MySpace May Change Apple's Tune

Shares of Apple closed Thursday up $4.12, or 2.8%, to $151.61.

MySpace may have some chips stacked in its favor, but an assault on Apple won't be easy. Apple controls both the hardware and the software side of the business, integrating them tightly, and making it difficult for competitors to break in.

"The way the iTunes stores work right now and as long as the iPod is the most successful music device out there, Apple won't feel the pressure," says Michael Gartenberg, vice president and research director of Jupiter Research.

Meanwhile, Apple has also gained strength despite Amazon.com's attempts, points out Gartenberg. "Amazon has done a great job of creating a store and offering DRM-free music, but that hasn't changed the digital download market yet," he says. "So we will have to see whether MySpace Music will be any different."

MySpace's young audience also could work against it. "MySpace has a lot of teens, a demographic that has not shown interest in spending money on music," says Leigh.

Meanwhile, Apple may be devising its own ways to fight back. Last month, reports suggested Apple could be devising ways to offer customers unlimited access to its iTunes music library through either a subscription or a premium-priced iPod.