Apple's new wifi downloading at Starbucks is an interesting business model. First, the cost of setting up the service seems minimal. The infrastructure is already in place at each Starbucks via their wifi. All Apple has to supply is the software. If this service ends up a dud, all that Starbucks will suffer are the labor charges associated handling the service.
It becomes even more interesting if Apple expands this technology to other venues. Any place that has a high iPod-carrying customer base should be interested in this technology. Any club or concert venue could sell concert goers a recording from the soundboard or even a copy the band's album. New bands could offer a free single (the first one is always free) or their 5 song ep for whatever they want to charge. Bands would have the advantage of the spontaneous sale, the I-'ve-gotta-have-it-now buying fever that strikes ever y decent American. Most bands already sell CDs at their shows, but those CDs require the band's own capital to purchase before they sell, and can be a loss even they go unsold at the end of a tour.
Bars with jukeboxes could add this feature.
This could also fit into Mark Cuban's idea of going to see a movie and bringing home the DVD. Why not download the DVD over wifi as you sip a cup of joe and talk about the film in the Cineplex's Starbucks cafe?
In general, wifi gadgets with attached memory open up lots of new possibilities. It will be up to the seller to figure out ways to spur sales at their stores. This technology doesn't have to be limited to Apple, but it looks like they've got a foot in the door with their wifi iPods.
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