by Playfuls Staff |
7th July 2006
At the beginning there was the iPod. And the iPod was at Apple. And Microsoft couldn’t accept that.[more]
First the Cain-and-Abel-brotherhood in the IT world (Apple and Microsoft were the first companies to launch original configurations, specifications and standards for what was to become our personal computer) was disturbed by iTunes, which eventually turned into a mass phenomenon, leaving Microsoft far behind.
Then came the iPod, compatible of course only with iTunes, which again turned not only into a huge market success, but into a fashion. It gained so much popularity that even sports-equipment giant Nike was attracted to it and thus signed a contract with Apple for a common Nike+iPod Sports Kit, which will be available for all their six sport shoes types: Air Zoom Plus, Air Max Moto, Nike Shox Turbo OH, Air Max 180, Shox Navina and Air Max 90.
The iPod and iTunes now control 80% of the digital music market, which is growing exponentially. Microsoft cannot accept that its dominant position can be threatened, even if it deals with an area that is not exactly linked to software.
So they first launched MSN Music, which did not manage to attract many users and it certainly did not shake the iTunes giant. So Redmond officials thought of a partnership, even if that would mean losing some money in the benefit of the partner. Which in this case is MTV, the well known music television. The result of such alliance was the URGE music download service, launched simultaneously with the new edition of Windows Media Player (now at version 11).
Up until now, URGE didn’t exceed expectations and let’s not forget that Apple is not standing still in front of the concurrence (rumors have circulated about talks that Steve Jobs was having with big movie studios to begin video download on iTunes).
These are probably the reasons for which Microsoft is allegedly taking into account the final solution against iPod: a new MP3 player built entirely under Microsoft’s brand.
Gadget-oriented site Gizmodo reports that the new device is due for Christmas and that, unlike the iPod, it boasts with wireless fidelity capabilities. Another iPod-killing feature is the possibility to receive a bonus of some kind if the owner of the gadget agrees to watch entirely an advert presented on the screen, bonus that ranges from a discount coupon to voucher. The gadget shall receive an ad from an “Ad-Node”, through a sensor integrated into the MP3 player.
Another thing that Microsoft hopes to attract users with is the possibility to share songs with those detaining the same Redmond-built device, using the wireless capabilities. You like a song, mark it for download and the rest is done by the MP3 player.
Moreover, iTunes should fear Microsoft’s cunning plan to cut from its market share.
A piece of software integrated into the small device will examine your current iTunes library for songs you've already bought and let you download them from the Microsoft store for free.
This idea to smash down iTunes because of its lack of interoperability might actually work (don’t forget that France is already working on eliminating this exclusivist feature from iTunes) but it will cost Microsoft a huge amount of money, which it will pay to the music producers.
Rumor has it that Microsoft is already in talks to secure licenses to sell digital content for its future MP3 player.
The stakes for Microsoft extend beyond the online music market, said Phil Leigh, an analyst with Inside Digital Media.
“It's becoming increasingly evident that video is migrating to the Internet, and Apple is getting a lead there as well.”
Speculations have also been made about a larger screen than the current iPod’s and a serious orientation towards "Connected Entertainment", with interoperability between the device and X BOX Live! or Windows Mobile-powered handhelds. It should be available before Christmas to compete with the new products that rivals are planning to sell for this important shopping period of the year: Sony’s PS3, Nintendo’s Wii and, of course, Apple’s revamped iPod.
For its part, updates to the iPod are among things that Apple is expected to show off at its annual developers conference in San Francisco next month. While wireless downloading is one possibility, analysts have speculated about an iPod cellphone or a new video iPod with a larger screen.
Until now, the Redmond software giant said it did not "have anything to announce at this time".
Nate Elliott, digital home analyst at Jupiter Research, said that if Microsoft were planning an MP3 player it would be because of "frustration".
"Microsoft and its partners have made no significant headway into Apple's dominance of the market."
