NYTimes: Zune Only Selling to iPod Haters

[Adam Krebs]

<div class='os_post_top_link'><a href='http://www.nytimes.com/2008/08/10/magazine/10wwln-consumed-t.html' target='_blank'>http://www.nytimes.com/2008/08/10/m...consumed-t.html</a><br /><br /></div><p>"<em>When the Microsoft Zune digital music player first appeared, it was the latest in a long line of gizmos to which the phrase 'iPod killer' was hopefully attached. And let's be clear about something: This column makes absolutely no suggestion that there is any credible evidence that this is happening. The most recent figures from NPD Group, the retail-data collector, showed Apple's device holding 70 percent of the MP3-player market, compared with 3 percent for the Zune. (This put Microsoft in third place, behind SanDisk, at 10 percent.)... But the most salient feature of the Zune seems to be that it&rsquo;s not an iPod.</em>"</p><p><img src="http://images.thoughtsmedia.com/resizer/thumbs/size/600/zt/auto/1218485308.usr495.jpg" border="1" /></p><p>The New York Times Magazine's <em>Consumed</em> column always offers an interesting outside perspective on trends among consumer products. This week, Rob Walker sets his sites on Zune buyers, wondering why anyone would consider a Zune if Apple's iPod is seemingly fine for most people. Walker concludes that the only people who buy a Zune do so simply because it isn't an iPod. As <a href="http://arstechnica.com/journals/microsoft.ars/2008/08/11/the-zune-is-more-than-just-the-antipod" target="_blank">Ars Technica</a> points out, this just isn't the case; "<em>Zune would still be selling if the iPod didn't exist. Consumers aren't simply buying the Zune because they don't like the iPod: there are features (like wireless sync) that the iPod doesn't have and that some consumers want. If the Zune didn't have unique features and Microsoft didn't keep trying to add them, it wouldn't succeed against the other, non-iPod competition.</em>"</p><p>One only needs to look to websites like the excellent <a href="http://www.anythingbutipod.com/" target="_blank">AnythingButiPod</a> to see the market for non-iPod players is still quite large. In order to have any success in this market, the Zune team will need to show not only why it is different from the iPod, but also how it will tap into the market that does not yet own an MP3 player. Things like the recent <a href="http://www.reuters.com/article/technologyNews/idUSN1129355120080811" target="_blank">Hollywood/Zune whisperings</a> should help expand its reach some.</p>

[wshwe]

MS should be embarrassed. They're in 3rd place behind Sandisk. Steve Balllmer had to order his kids to stop using iPods.

[Janak Parekh]

They're in 3rd place behind Sandisk. Well, this brings up an interesting question: why should people get a Zune over a Sandisk? Is the Zune software/hardware pairing better than what Sandisk provides? The one potentially alluring feature of the Zune, to me, is the subscription music, but Sandisk offers that as well.

--janak

[ManMythLegend]

Zune only holds 3% of the market share? That's really depressing...

[tbird]

There is probably some truth in the statement that the Zune is only selling to Ipod haters. I don't hate the Ipod, but I sure got tired of buying them for my kids only to have them go belly up after six months and just as soon as a new verison came out I had to start all over. Jeez, maybe I do hate the Ipod!;)
I don't know squat about Sandisk, only that it is an inexpensive mp3 player, which probably explains why it has a bigger share of the market than the Zune.
Will the Zune ever overtake the Ipod? Probably not...simply because most people who buy the Ipod don't compare products, they just buy because its an Ipod and that's all they know and honestly they could care less.
However there is a growing number of people who do compare and look at features and make a educated decision instead of simply playing follow the leader.
Heres a good example. I have three kids home from college this summer they all have Ipods, but what player is always being used? The Zune!
Where are they buying tunes and video's? MarketPlace!
Articles like the one in the NY Times imo, are written by people who look at other articles and numbers and don't do their homework (like actually trying out a product) before they write about it.

[Janak Parekh]

There is probably some truth in the statement that the Zune is only selling to Ipod haters. I don't hate the Ipod, but I sure got tired of buying them for my kids only to have them go belly up after six months and just as soon as a new verison came out I had to start all over. Jeez, maybe I do hate the Ipod!;) :confused: Why would you upgrade when each new version came out? Would you ditch the 1G Zune when the 2G units came out?

I don't know squat about Sandisk, only that it is an inexpensive mp3 player, which probably explains why it has a bigger share of the market than the Zune. Interesting... so from your perspective, the Zune is better-marketed. Sandisk is not just about inexpensive MP3 players -- they still are the only major manufacturer to have a player that will stream subscription music over WiFi, for example.

However there is a growing number of people who do compare and look at features and make a educated decision instead of simply playing follow the leader. It's interesting that the Zune is preferred in your household, but the overall marketshare numbers don't support your hypothesis. I would also argue that players like the iPod touch have their own unique features that the Zune does not have, so it's not merely a "follow-the-leader" metric (although I would agree that's a nontrivial part of it).

--janak

[djdj]

I don't hate the iPod, in fact I own an iPod Touch, but my music is in WMA format so iPods won't play it (I ripped 95% of it before the iPod was popular; AAC support on Windows is scarce; and MP3 sounds terrible.). Getting the Zune was a much simpler solution than re-ripping 1400 CDs. And once I got the Zune I really really liked it. Why not SanDisk? No high capacity player.

[Rocco Augusto]

Zune only holds 3% of the market share? That's really depressing...

If I'm not mistaken, doesn't Apple and Sandisk have pretty much worldwide distribution of their digital music players as well as countless generations of devices between both companies?

Microsoft is jumping into the game move than a few years late and since we're only our the second generation you don't have a large selection in hardware to own at the moment. Being able to secure 3% of a market that spans millions and millions of players is a pretty huge accomplishment in such a short period of time. It could be better but it usually takes Microsoft 3 tries to get something right.

[Rocco Augusto]

:confused: Why would you upgrade when each new version came out? Would you ditch the 1G Zune when the 2G units came out?

I still have my 1G Zune. I want a new one but this one won't break no matter how many I hit it with a hammer... I mean wish it would stop working to justify me getting a new one. :rolleyes:

[Janak Parekh]

It could be better but it usually takes Microsoft 3 tries to get something right. Good point. Does PlaysForSure count as the first? If so, what's the successor to Zune? :D

--janak

[Jason Dunn]

MS should be embarrassed. They're in 3rd place behind Sandisk.

You have to remember though that SanDisk has a broader product family - I have no idea on the numbers, but SanDisk probably sells a lot of their very small players...and there is no Zune that competes in that space. I have a SanDisk Sansa and while I like it as a player, I haven't changed the music on it in months, because I hate using WMP10 for loading up music. I'd MUCH rather use the Zune software...

The Zune needs to continue to grow into new form-factors so they can compete at every level.

[Jason Dunn]

Good point. Does PlaysForSure count as the first?

No, of course not - the Zune is in it's second generation. You can't consider a platform where Microsoft controlled neither the hardware nor all of the music back-end a first generation...

[tbird]

:confused: Why would you upgrade when each new version came out? Would you ditch the 1G Zune when the 2G units came out?

***long quote trimmed by mod JD***

Ok, apparently you don't have kids. I upgraded the Ipod's because as the years went by they either quit working or were lost. I probably should have said replace instead of upgrade, my bad!

I didn't say the Zune was better marketed, you some how read that into my comment. As I said I don't know anything about the Sandisk, but common sense should tell you that a cheaper player that does the same thing (with less space, which to some is not a big deal) as a more expensive player is probably more attractive to a lot of people. Had I known about the Sandisk or other players years ago I probably would have gotten the kids them instead of the Ipod. But back in the day when I was buying this stuff for the kids I was still listening to tunes on Vinyl and cd's and could care less about about all this new fangled stuff.

Yes it is interesting to me at least, that the Zune is perfered in my household. The reason I find it interesting is because they all told me to get an Ipod, but I didn't and got a Zune instead. But now its the player of choice, in my house at least, market shares be damned;). I was just sharing something that I thought was interesting. I am sure the Ipod Touch and other players all have their own unique features, but honestly I don't care.
My Zune does what I want it to do.

Man this is bringing back memories of trying to explain a term paper to a college professor!!!:eek:

[Janak Parekh]

I didn't say the Zune was better marketed, you some how read that into my comment. As I said I don't know anything about the Sandisk, but common sense should tell you that a cheaper player that does the same thing (with less space, which to some is not a big deal) as a more expensive player is probably more attractive to a lot of people. Had I known about the Sandisk or other players years ago I probably would have gotten the kids them instead of the Ipod. But doesn't that effectively mean the Zune is better-known than Sandisk? Maybe "better marketed" is the wrong term, but my point still stands.

My Zune does what I want it to do. Which is perfectly fine. That's the most important thing -- that the tool does the job. :)

Man this is bringing back memories of trying to explain a term paper to a college professor!!!:eek: You're reading way too much into my comments. ;) I just find the Sandisk/Zune comparison interesting, and used your comments as a very small sample size...

--janak

[Rocco Augusto]

Good point. Does PlaysForSure count as the first? If so, what's the successor to Zune? :D

--janak

PlayForSure, like Microsoft Bob, we're really practice jokes not meant to be taken seriously... There is no PlayForSure ::waves hand::

[donc36]

Interesting discussion. When I purchased my Zune (Gen 1 a few weeks after they came out), it was because of the specs. I don't hate iPods - in fact, I bought nanos for my kids just before I bought my first zune. One of those, by the way, failed after about 13 months.

The Zune (at the time) - Larger screen, wifi (OK - crippled wifi , but I *thought* it had potential, some of which was unlocked with the new software) FM radio, and the zune subscription. I still have that device, and there are now a total of 5 in the house, sharing 2 subscriptions. 5 users, each LEGALLY download the music of thier choice, for just under $30.00 a month. You can't do that on an iPod. I can't keep 20 gb of tunes and an "emergency" copy of a kids movie for those long trips with my daughter on a sansa. For me, the zune just makes sense.

[Jason Dunn]

Interesting discussion. When I purchased my Zune (Gen 1 a few weeks after they came out), it was because of the specs...FM radio...

Uh-oh. Better not let some other users see you mention the FM radio, some people are convinced (http://forums.thoughtsmedia.com/f5/zune-pass-living-up-hype-89896-4.html) that the FM radio doesn't matter to anyone on the planet. :rolleyes:

[donc36]

Uh-oh. Better not let some other users see you mention the FM radio, some people are convinced (http://forums.thoughtsmedia.com/f5/zune-pass-living-up-hype-89896-4.html) that the FM radio doesn't matter to anyone on the planet. :rolleyes:

Opps- sorry. Didn't want to open a can of worms. :D 71% of iPod users are certainly welcome to their opinion - and I'll be the first to acknowledge it's perfectly valid for them. FM and wireless were part of my purchase decision.

I guess I'm in a minority - but what the heck - I own a zune - being in the minority doesn't really bother me :p I'm still satisfied with my purchase, 2 years after I made it.