T3 Blog Prompt #6

As of right now, Apple has only allowed the App Store in Singapore, but not the full iTunes Music Store, which means that iPhone owners can buy apps but not music, movies, or books through Apple. Their reason is rampant piracy throughout Asia. What are the negative consequences of Apple's decision? Write in ABC/PEEL format.

By not allowing the full iTunes Music Store in Asia, it would create many disadvantages. Firstly, Apple would earn lesser money. Secondly, it would cause more piracy to occur. However, there would also be advantages. The advantage is that Apple would be able to protect their music, movies and books from piracy.

Firstly, Apple would earn lesser money. Apple would definitely earn less profit because they do not allow people to buy music, movies or books. Apple also reported a near tripling of iPad sales to 9.25 million, up from 3.3 million a year ago. Geographically, sales were fueled by Asia Pacific, of which China makes up the biggest portion, with revenues there more than doubling to $6.3 billion in the third quarter. This shows that Asia Pacific, especially China, contributed much to Apple's profits through iPad, hence by not allowing the full iTunes Music Store in Asia, Apple would earn lesser money.

Secondly, it would cause more piracy to occur. By not allowing the full iTunes Music Store in Asia, Apple is indirectly encouraging piracy because iPod owners would not be able to buy songs online even if they wanted to. Thus, they would have to turn to other sources to get their songs, leading to more piracy. Hence, by not allowing the full iTunes Music Store in Asia, it would cause more piracy to occur.

However, by not allowing the full iTunes Music Store in Asia, Apple would be able to protect their musics, movies and books from piracy. Last year, the theft of digital content cost the entertainment sector at least US$1.7 billion in the Asia Pacific region alone. That's estimated to be about a third of the global figure. This shows that piracy is very serious in Asia Pacific region. Hence if the full iTunes Music Store is allowed in Asia, there is a high chance that Apple's musics, movies and books would be subjected to piracy. Thus, in order to protect their musics, movies and books from piracy, Apple had to not allow the full iTunes Music Store to be in Asia.

In conclusion, Apple's decision to not allow the full iTunes Music Store in Asia created disadvantages like earning less money and cause more piracy to occur. However, the advantage would be that Apple's musics, movies and books would be protected from piracy.