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On the Fej

More on the Fej than you care to be. More on the Fej than you care to know.

Friday, June 10, 2005

Apple vs. Microsoft. Yawn.

So, Microsoft opened an online music store, the MSN Music Service, last September. Yeah - I didn't know about it either. It was/is rather similar to the Apple iTunes music store, selling songs for $.99. Just like Apple, MSN's songs are encoded in a proprietary format (in this case WMA files). Ostensibly, the reason for the special format is to help protect the artists; it limits your ability to make illegal copies of the song file. The real reason for this is to lock you into their operating system and player. Of course Apple does this with the ACC file format, but not surprisingly, I'm OK with this practice. Whatever - that's another story.

So, Microsoft opened an online music store last September. Well, let's say it hasn't had a ridiculous level of success, since in the meantime Apple has grown to a high of 82% market share of the online music store market. Meanwhile other services have cropped up based on a subscription model, ala Napster. Sure, all of these are snipping at Apple, though none are making a dent yet.

Here's the new news: Microsoft has abandoned its initial price-per-song model for a subscription model. In an attempt to win back Windows users, Microsoft is even thought to be planning an offer to let new users download Microsoft versions of songs previously downloaded from the iTunes store. You might say it's a direct attack. So let me get this straight: MS goes from copying Apple to copying Napster and they think they're going to win? Even if they aren't planning on winning, they think they'll carve out enough market share to be viable? And even if they aren't planning on carving out enough market share to be viable, do they think it will be perceived as cool? Even if Apple and the iPod is becoming slightly less cool, it is firmly entrenched.

And sure somebody out the is saying: But Fej, remember the Sony Walkman? It's dead! Apple and the iPod's days are numbered!

Yeah, I remember the Walkman. I had one. But here's the thing. I used it until a new technology came around: The compact disc. So here's my prediction. When the next music format comes along, Apple might temporarily be on the sidelines. But Microsoft will still be snipping at the heels of innovation.

But until then, my iPod is cool.

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