“Apple Computer is becoming the Microsoft of digital music, and that’s not a good thing for either consumers or the music industry. The powerful combination of Apple’s iTunes online store and iPod audio/video players is grabbing so much market share that competitors — until now, at least — aren’t getting a toehold. Microsoft is often criticized for creating a ‘monoculture’ with its Windows operating system. More than 90 percent of the world’s personal computers run Windows, leaving little incentive or opportunity for operating-system competition,” Mike Langberg writes for The San Jose Mercury News. “Ironically, no one knows this better than Apple, with its Macintosh computers confined to a global market share well under 5 percent. Windows users have always faced a huge barrier to exit; they’d have to buy new computers and software to say goodbye to Microsoft.”
“Apple is now creating a similar kind of tollbooth. If you buy music or video clips from iTunes, they will only work on one portable player: the iPod. Once you’ve purchased several dozen albums from iTunes, it’s not likely you’ll switch away from the iPod. If you buy an iPod, it will only play music and video purchased online from one store: iTunes. You can’t try music downloads from rival services such as those offered by America Online, Napster, Rhapsody and Yahoo. Apple’s clout was clearly displayed earlier this month when the Cupertino company arm-twisted the major record labels into continuing to sell all songs at 99 cents. The labels wanted to price hot new singles higher, and older back-catalog tracks lower. But Apple still believes in one-size-fits-all. Whether or not that’s the best deal for consumers is hard to say, because no other music service is offering an alternative.”
Full article here.
Wait a second. Didn’t Langberg open his piece by saying Appe’s iPod+iTunes is “not a good thing for either consumers or the music industry?” So what’s with the wondering, “whether or not that’s the best deal for consumers is hard to say?” Didn’t you already tell us what to think from your opening line, Mike? Then Langberg writes that “no other music service is offering an alternative,” before launching into a paean for MTV’s and Microsoft’s URGE outfit. Schizo much, Mike?
MTV’s and Microsoft’s URGE will fail to touch Apple. How can we be so confident? Oh, just a whim and about fifty previous failures of other Windows-only outfits based on cobbling together Microsoft’s also-ran online music format with third-party digital music players that nobody wants or owns.
Microsoft and MTV might succeed in wiping Napster’s and Real’s services off the map and win the race for Apple’s table scraps, but that’s about the best they can expect. As long as these services can’t work with the iPod and exclude Mac users, they have no chance against Apple who makes iPods for every budget and offers an excellent free iTunes music jukebox with the built-in iTunes Music Store for both Mac and Windows PC users. By the way, Apple’s iPod supports these formats: AAC (16 to 320 Kbps), Protected AAC (from iTunes Music Store), MP3 (16 to 320 Kbps), MP3 VBR, Audible (formats 2, 3 and 4), Apple Lossless, WAV, and AIFF.
As these outfits keep failing, what’s the recurring component of failure in every single case? Microsoft. Perhaps these new services ought to forgo the dead weight of Microsoft and maybe they’d have a real chance? Just a suggestion.
Yes, competition is good, but only when it’s good competition. Otherwise, it just ends up wasting time and money for consumers who make the wrong choice.
MacDailyNews/iPodDailyNews Note: Today is Memorial Day in the U.S. There will be limited posting today.
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Related articles:
MTV URGE will have hard time competing with also-rans Rhapsody, Yahoo and Napster, let alone Apple – May 21, 2006
USA Today reviews URGE music service: crashed often, not all videos played, trouble playing music – May 18, 2006
MTV, Microsoft URGE music service begins life with a severe handicap – May 17, 2006
MTV’s and Microsoft’s URGE should concern also-rans like Real, Napster and Sony – not Apple – May 15, 2006
MTV’s and Microsoft’s iPod-incompatible URGE online music outfit faces uphill battle – May 15, 2006
EMI Music Chairman: Music subscription services like Napster and Rhapsody haven’t beeen huge – January 23, 2006
Oppenheimer downgrades RealNetworks based on Microsoft’s ‘URGE’ partnership with MTV – December 15, 2005
MTV-Microsoft URGE music service not targeting iPod, iTunes users; Real CEO PlayedForSure? – December 13, 2005
MTV and Microsoft team up for new digital music service ‘URGE’ – December 13, 2005
Apple’s vs. Microsoft’s music DRM: whose solution supports more users? – August 17, 2005
Study shows Apple iTunes Music Store pay-per-download model preferred over subscription service – April 11, 2005
More blood on Apple iPod’s Click Wheel: iRiver gives up on digital media player market – May 23, 2006
More blood on Apple iPod’s Click Wheel: Sony’s Walkman Bean is cooked – February 13, 2006
More blood on Apple iPod’s Click Wheel: Dell dumps ‘DJ’ hard-drive MP3 player line – February 04, 2006
More blood on Apple iPod’s Click Wheel: iRiver pulling out of Europe? – February 01, 2006
More blood on Apple iPod’s Click Wheel: Thomson gives up on MP3 player, CE markets – December 12, 2005
More blood on Apple iPod’s Click Wheel: BenQ withdraws from MP3 player markets – November 28, 2005
More blood on Apple iPod’s Click Wheel: Olympus halts production of portable digital music players – November 09, 2005
More blood on Apple iPod’s Click Wheel: Rio is dead – August 26, 2005
Apple’s iPod has blood on its Click Wheel: Virgin Electronics is dead – March 08, 2005
Me? First here! WOW
You can keep us posted only if other schizo guy says something stupid about Apple’s products
PEACE
>>If you buy an iPod, it will only play music and video purchased online from one store: iTunes.
So all those mp3s and video podcasts –none received through iTunes, by the way– really aren’t playing on my iPod?? I must be hallucinating then.
When will the misinformation stop??!
Must have white plastic music thing…ummm click wheel….earbuds comforting….music access limited – DOH!
With music players you have the choice of two proprietary monocultures: Apple’s or Microsoft’s. It doesn’t matter that Microsoft will license its proprietary format because the entire enterprise is still controlled by Microsoft and the record companies. Apple, at least, has a history of opposing the record companies; they have stuck to 99 cents because there is no doubt that it’s what customers want.
Competition in the music store business is a mirage because there is only one source for the goods. Apple is the first company in decades to have something to hold over the heads of record execs to make sure they behave. If they gave that up, things would get ugly.
Magic word “really”.
I love those authors who advocate the free market according to Lenin — share the market so everyone has an equal chance. What crap! This has nothing to do with equality and everything to do with what people will buy.
If Apple makes the best product, or markets the best, or convinces people they are the best, or finds a better price point, fine. They are not preventing other companies from having access to the market. And to extend the analysis, neither is Microsoft. M$ Winbloats may suck, but they have a right to suck if that is their business model and/or they are still able to serve their shareholders. If the market gets fed up enough, M$ will lose market share and may, someday, be forced not to suck. Unlikely, but it is the way free markets work. Apple can grab a 90% market share anytime it wanted OS X IF they can design a model that is effective enough/well funded enough and is accompanied by a product that sells enough.
If someone does something to make themselves better than Apple is at iPod/iTunes, consumers will decide that and buy Product X. (Witness cell phones and iTunes….even the power of iTunes could not save a crappy phones). So, if Apple or M$ holds 90% of their respective market, and that makes it all the harder….too bad….it’s called good business. It is not a question of whether OS X is better than Winbloats or iTunes is better than Product X….the question is whether people THINK that is the case.
It’s not like you can’t listen to Windoze Media Audio files on your iPod or iTunes because you can. For $10 you can do that with EasyWMA (I haven’t purchased it and am not going to). I found this program on VersionTracker.
So how are you ever “locked in” with iTunes?!!
Why don’t these idiots ever point out little programs like this?!
Here’s the URL:
http://www.versiontracker.com/dyn/moreinfo/macosx/23003
Slow News Day, and bad writing day…..seems to happen a lot nowadays….
I know it’s a holiday, but I have to say it;
RELEASE THE ZEALOTS!!!
The music companies never said that they will reduce the song prices on the old songs. It’s what we interpret.
They just mentioned that they needed variable pricing. The newer songs should be priced higher!
Hey Mr. Ferguson:
It would be nice if EasyWMA did indeed convert WMA’s purchased from the likes of Napster, Rhapsody, etc. into MP3s or AACs but I’m afraid it doesn’t. It can only convert unprotected (ripped from one’s own CDs for example) WMA files, thereby making it useless for converting online purchases to iPod playable format.
However, if one did really want to use other services or switch from the iPod (I wouldn’t quite know why….. maybe for a built-in microphone?
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Voyager –
Thanks for the input. Like I said, I haven’t purchased it or even tried it but noticed that there are programs that could conceivably allow you to convert from other formats.
There is more than one way to skin a cat with a Mac!©
Burn drm’d aac to audio CD. It’s called a backup, something everyone should do, and it’s really not that hard. It’s also a way out of itunes control. Am I the only on working today?
I doubt EasyWMA does convert protected WMA files. It is most likely a program that works just like iTunes for Windows which automagically converts unprotected WMA files to AAC. That is nice because it reduces the proliferation of WMA files which many Windows users produce and (illegally) share. However it doesnt help businesses who want to sell music protected under Microsoft’s schema. While I prefer Fairplay to Microsoft’s digital protection, I can understand why people would turn to it and it is not only because they want to compete with the Apple iTune music store. For example, libraries may want to rent audiobooks or digital books in the future. This cannot be done currently with Fairplay and it doesn’t leave many options to those who need that functionality. So, ultimately, those who need to protect their assets will have to adopt Microsoft products and this will progressively increase Microsoft’s market share. Apple will soon have to decide what their most important asset is, the iPod or an ubicuous digital protection technology. It is a tough call.
“Convert your existing music collection from unprotected WMA for syncing to iPod.”
http://www.apple.com/itunes/music/
Note: Unprotected only. The DRM’ed stuff from Napster and the other failures has to be burned to music CD and imported into iTunes.
I guess its about time for competitors to consider AAC and Quicktime to power their music store, the de facto standard has been defined.
(tongue in cheek) “Maybe Microsoft should throw in the towel and stop going their separate way, lest they are doomed as a niche player forever”.
The author is apparently misinformed about being able to play “only” items purchased from iTunes. I have purchased songs from Audio Lunchbox, & MP3Tunes.com that play perfectly on my iPod.
“Why don’t these idiots ever point out little programs like this?!”
Because then they would actually be required to do real research and write a real article. We wouldn’t want that, now would we?
Once again, journalists lowering the industry standards.
I sure can’t wait for the fun and convenience of paying more for hot new singles! It will make me feel special all over.
The author’s central point that competition is good to keep Apple innovating is fine. We all want Apple to keep improving the iPod/iTMS combo, which they have done so far in order to maintain their lead.
Of course, the author does make several of the usual errors:
– you can only buy from “one store”…we all know there are several small, niche stores that sell music without DRM
– that an iPod locks you into iPod-dom forever…that’s funny, because 10K of the 10,100 tracks on my iPod were ripped from CDs and, if I really wanted to get the garish Clix, I’m fine. Those 100 iTMS trax? I don’t know if it is a legal gray area of actually not allowed by the license agreeement, but I suspect I would not be thrown in jail for ripping those tracks to CD and reimporting without DRM. Sheer genius, I know.
– that the other services are “neutral”…by “neutral” the author means those that fall into the MS media player kingdom. There may be more choice, but it is still restricted to “PlaysForSure*”. Oh, and how many of those stores work on OSX?
– the concept that Apple’s insistence on 99 cent songs hurts subscription services. The two do not really compete. If I want a subscription service and there are all these wonderful players to use with it, how does Apple affect me at all? Because I can’t use an iPod? If part of the author’s thesis is that the other players are so great, then why is that a problem? The author would offer the “locked in” argument, but that is not very persuasive.
a. current iPod owners make up only small portion of what is projected to be the mature market – if subscription is so great, they should be capturing a high % of the the newbies
b. I would argue that anyone that has enough iTMS tracks to make switching prohibitive (even in the absence of the ability to transfer by burning) either prefers to own instread of rent or does not have sufficient spending power to affored $15 a month for a subscription. If after a 2 years of buying iTMS tracks you simply cannot afford to have nothing to show for the $100 you spent, how can you afford to be out $150 at the end of 1 year if you let your subcription end? The same folks would more than likely either bought the low end iPod offering or been gifted their expensive player, so the $ barrier is not insurmountable. Another important point here is
c. …the average time between buying new players is around 12 months now. So how is the player a barrier?
*except when it doesn’t
Langberg isn’t evil…he’s just another member of the Windows-centric community.
He mentions that MTV’s URGE service is heavily backed by Microsoft, and is the featured service on WMP 11. What he fails to mention is…WMP 11 IS ONLY AVAILABLE FOR WINDOWS USERS!
And THAT is the reason Apple got into the MP3/music business:
Napster: not supported on Macintoshes
URGE: not supported on Macintoshes
Wal-Mart: not supported on Macintoshes
Yahoo! Music: not supported on Macintoshes
Need I go on?
And I’m sure all those wonderful MP3 players he touts in the article are also only compatible with Windows. (When I signed up for Comcast Internet, I got a free Creative MP3 player…but when I saw it was Windows-only, it went straight into the Goodwill donation bag.)
Sure, Apple didn’t invent the MP3 player — but when it noticed that Mac users were being left out, it came out with its own solution…which like most Apple products turned out to be the best looking and best operating. And unlike other services and products that said, “If you want our product you have to get a Windows computer”, Apple said, “Got Windows? No problem!”
The iPod and iTunes Music Store, are the ONLY PLATFORM-NEUTRAL digital music solutions out there. (At least in terms of Mac/Windows; not sure what Linux folks are using…) I can tell a friend about a cool new album I heard samples of at the iTMS, and she can go check out the same album, even if she’s on Windows. And I don’t have to worry about losing my music if I stop paying the ransom…errrr, “subscription fees”…
Maybe I’m crazy, but all l I do is strip off the iTunes Music Store (iTMS) DRM with the free JHymn and I use the iTMS-purchased songs anywhere and so can anybody else
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Makes is much easier to trade songs with friends.
http://www.hymn-project.org/jhymndoc/
“(Apple) simply created a customer experience that far exceeded the competition.”
Yes, Mr. Langberg, Apple’s iTunes and iPod domination is the outcome of the preference of millions of consumers after comparing and contrasting various services and devices. Anyone designing a better service or device should be able to compete with Apple since they both pursue the same demographic population: computer literate music enthusiasts. However, because others have attempted and failed to meaningfully challenge Apple is not because Apple has rigged the system, but because Apple’s competitors have failed to develop a product or service that matches or exceeds the desired experiences of consumers. In addition, most Apple competitors fail to include Mac users in their business plans and this obviously strengthens the Microsoft hegemony, a fact that you apparently abhor and rouses your deep feelings of the malevolence of monoculture.
Microsoft has had such a large user base that they assumed that PC users would passively accept whatever was fed them. I believe that this illustrates how little respect Microsoft has for PC users and how much complacency and overconfidence permeates Redmond. The prevailing attitude of leadership at Microsoft was and is, “We rule the world and we don’t have to justify our existence. All we have to be is good enough, not better than anyone else.” Microsoft is the dominant producer of mediocrity and uninspired products, and Apple competitors who hope to ride the tailcoats of the Microsoft-only user base share this same pathological opinion.
Any attempt to liken the success of iTunes and the iPod to the pervasiveness of Microsoft’s Windows is disingenuous at best and deceitful at worst. Unless Mr. Langberg can provide incontrovertible evidence how Microsoft has “created a customer experience that far exceeded (OS X)” his argument lacks validity. Windows current worldwide domination is more a blunder of history, the effect of commercial and fiscal inertia, and fear of switching rather than the outcome of innate engineering brilliance and natural leadership skills of Microsoft. It is easier and less expensive for individual to buy an iPod and access iTunes (with freely provided software) than it is to purchase an entirely new computer with new application software.
“Slow News Day, and bad writing day…..seems to happen a lot nowadays….”
Well it IS a holiday today in the US. Don’t like it, go gather your own news and start your own news site.
Ay caramba!:
What you said.
MDN should just slap your post at the end of each forthcoming article positing the same foolish “argument” against Apple’s iPod/iTunes dominance. I’m sure the constant flow of these articles is a long way from diminishing.
Apple Computer is becoming the Microsoft of digital music, and that’s not a good thing for either consumers or the music industry.
—
Sounds like it was written by a masochist on a Windows PC.. BRILLIANT!!
Ay caramba!: Well said! Intelligent and Articulate!
I hope you emailed that to Langberg.
I left him a voice message similar, but not nearly so well expressed, as your posting.