Apple’s iTunes Music Store threatens Microsoft; AAC vs. WMA

In their article for ZDNet today, Joe Wilcox and Evan Hansen take a look at how, “Apple’s tunes could threaten Microsoft.

“While some record labels have called the music service an ‘experiment,’ analysts see huge potential for Apple to stall or potentially derail Microsoft’s own digital media strategy if, as expected, it makes the music service available to Windows users as well as those running Macs,” Wilcox and Hansen report.

“‘There’s a possibility that Apple could do an end run around Microsoft?(particularly) if Apple makes the service available to Windows users,’ said IDC analyst Roger Kay,” according to ZDNet.

“The entertainment industry is loathe to lock itself to proprietary formats that might one day hold companies hostage to a single technology provider–particularly a Microsoft. ‘There is clearly an incentive to look at these standard models rather than locking themselves into a relationship with a company that has reputation for being opportunistic,’ said Technology Business Research analyst Lindy Lesperance,” ZDNet explains.

“Microsoft is banking heavily on anti-copying technology as an incentive to sell Windows Media to piracy-fearing record labels and studios–something that MPEG is only beginning to address. The software giant’s sales pitch includes offering content creators free use on CDs and DVDs of digital rights management (DRM) technology that could help curb rampant file trading. The DRM works only with Microsoft’s proprietary Windows Media file formats. ‘At this point we see all the momentum is behind us in this world,’ said David Caulton, group product manager over Microsoft’s Windows Digital Media division. ‘The whole ecosystem is humming,’ he continued. ‘Just because Apple comes out with a service with AAC isn’t going to change things overnight. The idea the service would drive AAC adoption, ‘that’s certainly something we would disagree’ with.”

Full article here.