Closed Music Systems Not Good for the Digital Music Revolution

[Damion Chaplin]

<div class='os_post_top_link'><a href='http://www.usatoday.com/tech/products/2006-10-15-music-war_x.htm' target='_blank'>http://www.usatoday.com/tech/products/2006-10-15-music-war_x.htm</a><br /><br /></div><i>"The top consumer complaint at online music service Napster: Songs purchased at Napster won't play on Apple's iPod. 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. 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... But first, digital will have to overcome its compatibility growing pains. "You don't have to buy a camera made by YouTube to show a clip online," says Bill Pence, chief technical officer for online service Napster. "The industry is dysfunctional.""</i><br /><br /> <img src="http://www.digitalmediathoughts.com/images/DudewithPhones.jpg" /> <br /><br />Bill Pence has a very good point. On the one hand, closed music systems are good for consumers because when someone buys an iPod, they know immediately how to get music on it: Buy it on iTunes. On the other hand, closed systems are bad for consumers because they rule out the other 90% of the players on the market. I don't blame Microsoft for trying out the closed system since it has obviously worked so well for Apple, but I think MS had a chance to stand out from Apple and, more to the point, take a stand against closed music systems. Even the people who started using URGE when MS et al started pimping it are out of luck when it comes to thinking about a Zune purchase. So, what do you think? Do you prefer closed music systems (that may be easier) or the more open approach (that may be more complicated and/or confusing)?

[Felix Torres]

Well, actually it seems the iPod isn't as closed at it apears. :twisted:
DVD Jon has a little business venture going on selling access into the iPod to all comers.
http://www.cnn.com/2006/TECH/ptech/10/24/ipod.code.ap/index.html

Should be fun to see how long it is until Apple padlocks the pod again.

[The Yaz]

I think the author is missing the point. Just because you can buy directly from iTunes doesn't mean the consumer is stuck buying only from iTunes.

Apple's model works because you have the convienience to buy over the web, but can just as well pop in a purchased CD and rip the music into your library.

For the most part, my family uses both iPods, other MP3 players and Pocket PC's, so all of our music has been saved as MP3.

Lately, the only purchases we make on iTunes has been for my kids who will buy one or two new songs at a time. I purchase them and let them play them as AAC immediately. When their purchased file gets to 12-15 songs, I will burn a music CD for backup and then re-rip as MP3 and replace the the purchased AAC files

My wife and I generally like to puchase CD's to have the artwork and liner notes, but we still load it in the computer and burn MP3's as soon as we get home.

The iPod/iTunes is simply very finished and intuitive. Microsoft may have the hardware to make it work but the purchasing/managing of the library is equally important.

My second concern for Microsoft is who is going to buy their Zunes? We have three iPods in our family and after incurring that expense I do not see them being replaced for another 2+ years at least. If other people are in the same boat, how is Microsoft going to push market share?

Steve 8)

[Felix Torres]

how is Microsoft going to push market share?



From the people who wouldn't be caught dead with a pod? ;-)

Over at ZuneThoughts a Microsoft exec already answered that.
Precisely because of the multiple-purchases per customer allegiance of the pod-people, Apple's numbers look higher than they are.

Basically, less than 20% of US households have DAPs.
So, MS thinks they have a shot at the 80% that haven't found anything compelling in the products now on the market.
The music business is way bigger than the digital music business at this point, so there is still room for new players to get into the game.

Poddies may be a lost cause but there is a potential market 4 times bigger just waiting to see something they like. And that is what MS is doing; going for the uncommitteds.

[jlp]

I think the author is missing the point. Just because you can buy directly from iTunes doesn't mean the consumer is stuck buying only from iTunes.

How do you get that the author restricts his views to iTunes?

[jlp]

Here are two other articles on "Unlocking the iPod":

http://money.cnn.com/2006/05/22/technology/business2_launchpad0522/index.htm

http://money.cnn.com/magazines/fortune/fortune_archive/2006/10/30/8391726/index.htm

And with so many restrictions, who would buy a Zune??? Not PlaysForSure buyers that's (the only thing that's) ForSure :evil: