Rumor: MS plans free song ploy to convert iPod users
Microsoft Corp. may be exploring a go-to-market strategy for its upcoming digital media player that would include giving iPod converts free access to download songs already purchased from Apple Computer's iTunes Music Store.
According to a report on Engadget, Microsoft's upcoming digital media player software may scan a user's iTunes library for purchased media and then automatically make those files available as free downloads from Microsoft's online music and video service.
"Microsoft will still have to pay the rights-holders for the songs, but they believe it'll be worth it to acquire converts to their new player," the publication said. Apple, of course, could then alter the way it stores and categorizes iTunes files, rendering Microsoft's software inoperable.
Currently, songs purchased from Apple's industry leading iTunes Music Store cannot be played on competing devices, which could deter iPod owners from switching to rival players.
Recent media reports have suggested that like Apple, Microsoft plans to enter the digital media player and digital download markets later this fall with its own end-to-end model, where it will control all aspects of the inter-working technology.
In its report on the subject, Engadget corroborates rumors that Microsoft's player will include Wi-Fi capabilities and says the device will pack a screen that's "bigger than that of the iPod video."
Microsoft reportedly plans to launch the device by November and follow up in 2007 with a MVNO (Mobile Virtual Network Operator) service where Windows Mobile-powered HTC handsets will be able to communicate on the same social network as the company's digital media player.
According to a report on Engadget, Microsoft's upcoming digital media player software may scan a user's iTunes library for purchased media and then automatically make those files available as free downloads from Microsoft's online music and video service.
"Microsoft will still have to pay the rights-holders for the songs, but they believe it'll be worth it to acquire converts to their new player," the publication said. Apple, of course, could then alter the way it stores and categorizes iTunes files, rendering Microsoft's software inoperable.
Currently, songs purchased from Apple's industry leading iTunes Music Store cannot be played on competing devices, which could deter iPod owners from switching to rival players.
Recent media reports have suggested that like Apple, Microsoft plans to enter the digital media player and digital download markets later this fall with its own end-to-end model, where it will control all aspects of the inter-working technology.
In its report on the subject, Engadget corroborates rumors that Microsoft's player will include Wi-Fi capabilities and says the device will pack a screen that's "bigger than that of the iPod video."
Microsoft reportedly plans to launch the device by November and follow up in 2007 with a MVNO (Mobile Virtual Network Operator) service where Windows Mobile-powered HTC handsets will be able to communicate on the same social network as the company's digital media player.
Comments
Engadget corroborates rumors that Microsoft's player will include Wi-Fi capabilities and says the device will pack a screen that's "bigger than that of the iPod video."
"I got a bigger wee-wee than you!"
I must be losing some of my fanboyism because I don't see this as anything like that at all.
I think this is an excellent marketing decision on Microsoft's part. It's a great way to counter Apple's lock-in stragety with the iTMS (I'm amazed the record companies agreed to do it.)
If their music player and software both work on a Mac and their new music player offers things the iPod doesn't, I would actually consider switching to their product.
Realistically though, I doubt that what they come out with will be fully compatible with the Mac (if at all), and if it is, I find it unlikely that there will be enough benefit over the next iPod offering for me to switch.
Regarding the news about Microsoft giving free copies of already purchased iTunes music, this could be a good thing for some people, but it will have a very small overall affect on the market. What many people are forgetting is that most of the people who use PCs and would think about switching to a Microsoft player are the same people who don't want to bother learning new software, buying new hardware, and going through the process of moving their music (and video) library over to another program and player.
Originally posted by Zweben
I think this is an excellent marketing decision on Microsoft's part. It's a great way to counter Apple's lock-in stragety with the iTMS (I'm amazed the record companies agreed to do it.)
If you re-read the article, you'll see that the record companies didn't give them permission to give out free songs, Microsoft is going to be paying for each of those songs (although probably at a discounted price).
I think it would be funny to install Microsoft's music player, download the free songs, and then not use them, giving Microsoft a gigantic bill for nothing.
Originally posted by Zweben
If their music player and software both work on a Mac
I'm wondering if Microsoft won't offer the "tiered" music pricing that the record companies wanted so all the companies will flock to them (assuming Microsoft product gains in popularity) and threaten to drop Apple, forcing Apple to buy into the same pricing scheme.
Any thoughts?
I'll believe Microsoft can beat the iPod when I see it.
This tactic would likely lure away some iPod users and would take away some of Apple's market share in this sector.
It will be interesting to see what transpires.
Originally posted by amac4me
This tactic would likely lure away some iPod users and would take away some of Apple's market share in this sector.
Why? Because it's made by Microsoft? Do you really think that there are very many people who are so un-happy with iPod/iTunes that they can't wait to switch to Microsofts solution?
The average iPod owner has a $20 iTunes purchased library. If they really are un-happy with their iPod and iTunes, I don't think a $20 digital library is going to stop them from switching to one of the myriad of other players and music services currently available.
The publics perception of Microsoft is of a highly un-trusted company.
Originally posted by solsun
Why? Because it's made by Microsoft? Do you really think that there are very many people who are so un-happy with iPod/iTunes that they can't wait to switch to Microsofts solution?
The average iPod owner has a $20 iTunes purchased library. If they really are un-happy with their iPod and iTunes, I don't think a $20 digital library is going to stop them from switching to one of the myriad of other players and music services currently available.
The publics perception of Microsoft is of a highly un-trusted company.
I think the average Microsoftie's attitude is: "I don't like it, but if there was anything better out there, wouldn't it be more popular than Windows?"
They're sheep.
Originally posted by AppleInsider
Microsoft Corp. may be exploring a go-to-market strategy for its upcoming digital media player that would include giving iPod converts free access to download songs already purchased from Apple Computer's iTunes Music Store.
Hmm, here's a note to the Record Industry. If Apple doesn't upgrade their software (though I do hope that they will), P2P Networks could be bursting with protected files. Then use Microsoft to unlock and give the song away?
I doubt Apple will respond but what will happen is some smart aleck Windows hacker will write a utility that makes every mp3 look like an m4p to the Windows itunes ... so basically, MS will have to shut it down hours or at most 3 days from the time they launch.
Basically Rhapsody offers that now and what's their market share for ipod owners? A couple hundred?
The real reason for the success of the ipod is convenience.
The MS Portable Cool Muuzic 360! (or whatever they call it) and its alledged conversion is not really convenient. How many people convert mp3 to mp4's because it's a slightly smaller file size? People who buy tracks on itunes do it because it's convenient - it's ONE CLICK to do it all. Converting it is pointless.
Will some people take advantage of it - sure, the same % of people who rip in OGG and then listen with $8 headphones riding a noisy train and swear it sounds better.
Besides the hack, you know what will happen - first you sign up for passport, MS will assign you a 27 digit security code for every song you convert. if it goes wonky, email passprt to get support or get in the queue for $49 a year ... meanwhile enjoy the splash screens for Vista, XBox 360 and love & kises from Steve Ballmer.
Then everytime you play the song, you must be connected to the internet for verification.
Meanwhile, the patch for version 1.001 will load.
Or the interface will be as good as their Q phone ... only 2 menus and one other submenu to choose speakerphone ... ity's taken them 9 years to come within 5 years of equalling palm/treo OS that has essentially not been updated for 8 years ... so when will they catch ipod 2006 ... in 2020?
Meanwhile Apple will come out with an ipod with an 8" screen that has bluetooth and will dock with a really mini mini mac to make it an ultimate machine.
Originally posted by solsun
Why? Because it's made by Microsoft? Do you really think that there are very many people who are so un-happy with iPod/iTunes that they can't wait to switch to Microsofts solution?
The average iPod owner has a $20 iTunes purchased library. If they really are un-happy with their iPod and iTunes, I don't think a $20 digital library is going to stop them from switching to one of the myriad of other players and music services currently available.
The publics perception of Microsoft is of a highly un-trusted company.
I don't think it has anything to do with happiness / unhappiness. Microsoft has the ability to offer it cheap, and that's what people like.
Afterall, think of it like this. Microsoft doesn't have to pay for R&D, they just have to take what Apple created, beef it up a bit and call it quits. They sell it and the cheepies pay for it.
Microsoft pisses me off. You don't see Apple hording in with the iBox or somehting. (XBox Rival)
Originally posted by CRHain88
I don't think it has anything to do with happiness / unhappiness. Microsoft has the ability to offer it cheap, and that's what people like.
Afterall, think of it like this. Microsoft doesn't have to pay for R&D, they just have to take what Apple created, beef it up a bit and call it quits. They sell it and the cheepies pay for it.
Microsoft pisses me off. You don't see Apple hording in with the iBox or somehting. (XBox Rival)
So you're saying that you think MS will not only re-purchase iTunes libraries, but that they will also subsidize the player? What would be the point?
No thanks, Microsoft, don't bribe the thieves for me so I can walk up your driveway without getting mugged, I think I'll just avoid your driveway altogether.
Originally posted by solsun
So you're saying that you think MS will not only re-purchase iTunes libraries, but that they will also subsidize the player? What would be the point?
To get people buying songs from mTunes (or whatever they call it...even with free conversion of your iTunes tracks which is a great idea, I see Microsoft totally borking the UI and everything else) which in turn makes them money etc etc etc. Microsoft is notorious for doing this, they weren't even charging license fees for game houses making 360 games (dunno if there still doing this, but they were for a while)....they eat the cost for a while but then they have a huge user base they can keep up.
Anyway, for Microsoft to actually make money on this they have to design a better experience: better media player, better UI, better hardware, better everything. I don't see this happening, but hey maybe even Microsoft is capable of surprising us. BTW, better experience includes no more DRM restrictions than iTunes has...I really doubt that'll happen. Microsoft letting you burn songs onto a CD an unlimited amount of times? Doubtful.
People who think giving you a free library is fair business are nuts. Imagine Sony gave everyone who bought HD-DVD the same movies they bought but in Blu-Ray with a purchase of a player because they have more money than Toshiba. That's anticompetitve business
People should expect to get new collections when switching to a new audio, or video format or console systems. This type of bs is what is only going to lead to the eventual one corporation owning practically everything, most likely governments included.
Originally posted by halo1982
To get people buying songs from mTunes
But the money is not in selling the music, it's in selling the hardware. If they have to bite the bullet and pay for people previous iTunes purchases, then so be it. But if they are not making money by selling the player, then there is no point. Apple has proven that there is no money in the store, they do little more than break even with iTunes.