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Zune beating the iPod? Microsoft's music player sells one million units

Brian White — Mon, 28 May 2007 15:13:00 EST

Filed under: Products and Services, Microsoft (MSFT)

When Microsoft Corp. (NASDAQ: MSFT) released the Zune digital music player last November, there were inklings that the company who could challenge Apple Inc. (NASDAQ: AAPL)'s iPod dominance had finally arrived. The splintered digital music universe of a zillion companies making MP3 music players was a dizzying array of incompatibilities and cheaply-made junk that gave Apple no challenge in creating an complete "music ecosystem" that has made it the undisputed champion in the digital music player arena.

So, when Microsoft's Zune was launched, the company was attempting to compete with Apple head-on with nicely-designed products and a complete set of online music download tools that would attempt to re-create and complete Apple iPod experience -- but from Microsoft. Its Zune music and media player had a few features the iPod lacked -- like WiFi wireless networking -- but limited the usability of some of those advanced features as to make them useless to experienced digital music player fans.

Well, in the six months since the Zune was released, Microsoft has reportedly sold one million of the players, which is a pretty decent start on competing with the formidable iPod -- but it has a long, long way to go. Just as with the gaming division (xbox 360), Microsoft (most likely) is in this game for the long haul and probably intends on competing with Apple for several years in the digital music player space before even making a small dent in the iPod's marketshare. Redmond has plenty of patience and money to do this, so the Zune -- contrary to beliefs that it will die a quick death -- will be here for a while. One million units is decently impressive at this point, but there are more millions to go most likely.

[Disclosure: I own MSFT shares as of 5-28-07]

Zune beating the iPod? Microsoft's music player sells one million units originally appeared on BloggingStocks on Mon, 28 May 2007 15:13:00 EST. Please see our terms for use of feeds.

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Market share vs. installed base: which is more important?

Brian White — Tue, 20 Mar 2007 18:57:00 EST

Filed under: Products and Services, Industry, Competitive Strategy, Microsoft (MSFT), Apple Inc (AAPL)

One of the reasons I don't get that excited about numbers from market research groups is due to the fact that so much of the data collection methodology and the slivers of detail that can make or refute a single number are never publicly mentioned anywhere. This includes NPD, Forrester, IDC and other well-respected research groups.

But, as an investor, I want to know extreme detail about everything -- as to make the best and most informed decision. This article over at Roughly Drafted gives a pretty concise but detailed example between two market scenarios that are sometimes compared but should not be: the PC vs. Mac fight from the late 80s and into the 90s and the iPod vs. Zune fight going on right now between the same two companies -- Apple Inc. (NASDAQ:AAPL) and Microsoft Corp. (NASDAQ:MSFT).

The vivid picture painted here is that numbers and very true (but not all-inclusive) statistics can allow either company (or any company in any industry) to cherry-pick market share and installed base numbers to the benefit of product marketing, but which may only explain a sliver of the overall strategy and success or possible failure of a product (or an entire industry section of products).

Continue reading Market share vs. installed base: which is more important?

Market share vs. installed base: which is more important? originally appeared on BloggingStocks on Tue, 20 Mar 2007 18:57:00 EST. Please see our terms for use of feeds.

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Media player wars: Blow-by-blow on Amazon

Brian White — Thu, 28 Dec 2006 16:35:00 EST

Filed under: From the Boards, Products and Services, Competitive Strategy, Microsoft (MSFT), Apple Inc (AAPL), Amazon.com (AMZN)

What sold more during the recent holiday shopping season: Microsoft's Zune or Apple's iPod? All hands point to the iPod, which again appears poised to be a blowout success for sales during its fifth holiday selling season. Sure, it wasn't the hottest digital music player in 2001, but over five years sales have snowballed.

Amazon.com, Inc. (NASDAQ:AMZN) is a pretty decent yardstick for sales of all kinds of electronic gadgets and products. The numbers the retailer releases are a good indicator of where sales are going to break down everywhere else -- online and off-line.

This year, the world's largest online retailer has already said that the iPod in all its variations has steadily outsold the Zune, although to be fair Zune hasn't had much time to build up a big head of foam like the iPod has over the last half-decade. The iPod's brand alone will be one of the hardest competitive battles ole' Softie has ever faced -- if it resolves to be a longtime competitor that can actually compete with a decent and formidable overall customer experience.

Media player wars: Blow-by-blow on Amazon originally appeared on BloggingStocks on Thu, 28 Dec 2006 16:35:00 EST. Please see our terms for use of feeds.

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The Microsoft Zune starts slow -- where is the audience?

Brian White — Mon, 11 Dec 2006 16:46:00 EST

Filed under: Rumors, Products and Services, Launches, Industry, Consumer Experience, Competitive Strategy, Microsoft (MSFT)

So, what is going on with the Microsoft Zune these days (yawn)? Not much, according to many accounts, though I reserve my harsh words or praise for when Microsoft's sales numbers are released to the public. Even then, I will still hold those words the next quarter's results.

Now, I am not down on Microsoft. As I've said a few times, the marketplace needs to give the Redmond software giant time to market this digital media player, build up the ecosystem and content partners, create marketing buzz (if it can) and *try* to create or take marketshare from Apple's iPod. If Microsoft thinks this will be easy even a year to 18 months from now, it is sorely mistaken. It will take a while for anyone to see whether ole' Softie fails or triumphs with the Zune. The media and the market, on the other hand, want results yesterday and are impatient. Nothing to see here, so let's move ahead.

This take from a recent Cnet article is a nice description of the "un-Zune-ness" that is currently in progress. The wireless WiFi capability of the unit is a major feature being pushed by Microsoft, yet creating that type of ecosystem won't be easy. Why? Because it's device-to-device sharing with limitations that many users -- who put up with the iPod's restrictions -- will scoff at.

I've seen a Zune in person and the device is very nice and looks fantastic (it needs an aluminum housing, though!), but the battle has just begun. Hey, ole' Softie pushed through the dark times with the Xbox -- why not here? Just don't burn money on a fruitless effort -- make it bear fruit. Just not Apples.

[Disclosure: I own MSFT shares as of 12-11-06]

The Microsoft Zune starts slow -- where is the audience? originally appeared on BloggingStocks on Mon, 11 Dec 2006 16:46:00 EST. Please see our terms for use of feeds.

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Microsoft's Zune being outsold at Amazon -- by picture frames

Brian White — Fri, 01 Dec 2006 13:42:00 EST

Filed under: Products and Services, Consumer Experience, Internet, Competitive Strategy, Microsoft (MSFT), Apple Inc (AAPL), Amazon.com (AMZN)

When items like pictures frames and analog turntables are outselling the media-hyped Microsoft Corp.'s (NASDAQ:MSFT) Zune digital music player shortly after its release and during the hottest shopping time of the entire year, something may be amiss, yes?

Sales of Microsoft's Zune digital music device ranked Number 58 on the list of Amazon.com's best-selling electronic devices as of yesterday -- and, trailing other hot gift items such as ... record turntables and digital picture frames. Ouch, Microsoft.

Although the Zune appears to be a very well-designed digital music device (it's a Toshiba unit with Microsoft's design, really), its launch appears to have been too hurried. Despite the Zune's entire environment (player, online store, accessories) announced only at the end of the summer, Microsoft launched it for this holiday season. While Microsoft had to launch in time for the holiday season, it may not have been really ready to compete with the iPod universe. Microsoft cannot dethrone a product like Apple Computer Inc.'s (NASDAQ:AAPL) iPod that easily -- even with the large financial heft Microsoft has.

In fact, six of the Amazon.com Inc.'s (NASDAQ:AMZN) top eight-selling electronic devices were made by Microsoft's rival Apple. Microsoft's Zune, on the other hand, is only a whimper right now at Amazon.com. That is not good news for Microsoft in the midst of the holiday shopping season.

[Disclosure: I own MSFT shares as of 12-1-06]

Microsoft's Zune being outsold at Amazon -- by picture frames originally appeared on BloggingStocks on Fri, 01 Dec 2006 13:42:00 EST. Please see our terms for use of feeds.

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Pink Zune not a myth, but it IS a wild goose chase

Sarah Gilbert — Tue, 28 Nov 2006 02:52:00 EST

Filed under: Products and Services, Consumer Experience, Microsoft (MSFT), eBay (EBAY)

Want a pink Microsoft Zune? You just have to be lucky. Evidently Microsoft Corporation (NASDAQ:MSFT) didn't just give them as gifts, as previously thought, but "seeded" the retail stores with exactly 100 hot pink Zunes in packages that made them look like white Zunes. Sneaky.

If you're not lucky? You can just have a lot of cash. There's at least one pink Zune on sale at eBay -- but you'll have to act fast and, it seems, pay a lot. With some 36 hours left to go on the auction, this pink Zune is already over $400, which puts its estimated market value (based on my sophisticated stab in the dark based on years of eBay buying & selling) somewhere around $800. There's another auction for No. 19 of 100, with a bit more time -- it's only at $300.

Smart Microsoft. The buzz created seems to be catching -- I saw the story on Engadget, but it's already been all over the web.

Pink Zune not a myth, but it IS a wild goose chase originally appeared on BloggingStocks on Tue, 28 Nov 2006 02:52:00 EST. Please see our terms for use of feeds.

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Pink is the new Zune (and orange?)

Sarah Gilbert — Wed, 15 Nov 2006 11:29:00 EST

Filed under: Rumors, Products and Services, Internet, Competitive Strategy, Microsoft (MSFT)

Just when I was getting ready to write a post proclaiming that, thanks to Microsoft's über-geeky-cool "suede"-colored Zune music player, brown is the new pink (a.k.a. is the new white, is the new silver, is the new black), it turns out that pink is the new pink.

Engadget has news that Microsoft has given pink and orange Zunes as gifts (to retailers perhaps?), although the particular shade seems to defy the understated, Northwest-comfort connotations of the other colors (white = "cotton", black = "flannel") with which Microsoft Corporation (NASDAQ:MSFT) has staked its claim. If you ask me this color says "poly-cotton blend knit," not, I don't know, "raw silk."

You know what? I'm sticking to my guns. Brown is the new pink and the new black. I'm predicting that retailers will be delivering a smattering of earth tones in their electronics product mix for 2007. Brown is beautiful, and the brown Zune is why I'm in love with Microsoft these days.

Pink is the new Zune (and orange?) originally appeared on BloggingStocks on Wed, 15 Nov 2006 11:29:00 EST. Please see our terms for use of feeds.

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Zune's social network could mean iPod users switch in droves

Matthew Himler — Wed, 08 Nov 2006 22:00:00 EST

Filed under: Products and Services, Microsoft (MSFT), Apple Inc (AAPL)

Tobias Buckell recently wrote a piece pointing out that a recent ABI Research survey touted that some 58% of iPod users would consider a switch to a Microsoft Corporation (NASDAQ:MSFT) Zune within the next 12 months. One of obvious reasons for this is the larger screen, but Zune's social networking will also clearly send a message to Apple users. Zune's social networking will be based in Zune Marketplace, which is equivalent of iTunes and songs can also be shared via wireless technology on the Zune device.

Today, social networking is vital. Last week I was interviewed by the Globe and one of my key emphasis points was that whether it is blogs, Facebook or MySpace, people are starting to use technology to not only expose themselves, but also to share their views and opinions. I think Microsoft's understanding of this change, which is apparent in Zune, will give the company a differentiating edge.

By no means am I saying that Zune will take over the iPod, because it certainly won't, but it will definitely put forth another trendy alternative -- one that Apple in turn may mimic. Also don't forget about Microsoft's reported $100 million ad campaign for Zune, featuring the tag-line "welcome to the social," which I am sure will have a great impact!

(Listen up Apple, nobody thought the Republicans could be toppled either.)

Zune's social network could mean iPod users switch in droves originally appeared on BloggingStocks on Wed, 08 Nov 2006 22:00:00 EST. Please see our terms for use of feeds.

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Apple after the bell 9/28/2006: Zune announcement buoys Apple stock

Tobias Buckell — Thu, 28 Sep 2006 17:16:00 EST

Filed under: After the Bell, Industry, Competitive Strategy, Apple Inc (AAPL)

Apple ended the day at $77.01, up 60 cents and 0.79%. The big news today was that Microsoft finally set a price point on it's Zune 'iPod Killer' digital player, and the market doesn't seem impressed enough to dock Apple's price. It's quite clear investors don't seem all that worried. In fact Apple's price picked up as the announcement concerning the Zune was trickling out throughout the morning news. If that isn't a sign of how strong iPod brand belief is for the Apple stock future, what is?

The other piece of news for Apple was the announcement of a royalties agreement in the UK that should smooth over differences in digital music downloading over there.

Apple after the bell 9/28/2006: Zune announcement buoys Apple stock originally appeared on BloggingStocks on Thu, 28 Sep 2006 17:16:00 EST. Please see our terms for use of feeds.

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Microsoft to charge $249.99 for Zune digital media player

Brian White — Thu, 28 Sep 2006 09:55:00 EST

Filed under: Rumors, Products and Services, Industry, Internet, Competitive Strategy, Microsoft (MSFT), Apple Inc (AAPL)

This just in -- looks like Microsoft bowed to the wishes of most digital music and media fans, and will release the Zune player with a price tag of right at $250 shortly, as the holiday 2006 shopping season is, gulp, just about here even though we're just at the end of September.

The Zune, which will feature a 30GB hard drive and the ability to share content wirelessly via WiFi wireless, will also be able to sync to and use the Zune music store, where I am anxious to see if the amount of content available on launch will be compelling enough for Microsoft to start making a dent into the Apple iPod universe.

It won't be easy -- Apple has a five-year headstart and even though Microsoft has committed $500 million to the Zune adventure, it remains to be seen if even Microsoft can dent Apple's firm grip on this marketplace. Microsoft does not give up easily and has the deepest pockets of all, but that may or may not make a difference here. Details to follow in 2007 and beyond.

[Disclosure: I own MSFT shares as of 9-28-06]

Microsoft to charge $249.99 for Zune digital media player originally appeared on BloggingStocks on Thu, 28 Sep 2006 09:55:00 EST. Please see our terms for use of feeds.

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Microsoft Zune stands to possibly alienate some customers

Brian White — Mon, 18 Sep 2006 12:33:00 EST

Filed under: Products and Services, Industry, Consumer Experience, Internet, Competitive Strategy, Microsoft (MSFT), Marketing and Advertising

Surely Microsoft Corporation (NASDAQ:MSFT) thought of a few things before launching its new Zune digital media player last week. Sure, the device has a bevy of features that outstrip the rival Apple iPod, but the killer app that it does not have, yet, is simple integration into a full-featured music and media store like Apple's iTunes. It's coming, though: the Zune store, from initial photos, resembles iTunes quite a bit. I'll have to wait and see along with you if the Zune store grows to include a huge selection of music along with television shows and movies over time.

But wait a minute -- isn't there a Microsoft-branded subscription music service that exists all over the globe right now? Sure there is: Microsoft's "PlaysForSure" logo can be found on almost every mainstream MP3 player that is not an iPod these days. The "PlaysForSure" platform is a way to let labels and artists protect their music from illegal sharing but to ensure customers can get their purchased music anytime. It works quite a bit different than iTunes -- a customer pays a monthly fee to get access to unlimited music. But when you cancel the subscription, all your music goes away. Apple's iTunes actually lets the customer purchase and own the music.

So, with such a non-competitive digital music platform out there already that has not made headway against the iPod/iTunes threat will the new Microsoft Zune player be able to use its own "PlaysForSure" platform? Nope -- Microsoft is going the Apple direction and it looks like will make and take complete control over the purchased media experience over the Zune stores much like the tight grip Apple has on the iTunes store. One company, one control, and great content make for great success, as Apple has found out. Can Microsoft do the same thing, while not alienating its "PlaysForSure" (or "unsure", now) customers who have used the previous but non-controlled platform?

In an odd way, Microsoft is ditching its PC business model of "license the software, let everyone else build and fight over the hardware" and is following Apple's tightly-controlled lead of producing the hardware and software themselves -- quite a departure, I might add. But, it's worked for Apple. Will it work for Microsoft?

Microsoft Zune stands to possibly alienate some customers originally appeared on BloggingStocks on Mon, 18 Sep 2006 12:33:00 EST. Please see our terms for use of feeds.

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Investing lessons, the Microsoft way: Be a pirate!

Vince Chan — Sun, 17 Sep 2006 22:42:00 EST

Filed under: Products and Services, Rants and Raves, Competitive Strategy, Microsoft (MSFT)

If developing the next profitable business were anything like treasure hunting, then Microsoft is the very picture of the digital buccaneer. The company always profited from the hard work of others (not that being a pirate is easy!). Microsoft watches with keen interest while others blaze trails and forge paths into unknown lands. When these companies discover treasure, Microsoft lays ambush and relieve them of their bounty during their trek across the ocean of marketing. Before you make me jump off the plank for these metaphors, would you be willing to hear me out? You may also gain some investing lessons as I dissect the Microsoft Motto!

I will forever be more fascinated with how a business operates than with how its stock price fluctuates. That's why I'm a lousy technical analyst and need to rely on value investing principles. Let's think back to Microsoft's humble beginnings when they decided to buy a disk operating system and brand it as its own - "MS-DOS". Hmmm... that Windows 3.1 seemed awfully familiar to a Mac OS in development! Netscape suffered the same fate when Microsoft bought Internet Explorer (IE) from Spyglass. IE was re-developed and implanted successfully through its Windows integration.

Has Microsoft veered from tradition? X-Box's recent success shows that the pirating spirit is alive and well. Don't be the first to develop a product and train consumers that they need it! Instead of focusing on the early-adopters, target your version of an existing product to the mass market and distribute, distribute, distribute! This may be a reason not to doubt Microsoft's timing and decision to forge into portable digital audio players with Zune. Microsoft certainly heard the criticisms that the company simply rebranded a Toshiba audio player and made it the Bellevue Buccaneer's own. So what? I'm wondering how that's different from the company's past track record? If history does repeat, where should I be standing?

Continue reading Investing lessons, the Microsoft way: Be a pirate!

Investing lessons, the Microsoft way: Be a pirate! originally appeared on BloggingStocks on Sun, 17 Sep 2006 22:42:00 EST. Please see our terms for use of feeds.

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Microsoft after the bell 09-14-06: singing a new Zune

Sarah Gilbert — Thu, 14 Sep 2006 19:39:00 EST

Filed under: After the Bell, Products and Services, Launches, Microsoft (MSFT)

Everyone's singing a new Zune today following the unveiling of Microsoft's iPod competitor (née killer), and that Zune is brown. While no one seemed quite sure, the reaction was generally positive; watchers thought the music sharing option was rather brilliant, and the interface intuitive and simple.

The question on everyone's minds is, still, how much? Guesses tend to end up around $299.

Microsoft investors seemed pleased, and drove the stock up 35 cents, or 1.35%, to a comfortable $26.33.

Microsoft after the bell 09-14-06: singing a new Zune originally appeared on BloggingStocks on Thu, 14 Sep 2006 19:39:00 EST. Please see our terms for use of feeds.

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The trick to Microsoft's Zune success: Zune Store

Brian White — Thu, 14 Sep 2006 14:43:00 EST

Filed under: Products and Services, Launches, Industry, Consumer Experience, Internet, Competitive Strategy, Microsoft (MSFT), Apple Inc (AAPL)

With of the Microsoft Zune digital media player, the questions that will coming soon will be the big hitters: How much will the 30GB Zune (the only capacity announced at this time) cost? And how will the Zune store work with downloadable media? Although the has been speculated on for quite some time lately (leaks galore), the *official* announcement from Microsoft was today. The Zune will be available in WiFi-flavored colors , black and white, with the single 30GB capacity (enough for most people I would think -- YMMV).

We still do not know how much it will cost. My guess? $299.The *real* question is how Microsoft's Zune music store (simply titled "Zune") will compare to Apple's iTunes music store. Not only is iTunes very easy to use, by most accounts; it's the source of all the content comes for millions of iPod owners. Music titles, television shows and now, full-length movies, are available at iTunes. It's the mecca of online content in the audio and video realm -- but will the Zune store be comparable? That is key, even with the Zune player featuring more features than any iPod, including WiFi wireless networking, an FM tuner (who listens to FM these days?) and a very, um, unique design (I guess).

The design is nothing earth-shattering (from first glance), but definitely is a break from kludginess in grand Apple fashion. If the Zune store can be as easy to use as iTunes, features -- over time -- an impressive and flexible array of content for Zune owners, and if it evolves to have different kinds of video and audio media available similar to iTunes, the Zune/Zune Store world may become a decent competitor to the iPod/iTunes universe. It'll take time, but Microsoft has a good start here. The bar has already been set by Apple, however.

[Disclosure: I own MSFT shares as of 9-14-06]

The trick to Microsoft's Zune success: Zune Store originally appeared on BloggingStocks on Thu, 14 Sep 2006 14:43:00 EST. Please see our terms for use of feeds.

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Microsoft Zune: brown and beautiful (but how much?)

Sarah Gilbert — Thu, 14 Sep 2006 12:49:00 EST

Filed under: Good news, Products and Services, Launches, Industry, Consumer Experience, Internet, Competitive Strategy, Microsoft (MSFT), Apple Inc (AAPL)

Microsoft Corporation (NASDAQ:MSFT) today unveiled its Zune digital media player, with no details as to launch date or pricing (my guess: one pack will be $149, another will be $249, and still another will bump up against $400). Immediately my reaction was: brown?!?

Yep, not only is Microsoft filling the "white" and "black" market segments, just like iPod and about every other digital music player manufacturer out there, but the company has decided to enter the little-trafficked "brown" category. I never thought I'd say this (I never even knew it might be something I could say), but: I want a brown Zune! It's almost genius in its geekiness.

Microsoft announced that the Zune would be pre-loaded with music from labels like EMI Music's Astralwerks Records and Virgin Records, Quango Music Group, and V2/Artemis Records, and laid out a detailed description of the "Packs" which would be available (Car, Home A/V, and Travel). Microsoft will surely be rushing to get the player in stores by November for holiday shopping.

And make sure you pack Portland stores with lots of brown, Mr. Ballmer! [Update: Engadget has all the technogeek specs for those of you who like that sort of thing.]

Microsoft Zune: brown and beautiful (but how much?) originally appeared on BloggingStocks on Thu, 14 Sep 2006 12:49:00 EST. Please see our terms for use of feeds.

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Microsoft's Zune digital music player already lining up content partners

Brian White — Fri, 18 Aug 2006 11:20:00 EST

Filed under: Good news, Products and Services, Industry, Consumer Experience, Internet, Competitive Strategy, Microsoft (MSFT)

Microsoft's Zune digital music/media player may soon receive its first content partner. EMI Music has agreed to preload some music onto the just-announced digital media player as Microsoft starts to throw hundreds of millions of dollars at Apple's iPod world domination. Can Microsoft even make a dent where *everyone* else has failed? It will be throwing more money at the problem than anyone else ever has, but it remains to be seen whether the world's largest software company can integrate an excellently-designed piece of hardware into a complete and immersive consumer ecosystem-based experience.

Let's say that again, all-ye-iPod-faithful: a complete and immersive consumer ecosystem-based experience. That rather obnoxious description precisely describes why Apple has been so incredibly successful with the iPod universe. No other manufacturer has even come close, although some hardware players have just as good as a design -- but the "experience" is just not there.

Microsoft, however, is partially abandoning the "PlaysForSure" mish-mash of hardware/software experiences and is developing an all-new integrative solution for use with the Zune -- which is knows was a top requirement if the iPod is to be attacked. EMI Music, then, is the first commercial music company to agree with Microsoft to pre-load protected and DRM-ed songs on the Zune once it ships to consumers. Will it be the last? Doubtful. But, with the Zune under pressure for a holiday-season launch -- meaning it was in conception in design way before its announcement, expect more content owners to start partnering with ole' softie soon.

[Disclosure: I own MSFT shares as of 8-18-06]

Brian White has worked in various executive positions in technology and telecommunications and now focuses on editing and writing.

Microsoft's Zune digital music player already lining up content partners originally appeared on BloggingStocks on Fri, 18 Aug 2006 11:20:00 EST. Please see our terms for use of feeds.

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Microsoft iPod competitor, the Zune, to retail for $299?

Brian White — Fri, 11 Aug 2006 15:48:00 EST

Filed under: Rumors, Products and Services, Industry, Consumer Experience, Blogs, Competitive Strategy, Microsoft (MSFT), Apple Inc (AAPL)

Microsoft's $500 million answer to the runaway success of Apple's iPod, the Zune, may cost $299 when released, according to Engadget. With the capabilities that the Zune reportedly will offer -- WiFi wireless capability, audio and video and a Zune content system that purports to be like Apple's iTunes, the $299 price point is perfect for the Zune I believe. Apple's 30-gigabyte iPod with video starts at the same price point now. Herein lies the rub, of which I've covered numerous times: will features and price point alone sway the customer from the branded-to-the-max iPod to the Zune?

If Microsoft can convince customers to do this in a hip, energetic way like Apple has successfully done, the Zune may start out as a good success and build from there. The Zune Experience (as I've been calling it) must build in the hardware player (the Zune itself), the content delivery system (aka, iTunes) and the entire other ecosystem pieces like the massive accessory universe that surrounds the iPod.

But the initial customer question comes down to price, and $299 should fit that bill. Although I don't believe that the various iPods are bought on price, far from it, the Zune might be bought on price, just like every other non-iPod music (and video) player is these days. Microsoft has a huge challenge here to market the Zune correctly -- taking cues from Apple -- and tell customers that the Zune is a worthy, non-commodity alternative to the iPod. With Microsoft's marketing history, this seems unlikely. But, then again, it's also reported that the marketing team that has been so successful with designing and marketing the xbox and xbox 360 has been charged with doing the same for the Zune. J. Allard -- your plate just became fuller.

Brian White has worked in various executive positions in technology and telecommunications and now focuses on editing and writing.

Microsoft iPod competitor, the Zune, to retail for $299? originally appeared on BloggingStocks on Fri, 11 Aug 2006 15:48:00 EST. Please see our terms for use of feeds.

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