Microsoft Zune intensifies chaos in Apple iPod+iTunes also-ran market

“The top consumer complaint at online music service Napster: Songs purchased at Napster won’t play on Apple’s iPod,” Jefferson Graham reports for USA Today. “It’s not Napster’s fault. Apple’s hugely successful iPod business is built on a closed system. You shop at iTunes Music Store for digital songs and use iTunes software to transfer them effortlessly to the iPod.”

“The system works great for iPod owners. For others, there’s a chaos of competing formats,” Graham reports. “Songs sold at Napster, Rhapsody, Yahoo Music and other online stores are geared to Microsoft-endorsed digital devices, not the iPod. These digital music players from SanDisk, Creative Labs and others can’t easily play songs from iTunes.”

“The chaos promises to intensify next month when Microsoft begins selling the $249 Zune, its attempt to finally dent Apple’s dominance in digital music. Like Apple, Microsoft is introducing a closed system. Songs sold at Microsoft’s new Zune Marketplace store will only play easily on the Zune — not the iPod, not even Microsoft-endorsed devices sold by Creative, SanDisk, iRiver and others,” Graham reports.

“Apple represents 88% of all online music sales — market share that’s virtually unprecedented in any other business — and 70% of the digital music device market,” Graham reports.

Graham reports, “‘This goes against the grain of everything Microsoft has been telling consumers for two years,’ says Ted Cohen, the managing partner of consultant TAG Strategic. ‘I’m stunned.’

Graham reports, “‘Microsoft is thumbing its nose to its partners and millions of consumers,’ says Richard Doherty, an independent analyst with the Envisioneering Group. ‘I can’t think of anybody doing anything like this in all the years I’ve covered consumer electronics.’ Scott Erickson, a Microsoft Zune product manager, says PlaysForSure is for people who want to use other devices. The Zune system is meant to be a closed-end system, as is the iPod. Microsoft is happy offering both, he says. He says Apple has shown that being a one-stop shop for hardware and software is a successful formula.”

Full article here.
Yet another reason to get an iPod of your choice and use iTunes: it just works – and incudes both Mac and Windows users, too.

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Microsoft’s Ballmer: Zune device not money loser, wishes Apple’s 30GB iPod was $299 instead of $249 – October 11, 2006
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Creative does Apple’s dirty work by immediately attacking Microsoft’s Zune – September 17, 2006
Motley Fool’s Jayson: Microsoft’s ‘just plain ugly’ Zune a meager offering, not an iPod killer – September 15, 2006
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34 Comments

  1. “He says Apple has shown that being a one-stop shop for hardware and software is a successful formula.”

    This applies for computers too.
    So why buy hardware (PCs) and software (Windows) from different companies. Just buy it all from one (Apple). Get a Mac.

  2. There is no reason that Microsoft couldn’t run their one-stop shop AND include the ability for users to grandfather in their PlaysForSure music so they can play it on the Zune. Of course, there’s no reason Apple couldn’t add PlaysForSure to the iPod, either, without sacrificing the controlled iTunes -> iPod one-way exit, but at least Apple never made the promise, “PlaysForSure” and then turn around and say, essentially, “So sorry — we changed our minds.”

    The phrase “PlaysForSure” is SURE to live in infamy, to Microsoft’s eternal shame.

  3. “Songs sold at Microsoft’s new Zune Marketplace store will only play easily on the Zune — not the iPod”

    That’s assuming a lot, don’t ya think?? Microsoft doing something that plays “easily”????

  4. All of these systems, even “PlaysForSure,” are closed.

    I’m sick of of “tech” articles saying that the iPod is closed and that Creative, SanDisk, et al are “open.” That’s absurd. The fact is, it’s one DRM or another. And Apple’s DRM plays on more computers than any other. Period.

  5. Hmmmm. If I understand it right —

    YOU can play iTunes music on a third party mp3 player (except Zune??) cause you download the song as an mp3 file and play it. RIGHT??

    You cannont play Napster music on an iPod cause you don’t run WMA software on an iPod. If you could get your Napster music to an mp3 format — then you could play it on an iPod.

    Does this sound right? (PS I thought Zume would play mp3 formats — per their web site notes. )

    Just trying to make sense of this.

    N.

  6. “Norm e.”, iTunes does not support any other MP3 player.

    From http://docs.info.apple.com/article.html?artnum=93071
    “Songs purchased from the iTunes Store are in AAC Protected format. You cannot convert them to other formats, including MP3. You can, however, back them up to a data CD or DVD, or you can burn them to an audio CD.”

    Once on a CD, you can re-import them back into your Mac as an unprotected MP3 file (see iTunes’ Preferences > Importing), but you will need 3rd party software to drive your MP3 player and extract the MP3 files from your hard drive.

  7. Just wait until people figureout MS playforsure songs don’t allow Zune to play those formats, you think it’s confusing NOW?
    Ther are going to be some angry people. I can’t wait ti read the blogs.

    When is Zune coming out? I look forward to reading the trash on it.

  8. Norm e.

    Your question illustrates the confusion of the general public with digital music players.

    There are basically two kinds of digital music files: protected ones and unprotected ones.

    Mp3 files are “unprotected” — in other words, they can be freely copied and shared. Virtually all digital music players can play mp3 files.

    “Protected” files have a layer of encoding that prevent them from being copied and shared and come in many different flavors or file extensions (a file extension letter/number combination after the period or “dot” in a file name.) All downloaded content purchased from online music stores is “protected.” (Protection is often referred to as “DRM”)

    This is where you need to be careful when purchasing a player. If you prefer to purchase music from iTunes, then get an iPod. If you prefer to purchase from the still-unreleased Zune Marketplace, then get a Zune. If you prefer to purchase from Real, Yahoo, Napster, or Amazon, then get one of the players endorsed by them. But be careful, not all “PlaysForSure” players really play downloaded content.

  9. I know two people who have non-iPod MP3 players (a River and a Rio, I think). They didn’t get iPods because they didn’t want to be like everyone else, and they wouldn’t admit that the iPod is a better player. Of course, now they struggle to do simple things like load music onto their players. Songs bought from various non-Apple online stores sometimes work and sometimes don’t – it’s a complete crapshoot. These are not computer illiterate people by any means either. The iPod is popular because it “just works” like the Mac.

  10. Mafia$oft’s partners must feel “played for sure” right about now.

    <rimshot>

    To solve the above argument, burning a song bought on iTunes onto a CD and then reimporting it as a MP3 or AAC file removes the DRM and lets you do anything with the file you please, effectively allowing iTunes bought songs to be played on any player – once you go through the process.

    Thank you, thank you. The next show is at 11:00.

    <rimshot>

  11. thelt wrote: “This is where you need to be careful when purchasing a player. If you prefer to purchase music from iTunes, then get an iPod. If you prefer to purchase from the still-unreleased Zune Marketplace, then get a Zune. If you prefer to purchase from Real, Yahoo, Napster, or Amazon, then get one of the players endorsed by them.”

    Although I do not disagree with the notion that if one has a strong preference for a particular music store, you should definitely buy a matched device, I wonder if anyone really does let that drive their player purchase. In other words, is the player or store more important to people. I suspect that the prefernce of player drives music store use and not vice versa. At least as it currently stands, the vast majority on the average player is NOT from download stores, most of which have very similar content (I believe iTS hasa the most, but the overall differences are minimal). There are some stores that are very different, as they serve niches, but most of those are DRM-free, so the work with any player.

    I think iTS is the best store (thinking about music only here), both in terms of user interface, ease of use, and content. However, even if some acts that I like were on, for example, Napster only, I would still get an iPod. The music can still be purchased on CD, even if I did not already buy most of my music on CD already.

    I suppose this balance will change when downloads are 50% of all music sold. However, I believe at this point, the player drives the choice of store, instead of the oppposite.

  12. “Yet another reason to get an iPod of your choice and use iTunes: it just works – and incudes both Mac and Windows users, too.”

    And for Apple to offer more buying options in iTunes. It’s obvious consumers want choice or else they wouldn’t be using Napster (which offers subscriptions, also) in the first place.

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