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Microsoft's iPod Little Threat To Apple

  • Wired, Monday, July 24, 2006 11:45 AM
Microsoft is readying its answer to Apple's iPod, which will reportedly be called "Zune" and will contain the following features: Wi-Fi connectivity, video playback, Xbox integration, and a mobile community feature for enthusiasts to interact with each other. Songs will be offered at a variety of download and subscription prices, rather than the flat $1 fee Apple charges on iTunes. In its bid to overtake Apple at the top of the online music business, Microsoft has a few obstacles to overcome. First, millions of consumers own iPods, which means they're also iTunes members. Second, thousands are waiting to upgrade their existing iPods to the next sleek new version. They will need a compelling reason to leave, and given Microsoft's "typically tone deaf approach to usability," CNET says, this won't happen unless they get the design of the device and the service absolutely right. Since Microsoft appears unwilling to ditch Digital Rights Management (proprietary music protection software) altogether, a position recently taken by Yahoo Music, updates to existing DRM structures would likely cause serious compatibility problems between the player and non-Microsoft music store partners, like Real and Napster. That compatibility is the only big edge Microsoft's product would have over the next iteration of the iPod, which will also have Wi-Fi and will function like a wireless device.

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