Multi-sided platforMs patterns 85 Apple introduced the iPod in 2001 as a stand- alone product. Users could copy their CDs and download music from the Internet onto the device. The iPod represented a technology plat- form for storing music from various sources. At this point, though, Apple was not exploiting the platform aspect of the iPod in its business model. In 2003 Apple introduced the iTunes Music Store, which was closely integrated with the iPod. The store allowed users to buy and down- load digital music in an extremely convenient way. The store was Apple’s fi rst attempt at exploiting platform effects. iTunes essentially connected “music rightsholders” directly with buyers. This strategy catapulted Apple to its position today as the world’s largest online music retailer. In 2008 Apple consolidated its platform strat- egy by launching its App Store for the highly popular iPhone. The App Store allows users to browse, buy, and download applications directly from the iTunes Store and install them on their iPhones. Application developers must channel sales of all applications through the App Store, with Apple collecting a 30 percent royalty on each application sold. Switch to multi-sided platform business model Consolidation of platform business model 2001 ipod 2003 ipod & iTunes 2008 iphone & appstore bmgen_final.indd 85 6/15/10 5:36 PM