BusinessWeek writer: Apple needs to firmly squelch Real’s Harmony

“As of July 27, consumers can go to Real’s Web site and download software, dubbed Harmony, that lets them play songs purchased at Real’s download store on any portable player they choose — including the iPod. What’s more, Real is in talks to license Harmony to other online stores that might also want to sell to iPod users — without Apple’s approval,” Peter Burrows writes for BusinessWeek.

“Apple CEO Steven P. Jobs should clearly and firmly squelch Real’s attempt to infiltrate Apple’s music empire. GartnerG2 analyst Mike McGuire sums it up: ‘At some point, Apple may decide to license [its iPod technology] to others. But they should do it for good business reasons, not because a rival issues a press release or some beta software.’ Apple isn’t commenting on Real’s move yet. But it’s almost certainly exploring the possibility of a copyright lawsuit. And that’s not the only option. Experts say it could require iPod owners to download a firmware upgrade the next time they try to buy a song from iTunes that would render Harmony useless — much as a security patch resolves a computer virus,” Burrows writes.

“If Jobs’s lawyers tell him it’s legally justified, the CEO might even consider an even more radical way of making his point: loudly inform iPod owners that Apple will no longer honor their warranty if they buy songs from Real or other rival online music stores,” Burrows writes. “Such a move might temporarily cast Jobs as the Darth Vader of interoperability to industry watchers. But in the long run, it’s in Apple’s best interest.”

Full article here.

MacDailyNews Take: We do not believe that Apple was caught off-guard with Real’s move and they have a number of options. We’ll just have to wait and see what Steve Jobs’ NeXT move will be.

68 Comments

  1. Get real! — Apple voiding warranties because they use other than itms music — if Apple did that then screw them — I would gladly void my warranty. I think Mr. Burrows is really a mole to suggest outrageous strategies that would drive away users from ipods in droves. The way I figure is that I bought it, therefore I’ll play what I damn well please on it.

  2. don’t see the problem here. apple makes more out of ipods than selling tunes so wouldn’t necessarily care where the music comes from (are they trying to stop people ripping cds or storing other audio?)… you can bet that buying music from real will be a pretty uninspiring procedure anyway compared with itms. in the end it’s a matter of principle and whether apple feels that real needs to kicked in the pants. if i was steve jobs i’d probably spend more time at the beach anyway…

  3. if Apple released iTunes 4.6.1 – that couldn’t possibly solve the problem w/ the iPod-Sony-Harmony problem. In fact, the whole Sony-Harmony problem is it cuts iTunes out of the loop. (For some people that might not be a bad thing – but in Apple’s case, it could conceivably be a bad thing).

    A firmware update is the only true way Apple can solve this – without legal action.

  4. 1) I want to be able to buy a song wherever I want to.
    2) It looks like Real is going to offer real quality (192 vs 128)
    3) I refuse to buy a song from a company who disrespects the free market. (propriety standards)
    4) If there will be a lawsuit, Apple deserves to loose it.
    5) I love Apple, except for FairPlay.

  5. If some foolish iPod owner starts buying songs from Real and then Apple does a firmware update so the songs don’t work – who will the iPod owner be angry with? Real or Apple? Unfortunately, I think they’ll be angry with Apple for limiting choice. Of course, I can’t see many iPod owners actually going to Real so perhaps it is a mute point?

  6. I think that if Apple announced something along the lines of “downloading music from other online services other than iTunes might well have a detrimental effect on Apple’s FairPlay DRM system, so if problems are encountered as a result of this activity, Apple cannot and will not be held responsible for any malfunction these actions might cause” iPod users will probably shy away from using other providers like Real, especially if there is some possible chance of damage or the iPod going wrong etc.

    We’ll see…

  7. Little hope for this one. First it has to work seamlessly with iTunes and I doubt if it does. Probably going to have to use Real’s iTunes copy and reload all your CDs. Since they have knocked this together in the past few MONTHS it is sure to be something that is a dog in comparison to iTunes. Real should have spent the time, money and effort to produce a player that was better than the iPod, but then there is fat chance of that.

  8. Apple’s smart move is to “improve” FairPlay to be a better and more secure DRM. This new version will recognize and play the old FairPlay version just fine, but has “unreliable” results if any other clone of FairPlay is being used.

    This action will put the blame on the quality of Real’s “cheap knock-off” version, while at the same time people will see Apple continuing to innovate with quality.

  9. Matthew24. . .”2) It looks like Real is going to offer real quality (192 vs 128)”
    I hardly think there is a discernible difference between 192 bitrate and a 128 bitrate, especially on earbuds, laptop speakers, and computer speakers. Now if the encoding were mathematically lossless, Real would have a true selling point not just some numbers to fool people into thinking that “a little higher number=a lot better sound”

  10. Actually Steve can just give the DOJ a call and let them handle it. This is in violation of the Millenium Digital Rights Act ( or whatever it’s called). If they prosecute individuals for violatios such as these than they should go after Real and the developers that wrote the code. Before you flame me I am totaly against the MDRA and believe that it violates as many constitutional rights as the Patriot Act but it is the law and they have prosecuted poeple for it before.

  11. I think we are misisng the point here. Apple stands to make a lot of money by licensing Fairplay. It’s not just about selling more iPods. There is more at stake. If other companies backwards engineer there own software to work with the iPod then Apple could stand to lose a lot of money from licensing. .

    I would love to be able to shop wherever I want and play it on the my ipod. The fact is though, the iTMS is by far the best. Apple needs to do what they can to shut down Harmony as fast as they can. Eventually they will license fairplay and we can shop where we want.

    Oh, and I would be willing to bet that most people can’t hear the difference between 128 and 192. Just because the number is higher doesn’t mean your ears can actually hear the difference.

  12. What’s the big deal? Even now if I want to purchase music, I first check to see if it’s available on the iTunes Music Store. If not, I check somewhere else. If I get really desparate, I pirate the music.

    If Real offers music compatible with my iPod, I’ll do the same, check with Apple first, and Real second.

  13. “This is in violation of the Millenium Digital Rights Act ( or whatever it’s called).”

    Haha. Not only are wrong, you don’t even know the name of the law. Good going zealot!

    “Oh, and I would be willing to bet that most people can’t hear the difference between 128 and 192. Just because the number is higher doesn’t mean your ears can actually hear the difference.”

    I’d be willing to bet that you’re clueless about audio codecs and don’t know what ABX testing is.

  14. > Apple stands to make a lot of money by licensing Fairplay.

    Not if companies realise that they don’t need a license. FairPlay is essentially MD5 and AES, which are in the public domain. No license needed.

  15. “I hardly think there is a discernible difference between 192 bitrate and a 128 bitrate, especially on earbuds, laptop speakers, and computer speakers.”

    True. Fortunately, I have a high-end stereo and Airport Extreme. Maybe I’ll try encoding a CD at 192 and see if I can tell the difference.

  16. “iPod technology”. This writer needs to get his information correct. Fairplay is “encoding” technology. Heck, Apple didn’t even design the tech that runs the iPod. PortalPlayer did.

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