Let the music store FUD begin!
In USA Today there is an article about the explosion of music store that is going to hit in 2004. It seems as if MS has come up with the talking points that they are going to use in this latest platform war.
Now we know the differences between music stores. But to the average consumer is this going to be a concern? Should Apple start fighting back by going after the "choice" that MS and their shill partners are pushing?
Quote:
"The best part about Windows Media is that it unlocks choice," Microsoft's Fester says. "You can buy from the store or use the device that gives you the best experience."
"The best part about Windows Media is that it unlocks choice," Microsoft's Fester says. "You can buy from the store or use the device that gives you the best experience."
Now we know the differences between music stores. But to the average consumer is this going to be a concern? Should Apple start fighting back by going after the "choice" that MS and their shill partners are pushing?
Comments
Yes, iTMS has been the trojan horse in increasing iPods sales. And by allowing it to work with other MP3 players, you risk losing some hardware sales. However, the iPod is still the player to have (heck, it appeared in the movie Stuck on You). People want one because of it's ease of use and coolness factor.
And, if rumours of a cheaper iPod in January is true, Apple could have this market locked up.
The irony of the MS talking point would be funny if it weren't so damn, well, ironic.
Originally posted by CosmoNut
Apple really needs to open the iPod and iTunes up to Windows Media. After that, what does the competition have to offer above Apple's products?
Price?
Let M$ make the move first...they will have to or otherwise be marginalized out of this fast growing market.
Open standards used by AAPL will win this one. M$ is already in a decline in driving the standards going forward.
Online music sales have got a long way to go before they catch up to actual CD sales and both have got an even longer way to go before they catch up with illegal download numbers.
Fortunately, provided it's in an acceptable format, the iPod couldn't care less how you acquired your music.
Seems to me, that at least for the time being, Plan A (sell iPods like crazy) is coming along just fine. No need for Plan B just yet.
Originally posted by satchmo
I think Apple needs to make it's iTMS a bit more flexible to work with other MP3 players on the market.
Yes, iTMS has been the trojan horse in increasing iPods sales. And by allowing it to work with other MP3 players, you risk losing some hardware sales.
Wouldn't this defeat the whole point of Apple's strategy? Apple is making its money on the iPods. Enabling other competitors (to iPod) seems crazy to me.
Originally posted by CosmoNut
Apple really needs to open the iPod and iTunes up to Windows Media. After that, what does the competition have to offer above Apple's products?
This also seems wrong to me. Under the surface here is a "format war"...AAC vs. WMA. Apple needs to avoid being beholden to MS, yet again. Currently Apple is right...AAC has the largest market share of (legally) downloaded music. Why would Apple enable MS to gain more of a foothold here?
Originally posted by Synotic
Price?
Actually Apple competes fairly well on price. What they are lacking is choice...that is a choice for someone that doesn't have (or is unwilling to pay) $300 for a music player.
I suspect that if the new miniPod rumors are true, and pricing comes in at say $150 and $200 for 2GB and 4GB...the game is over. Apple will take the low end too. This will hold off the WMA meme and Apple can take the market.
Originally posted by Chris Cuilla
Wouldn't this defeat the whole point of Apple's strategy? Apple is making its money on the iPods. Enabling other competitors (to iPod) seems crazy to me.
Just quote the last sentence of my post for my answer.
Originally posted by satchmo
However, the iPod is still the player to have (heck, it appeared in the movie Stuck on You
It is in Timeline too.
1. There is no profit to be made selling the music. This could change, but it looks to largely be a true statement.
2. Apple is making money selling the hardware.
3. Apple has the #1 music store (thus the #1 music format...AAC)
4. Apple has the #1 music player.
Given these two facts here are some questions:
1. Why would Apple enable WMA on the iPod? To give consumers more choices of music stores? Perhaps. This is the MOST possible idea. But why? If #1, above, is correct...those stores aren't going to be in business 1 year from now. There is now money to be made. Secondly, what is the "choice" people suddenly have? To buy the same music at the same price from different source. Big deal. Competition will NOT drive prices down here...because it will only bankrupt these companies FASTER. So consumers aren't really getting more choice. They don't really have more choice now. What is the difference between Naptser, BuyMusic and iTMS? Price? Nope. Quality? AAC may have an edge here? Flexibility? Again iTMS may have an edge here. There is no choice to be had.
2. Why would Apple open Fairplay DRM (AAC is already open)? To enable competitors to build competitive music players and cut into Apple's business? For what? Again to give consumers more "choice"? Okay, but what choice (in hardware) do the consumers really want? A better selection of various priced devices? If Apple finds a way to address this in the future, they will have answered this concern. Frankly, Apple has a pretty good deal going on their devices. You can get a cheaper device from Dell, sure, but again, there is a limit to this "competitive down-bidding"...and Dell has probably already hit the bottom. As far as the "low end"...well Right now you can get 1/40th the capacity for 1/2 the price (of the low-end iPod). If Apple can do SOME kind of iPod for $150, they can offer the choices desired, to gain access and (portable) use of the most popular music store around. I think once Apple saturates the high-end market, they release the low-end iPod. Once they've run the course there...and killed WMA...and the other music stores...maybe then they license Fairplay to competitors...they've taken most of the market...but now they make a play to get the rest of the market unwilling to buy "Apple"...but still pay an "Apple tax". Furthermore...they begin offering "private labeled iTMS" to companies desiring to sell music as a "loss leader" for other things (soft drinks, cars, appliances, phone service, etc.) meanwhile continuing to drive a greater desire/demand for portable music players...of which Apple will be the leader (and the owner of the DRM technology behind all of them).
THAT is the end-game folks. Apple has thought this through. They know MS. They know the game. That is how it will be played out.
Originally posted by Chris Cuilla
Currently Apple is right...AAC has the largest market share of (legally) downloaded music. Why would Apple enable MS to gain more of a foothold here?
iTunes and the iPod should be able to play WMA for the simple fact that there are a lot of Windows users who legally own their music CDs and have ripped them into Windows Media Player. If their ENTIRE collection of music (say 5GB) is in WMA format, why would they want to use iTunes and subsequently get an iPod (which will only work with iTunes)? Their *legally ripped* music isn't compatible!
Remember, we're not just talking about the iTMS here. A lot of people still have a lot of CDs out there, and the format that they're originally ripped in will have a lot of influence one what products they use in the future. If Apple accepts WMA as a format compatible with iTunes and iPod, then it will open the doors for a whole other group of consumers. I'm not suggesting that iTunes be able to rip to WMA, just play it for "backwards" compatibility (pun intended).
Originally posted by CosmoNut
iTunes and the iPod should be able to play WMA for the simple fact that there are a lot of Windows users who legally own their music CDs and have ripped them into Windows Media Player. If their ENTIRE collection of music (say 5GB) is in WMA format, why would they want to use iTunes and subsequently get an iPod (which will only work with iTunes)? Their *legally ripped* music isn't compatible!
Remember, we're not just talking about the iTMS here. A lot of people still have a lot of CDs out there, and the format that they're originally ripped in will have a lot of influence one what products they use in the future. If Apple accepts WMA as a format compatible with iTunes and iPod, then it will open the doors for a whole other group of consumers. I'm not suggesting that iTunes be able to rip to WMA, just play it for "backwards" compatibility (pun intended).
Good point. I suggested earlier that Apple allow the iPod and iTunes to play WMA files that do not contain DRM from the competing music stores. The major issue with this was that the default configuration for WMA was to rip songs with DRM built in, but I don't have a PC to confirm this.
Originally posted by HOM
Good point. I suggested earlier that Apple allow the iPod and iTunes to play WMA files that do not contain DRM from the competing music stores. The major issue with this was that the default configuration for WMA was to rip songs with DRM built in, but I don't have a PC to confirm this.
This is a problem if it is true.
What's FUD stand for?
Originally posted by Kenneth
>>Topic: Let the music store FUD begin!
What's FUD stand for?
Fear, Uncertainty, and Doubt. It was a tactic used by IBM to scare customers from switching to other companies but perfected my MS and Intel. This is FUD because MS is telling customers that if they use either the iPod or iTMS they are locked into Apple's format whereas if they use MS's they have a choice of music stores and a choice of music players.
Originally posted by Chris Cuilla
This is a problem if it is true.
In WiMP 9 at least, it's true.
Originally posted by Chris Cuilla
1. Why would Apple enable WMA on the iPod? To give consumers more choices of music stores? Perhaps. This is the MOST possible idea. But why? If #1, above, is correct...those stores aren't going to be in business 1 year from now. There is now money to be made. Secondly, what is the "choice" people suddenly have? To buy the same music at the same price from different source.
I suppose there is the issue of selection. I'm not sure what exclusives or music library of the competitiors such as Napster and Buy.com have. By enabling WMA, someone with a subscription service outside of iTMS might actually consider buying an iPod.