“A pitched battle for control of the music-downloading business is raging among Apple, Microsoft, RealNetworks, and Sony. Their weapons: software used to buy and listen to music downloads on computers and portable devices. Their goal: to become the industry standard for how music and movie downloads are delivered. The winner will command a lion’s share of the thriving market for digital content and devices. Here’s an explainer on digital media formats,” Heather Green writes for BusinessWeek.
Is there a difference between the music sold at different music sites?
No, the music is the same. But each song you buy off the Net comes wrapped in two important pieces of software: copy-protection software to prevent piracy and compression technology so it can be downloaded quickly. This combination is called a format. Apple has a format that combines its FairPlay copy-protection software with compression technology called AAC. To play downloaded songs that are encoded in a format, a computer or portable device must have specially designed audio-player software. This is where it gets tricky. Four companies are backing competing formats. Besides Apple’s, there’s Microsoft’s WMA, which is being used by Wal-Mart Stores, Napster, and Musicmatch. Sony and RealNetworks each have their own formats.
Is Microsoft going to win, like always?
Not necessarily. Microsoft scares executives, even powerful record bigwigs. They’re wary of being beholden to the software giant, so they’re working with many different tech companies. RealNetworks is the weakest player in the bunch, and Sony is a wild card because it’s late in selling downloads. Most experts think the battle will play out between Microsoft and Apple. Apple has the early advantage, with 70% of the music-download market and 25% of the music-player market. Still, Microsoft’s WMA works with 60 different music devices and a handful of download services. So Apple will have to be innovative if it doesn’t want to be marginalized once again.
Full article here.
The war’s already over dumbass. Now just taking names.
“Apple has the early advantage, with 70% of the music-download market and 25% of the music-player market.”
Amazing. Apple’s market share has dropped from 31% to 25% in just two weeks.
AB,
That just says, for every 75 good products sold, there are 25 other not-so-good products are sold.
In case of PC market share, for every 3 good products sold, 97 other not-so-good ones are sold.
“Will there end up being one standard for digital music?”
May be not. Eventually, they may come up with open standard for transfering license between different DRM, so a software can convert WMA to AAC/Fairplay. The record companies probably have to force them to come up with the solution.
“So Apple will have to be innovative if it doesn’t want to be marginalized once again.”
innovative…. what an idea..
umm id like to reiterate the dumbass posted by 1hunglo there is a difference in the music bought from each store. u said it yourself the copy protection the format the number of times your allowed to burn it weather you own it or not and most importantly bit rate if the music shoundlike shit no ones gonna buy it! buyer beware!
If Apple loses this war to something like WMA, it will just help prove once again that the average consumer is a total MORON.
The war isn’t over, yet. Digital music is going to be a HUGE industry, and Apple’s current lion’s share is only a gnat’s share of the market five years from now. Apple not only has to defend it’s current share, but must plan to hold a share of a much larger pie down the road.
I don’t claim to know how they’ll do that, but I think failure is still possible.
You hit it on the head, Lucius. Apple has a big start on a currently rather small market. The key is for Apple to continue to grow along with the market. While I am a big Apple fan, there are no guarantees that Apple iTMS will come out on top over the next five to ten years. It appears to me that the current Apple management understands these issues very well.
Inno-what? Huh? What is that? I’m not familiar with the word. Is it like winnovate? Where I buy or bully MS into a dominate position? Oh yeah, thats probably it, just a typo….
“The record companies probably have to force them to come up with the solution.”
Not likely. The record companies would be more than happy to sell you a song that you can play on your computer, one that you can send wirelessly to a home stereo, one that can be burned onto a disc that can only be played in a car audo system (and only YOUR car audio system), one that can be burned to a portable music player, one that can be put on a disc to use with only YOUR portable CD player, etc., etc., etc.
As far as the music industry is concerned, the less compatibility and portability that results from many different formats, the better.
Something I don’t get, it’s NOT THAT HARD to convert to different formats. MP3 is by far the standard in terms of digital music and the iPod supports it.
This is what these”analysts” don’t seem to get: Most people know it’s easy to convert DRM’d music to MP3. But like jury nullification, it’s something you don’t talk about, you just do it. Shhh.
before you bash the analysts because you think they are morons, keep this in mind. they are analyzing the technology and products of these companies and its impact on the MARKETS. when you compare apples to apples, and oranges to oranges, all analysts will agree that Apple and its technology and products rule the roost – hands down. but Microsoft rules the market – hands down.
when a company is public – like Apple is, the Market is CRITICAL. obviously 95% of the posters here dont get that and bash the analysts for their perceived slights against Apple.
the media has been giving Apple TREMENDOUS positive coverage the past year plus – and i remember not too long ago the same media was prophesying Apple’s death march. so give the media and the analysts due credit to being MORE objective towards Apple than they have been in the past.
Can Apple loose this battle? HELL YES. look at the idiots who flock to the inferior platform, but those same idiots are driving 97% of the market. M$ is worth HUNDREDS OF BILLIONS where APPLE is worth maybe 10 billion or so. is Apple better? HELL YES, but MS has the market and money.
that’s reality. i dont like it, but there it is.
What about the qualitydifferende between AAC (Apple) and WMA (Micro$oft)…
The problem as I see it is that Apple’s solution and most of the others don’t yet work on a wide variety of end devices (my Palmpilot, a car radio, etc.). Until I know that the copy I buy can be used everywhere I want to use it, I’m hesitant to invest in music online. Licensing is one way Apple can ensure that their standard work across all devices. They can start with a Palm-iTunes player…
You want to download music files to a car radio? You’ll be waiting a long time.
Yes, there are car stereo components that play MP3s from CD. That’s not the same thing by a long chalk.
Heather green is hot!