to repeat the online store's big success in the United States, where it accounts for 82 percent of all legally downloaded music.

Apple has sold 21.8 million iPods worldwide since it went on sale in October 2001, and more than 500 million songs through its iTunes Music Store.

The iPod dominates the global digital-music-player market, controlling more than 70 percent share, but that falls to 36 percent in Japan, where Sony controls 22 percent market share.

But the iPod has been a big hit in Japan, growing into a fashion statement.

Since the iPod caught on, Sony and others also have introduced portable players for MP3 music files, including those with hard drives like the iPod.

Los Angeles-based Napster Inc. is planning for next year a Japan version of its music download store in a joint venture with Tower Records Japan.