“Those who argue that legal downloading is just as good as file swapping, for a small fee, face an uncomfortable reality: Concerns over compatibility among the various players and digital formats — known as ‘interoperability’ — seem to be increasing,” David McGuire writes for BizReport.
MacDailyNews Take: Concerns “seem” to be increasing? Consumers’ concerns? We’d like some hard data and facts backing this up, please. These ‘concerns’ are almost certainly increasing for every business trying to compete with Apple.
“For example, Napster to Go users are told that for $5 a month extra, they can take their downloaded sounds wherever they want to go — unless their portable player is an iPod, because iPods aren’t compatible with the Microsoft software that Napster uses to protect the playlists,” McGuire writes.
MacDailyNews Take: So what?
“With each player and service using slightly different file formats, standards and security tools, users may have less freedom to use their music than they think. IPod owners who buy music from iTunes might get a shock if they buy new devices from Creative Labs or Dell and try to pull their iTunes songs onto them,” McGuire writes.
MacDailyNews Take: Pod owners who would buy a Creative or Dell device (all three of them) would likely get bigger shocks for many other reasons than trying to put iTunes Music Store-purchased songs on them.
“‘That is something that we struggle with and it is a definite obstacle. I hope at some point digital music will be simpler in that respect, but I think that’s still a long way off,’ Napster’s Harris said. Wolpert [RealNetworks’ Rhapsody’s chief strategy officer] called interoperability concerns ‘potentially the biggest obstacle to mass consumer adoption,'” McGuire writes.
MacDailyNews Take: It’s an obstacle for Napster and a concern for RealNetworks, not consumers. Consumers have already made and continue to make their choice in ever-increasing numbers. Napster et al. just don’t like the choice consumers have made.
“Sony’s Hesse and EMI’s Cohen say that they may need to lean on the retailers to make their services more interoperable. ‘I think we need to make significant strides in 2005 to improve that situation,’ Hesse said,” McGuire writes.
MacDailyNews Take: Why? For whose benefit?
“The company that did the most to get legal downloading off the ground may also be the lead weight on a market whose consumers like to shift among different players and services, taking their libraries with them,’ McGuire writes.
MacDailyNews Take: “Consumers like to shift among different players and services?” What percentage of consumers? Again, we’d like some actual proof of this, please. We can just as easily write that consumers like quality players that come in a wide range of sizes and prices that work seamlessly with an online music service that offers a large library with consistent prices. At least we’d have iPod+iTunes market share and unit sales to back us up.
“In addition to shutting out Napster, Apple also prompts iPod owners to use iTunes as their PC media player and online music store, making it difficult or even impossible to buy tracks from other retailers and move them directly to their devices,” McGuire writes.
MacDailyNews Take: Awww, ain’t that just too bad?
McGuire writes, “About 90 percent of the hard-drive-based music players sold in the United States are iPods, according to Piper Jaffray analyst Gene Munster. ‘Apple has opted to keep iPod proprietary and not let people who own them choose how they want to get digital music,’ [Napster’s] Harris said.”
MacDailyNews Take: Waa, waa, waa! Then make a better, more compelling player and music store combination and stop whining like a little girl, Mr. Harris.
McGuire writes, “Representatives for Apple reached by telephone and e-mail repeatedly declined to be interviewed for this story. While its adherence to a proprietary model may eventually become an obstacle to widespread adoption, Apple’s strategy is sound business and unlikely to change any time soon, said Gartner G2 analyst Mike McGuire. ‘In a perfect world it would all be interoperable, and everybody would make money, but in a market-driven world, is there a business case to be made for making the iPod interoperable? I don’t know,’ McGuire said. Apple chief Steve Jobs ‘is doing what any business would do,’ he added.”
MacDailyNews Take: Finally, a voice of reason appears.
Full article here.
MacDailyNews Take: The amount of tears coming from the also-rans as Apple whips them unmercifully could fill Lake Mead by now. By the way, the de facto standard for digital online music files is Apple’s protected MPEG-4 Audio (.m4p).
Related MacDailyNews articles:
Dell CEO: Apple can’t just have one product and then say they’re the innovative leader of the world – February 22, 2005
Napster CEO Gorog: ‘it’s stupid to buy an iPod’ – February 10, 2005
Report: Napster faces uphill fight to gain share, Apple prepared to run iTunes at a loss – February 10, 2005
Napster’s ‘iPodlessness’ doesn’t bode well for its future – February 10, 2005
$10,000 to fill an iPod? Napster’s going to end up with egg on their face – February 04, 2005
Why ‘Napster To Go’ will flop – February 03, 2005
Napster CEO: We’re ‘the biggest brand in digital music, much more exciting than Apple’s iTunes’ – February 03, 2005
BusinessWeek: Rather than dismissing Apple products as fads, Dell should try starting a few – January 31, 2005
RealNetworks’ CEO Rob Glaser grabs 3 of top 10 spots on ‘Dumbest Moments in Business 2005’ list – January 31, 2005
Dismissive Dell CEO not impressed with Apple Mac mini, calls iPod a ‘one-product wonder’ and a ‘fad’ – January 17, 2005
Creative CEO: Apple iPod shuffle ‘a big let-down, worse than the cheapest Chinese player’ – January 12, 2005
Creative declares ‘war’ on Apple iPod, shoots for 40% market share of MP3 players – December 21, 2004
Creative Technology declares ‘MP3 War’ against market-dominating Apple iPod – November 17, 2004
Bono-Glaser photo caption contest now open – October 25, 2004
Real’s CEO Glaser: ‘Harmony’ hack legal, Mac lovers are very sensitive to Apple criticism, and more – September 14, 2004
Analyst: Rob Glaser’s ill-advised war against Apple ‘is going to bite RealNetworks on the ass’ – August 30, 2004
RealNetwork’s CEO Glaser crashes Apple’s music party – July 30, 2004
Real CEO Glaser: Steve Jobs’ comments on Real ‘not succeeding’ are ‘ridiculously humorous’ – April 29, 2004
NY Times: Real CEO Glaser was close to having ‘iPod’ before Apple, but let it ‘slip through his fingers – April 24, 2004
Real’s CEO Glaser: Apple’s iPod/iTunes combo ‘threatens to turn off consumers’ – April 20, 2004
Jobs to Glaser: go pound sand – April 16, 2004
Real CEO Glaser begs Apple to make iPod play nice with other music services – March 24, 2004
Real CEO Glaser: ‘iTunes is only going to be used for playing songs you bought using the iTunes store – January 16, 2004
Funny how much whining there is when Apple’s minority situation is reversed. There’s a lot to learn from this situation, not just how well Mac fans have dealt with being in a minority position in the past compared to how others are dealing with it now that Apple’s in the lead, but also how Apple and it’s fan base is reacting to being in the lead. Not that different from Microsoft and its asoorted fanbois. That’s too bad – I thought we Mac users had more class.
Personally, it doesn’t matter to me what format the ITMS delivers it’s music in. Far as I know, AAC is an open standard, and there’s nothing stopping Napster from delivering its files in that format. Or developing its own iTunes-compatible software. The real problem is they can’t create anything anywhere near the quality of the ITMS/iTunes/iPod combination, so they’re trying to spread some FUD around. No biggie – the cool kids already know the best choice, and unless Apple drops the ball in a major way, you’ll still look like a dork walking around your high school with an iRiver.
“Right now they maybe be the best, but probably not forever. Do I want to be forced to always buy an ipod to play the music that I bought?”
I’m not sure where this falls under the license for iTMS songs, but we all know that you can burn a CD of songs purchased on iTMS and those can be ripped into any format. True, it is degraded in sound quality.
CD/DVD analogy: You address this, but in this case, the issue isn’t interoperability, it’s convenience. I can’t deny that it’s still an issue, but the pragmatic issue is that there is a solution. I do side with you, for largely the same reasons, that Fairplay should eventually be licensed. It’s still pretty early in the game for that, but 2-3 years from now, it shouldn’t be an issue.
Another issue this raises is copyright law in this area and how it may need to be tweaked. The issue with burning iTMS tracks to CD, then shifting them probably does violate the license, but it should fall under fair use. The rights holders want to keep this in place for several reasons, only one of which is related to protecting their copyright (piracy). I understand the reason to use DRM to stop piracy (even though circumvention methods will always exist) – it’s their ability to use it as leverage to charge you multiple times that doesn’t seem like the desired result of the intellectual property laws.
Bob,
You are right. The Playstation analogy is a good one and that’s why I said “most (but not all)”. I just thought some of the other analogies were pretty ridiculous. And in the case of Apple and music, technically what they are doing is “fair” and it makes sense for them from a business standpoint, but it hurts the consumer. I’m not really complaining too much about it because I buy all my songs either from iTunes or physical CD’s, but it would be much easier if there was just one standard. It would be nice if there was just one standard where no one had to worry about paying for licensing or worry about supporting different formats just so that someone can listen to some music. Everyone wants to make money from the music that artists create and DRM is just another way for companies to make even more money, and that’s pretty sad. And in this case, I think Apple is clearly looking out for themself instead of the consumer.
Ok, i guess i may have sounded a little harsh in implying that Apple is fueled by greed instead of concern for the consumer, but I do think they need to eventually change their stance on Fairplay. Regardless of who’s selling the music, people are still going to buy the iPod and probably still use iTunes, so Apple has little to worry about in terms of sales and profit. It would just be a good move for Apple to allow other choices even if people don’t choose them. That way it would show that Apple wants what’s best for the consumer, even if it doesn’t mean their product.
Most of the replies to this article seem to overlook one essential fact of life in the music business. … The RIAA (boo – hiss) actually has an interest in keeping interoperability to a minimum. From the music industry perspective, anything that makes it easier to transfer music from one piece of hardware to another – or from one medium to another – means less profit.
It isn’t just that Apple has opted to keep the iPod and iTunes proprietary ( not to mention Sony’s equally proprietary format ) – The music industry has tried feverishly to squelch the consumer’s ability to copy music since the first audiocassette. Cassettes were first marketed in the late sixties for voice recording only. When high quality cassettes emerged the music industry introduced the non recordable 8-track tape as an alternative for selling music on the premise that cassettes would be less appealing due to the convenience of 8-tracks for playing specific songs with less fast forward or rewinding.
Likewise – DAT (digital audio tape) was kept off the market as a consumer product before CDs. What we are seeing now is the ongoing battles between and within the computer industry and the music industry to control competing markets for the same product.
It really isn’t up to one company.
I wouldn’t be surprised if part of Apples success with the iTunes Music Store is due to deals with record companies to ensure that iTunes will remain proprietary.
“The company that did the most to get legal downloading off the ground may also be the lead weight on a market whose consumers like to shift among different players and services, taking their libraries with them,’ McGuire writes.
MacDailyNews Take: “Consumers like to shift among different players and services?” What percentage of consumers? Again, we’d like some actual proof of this, please. We can just as easily write that consumers like quality players that come in a wide range of sizes and prices that work seamlessly with an online music service that offers a large library with consistent prices. At least we’d have iPod+iTunes market share and unit sales to back us up.
At least in this point, he’s right. But you can’t move and shift players if you are locked into a DRM (unless it’s M$’s version…). For the moment, the iPod/iTMS combo has the hearts, minds, and wallets of the fickle consumer. But as “hmmm” said above, the game is early and isn’t likely to be an issue – yet.
concerns?
Music companies are only concerned about their profits and controlling content.
Apple’s competitors are concerned that they can’t compete and they are right.Napster RIP
Concern for consumers? Yea, all the lawyers are concerned for consumers. They want to file lawsuits so they can win millions and get consumers “a coupon”.
This article is propaganda, pure & simple.The market is working, consumers are making choices, there are winners & loosers. That’s how it works.
Uhm.. are you for real?
MS is on the losing end of the music market, and you want APple to keep them afloat?
Put the pipe down..
The issue of compatability between different music media formats is far less of an issue from a legal standpoint as is the issue of OS interoperability. Music is considered a luxury. The ability to share music files is not protected by any legal right. If anything – it is restricted by the laws that do exist.
In order for companies like Napster, Real, and even Microsoft (ironically) to make the case for interoperability, they will have to demonstrate that the consumers interest in sharing music across platforms outweighs the recording industry and copyright holders’ interest. This will never happen as long as people are free to chose between more than a few available platforms.
It may be inconvenient to rip an Mp3 file to audio in order to transfer it from one player format to another – but there’s never going to be a legal basis to require anyone to make the different formats any more interoperable than they are now.
The reason Apple is able to continue holding on to its virtual Mp3 player monopoly is that it is not illegal. Sony knows this. Microsoft knows this and so does every other player in the game. Otherwise they’s all be filing suit against Apple. But they can’t.
The record companies don’t want interoperability and they would certainly be on Apple’s side if it ever did become a legal issue.
I have always been of the viewpoint that at some point Apple should license out Fairplay and sew up the market for the long term. It is a question of when. Right now they are riding the wave of profit from being a first mover and that is just what they should be doing. I just hope that Apple doesn’t enjoy riding the wave so much they forget to think long term.
MDN’s take deserves a couple of clicks on its ads.
MW: “music” to my ears.
It has been said before but it must be said again, the de facto standard for digital online music files is MP3 files. It was MP3 at the start of the digital music revolution and it will be MP3 files for the foreseeable future.
Well said Buffy!
HEY, stop your bickering you guys sound like old hags!
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Once Apple wipes out the main competition (Real, Sony, Microsucks) then they will start to license DRM. Right now its a heated competition to wipe each other out. Well, okay, its really no competition at all. iTunes+iPod is kicking the socks off all the other offers. But yea, in the future it will be in the interest of Apple to license DRM. Just not right now. You have to look at this from a business perspective. Conusmer issues only matter if it affects sales, and maybe a few other factors like market share. Thus, now is not the time to license DRM because the consumers are happy with the iTunes+iPod combo.
You guys need to lighten up, these posts get too serious and bickering way too fast!
Lets clear the air. Unless the record companies will allow lossless downloads without DRM, this will continue forever. Give the consumer the ability to download music in lossless format without DRM and then all problems will go away.
WMV, RM, AAC, Altrac, and MP3 are all proprietary formats. You can argue that AAC is open, but is it really? A country club might be open to anyone but if its priced beyond most peoples reach, its hardly open. That is how I view AAC. Sorry, I can’t afford to make music software that supports AAC because I don’t have $25K for the license.
Start selling music in FLAC format. Otherwise, I’ll continue to buy used CD’s to get my music onto my iPod.
It seems that these whiners are actually give people reasons why they shouldn’t use their products. After all, if compatibility is a concern, isn’t just easier to stick with the biggest dog in the yard?
Oops… I meant “giving.”
This has nothing to do with the thread of the article I just thought it should be read by all, on how race legend Sterling Moss switched to an ibook.
http://racelegends.typepad.com/pressing_on/2005/01/sir_stirling_mo.html