Microsoft plans Super Bowl ad for ‘iPod killer’

“More details are now surfacing on the upcoming, Microsoft-branded portable media player, thanks to continued discussions with inside sources. Over the weekend, Digital Music News reviewed presentation materials given to various partners and top-level executives. The materials offered detailed insights into the strategy, player, software, e-commerce, and marketing aspects of the release. The materials reinforce and expand upon earlier reports, and offer a far deeper and definitive look at the player. In terms of top-level strategy, Microsoft is taking heavy cues from the iPod+iTunes combination, which has helped to propel Apple to its dominant market position,” Paul Resnikoff reports for Digital Music News. “Microsoft is aggressively aiming to capture ’20 percent’ of the iPod market, a goal that will be assisted by heavy advertising beginning in the fall”

“According to the sources, the device will offer 30GB of storage, though it will deliver the ‘same pricing, look and feel as the 60GB iPod.’ That would suggest a retail price of $399, the price point for the high-end iPod. Immediately, the sticker is likely to draw comparisons to the comparable 30GB iPod, which is available for $299,” Resnikoff reports.

“Software is an incredibly important aspect of any digital device release, and Microsoft is now aiming to create a powerful one-two punch. Guiding the approach is a “closed ecosystem paired with a branded device,” which essentially describes iPod+iTunes… the newer ecosystem will be ‘incompatible with other Windows Media services,’ placing the focus squarely on one device, and one jukebox and store,” Resnikoff reports.

“The Microsoft-branded player will be accompanied by a massive advertising campaign [that] will be ‘equivalent to the launch of the Xbox,’ beginning with a fall splash. And the Xbox community itself will be an important starting point for the campaign. Upon launch, Microsoft will create an impact though a ‘7 cities in 7 nights’ tour, which will involve big-name artists, key cities, and live performances that will be exclusively positioned as downloads ‘on the web and music store.’ Throughout, the messaging will be focused on the ‘device plus store.’ Big box retail outlets will offer a nice push. Sources note that the device will be ‘overwhelmingly sold at Target, Best Buy, and Walmart,’ and nearly 30,000 retail outlets across the US. A Super Bowl spot is also reportedly in the works.”

Full article here.
Are Microsoft really shooting for 20% of the iPod market or are they actually targeting the 20% of the market that iPod currently doesn’t own? We suspect the latter. Regardless, we hope Microsoft spends a lot of money on this. While we don’t see Microsoft’s efforts as much of a threat to iPod+iTunes, we also hope it pushes Apple by providing some measure of real competition that will drive innovation even faster.

For more on why we don’t think Microsoft can “kill” Apple’s iPod+iTunes, please read our take here.

For those wondering, we doubt that Microsoft will offer a download of their Super Bowl ad for Apple iPod.

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41 Comments

  1. Good to know Microsoft is up to something (aside from re-writing Vista, that is).

    M$ iPod Killer (wonder which name will have) is the second greatest invention, coming after…………..hmmm…..hmmm……ORIGAMI!!!!

  2. Latest April Fools Day joke ever…

    Let’s see, it’s $100 more expensive than the iPod, but it’s distribution channel is the low-end such as Wal-Mart.

    It’s incompatible with all other Windows Media stores and services, and you’ve be locked into Microsoft for the hardware and software.

    Microsoft plans this big mega assault for 20% of the market when they’re needing to defend against the PS3 and while they’re trying to launch Windows Vista.

  3. A quote from an October 2003 MSFT PressPass ‘interview’ with Dave Fester, who – at the time – was general manager of Microsoft’s Windows Digital Media Division.

    PressPass: We’ve heard that Apple will be launching a Windows-based version of iTunes. Do you see that as impacting Napster or other Windows-based services?

    Fester: iTunes captured some early media interest with their store on the Mac, but I think the Windows platform will be a significant challenge for them. Unless Apple decides to make radical changes to their service model, a Windows-based version of iTunes will still remain a closed system, where iPod owners cannot access content from other services. Additionally, users of iTunes are limited to music from Apple’s Music Store. As I mentioned earlier, this is a drawback for Windows users, who expect choice in music services, choice in devices, and choice in music from a wide-variety of music services to burn to a CD or put on a portable device. Lastly, if you use Apple’s music store along with iTunes, you don’t have the ability of using the over 40 different Windows Media-compatible portable music devices. When I’m paying for music, I want to know that I have choices today and in the future.

    PressPass: How do the current Windows-based services differ from iTunes?

    Fester: As I mentioned, there are lots of choices in Windows music services. The service that offers consumers the most tracks and best experience will win the hearts and minds of consumers. If you look at Napster, it will launch as the world’s largest online service with over half a million tracks from all the major labels and hundreds of independents on October 29. Napster goes way beyond individual downloads, offering advanced services such as unlimited downloads, customized radio, shared playlists, music videos and more. Music fans can use dozens of devices with Napster, and can even enjoy this service in the convenience of their living room with a remote control and Microsoft Windows XP Media Center Edition 2004.

    All told, music fans should look for services that offer the best experience and take advantage of the best digital media platform available on Windows. With Windows Media 9 Series, you get faster starts, better quality music, and support for the most devices.

    PressPass: What’s next for consumers?

    Fester: I believe we are on the verge of seeing solutions that go far beyond just the digital download. We are seeing some of this already with Napster which is delivering an immersive music experience. Consumers are interested in what the artists are doing, what their friends are listening to, how they can share ideas, opinions and music samples. It’s an exciting time for consumers where digital music is finally delivering on the promise of music anywhere, anytime and on any device.

    Anyone who wants to play Spot the contradiction is more than welcome.

  4. A few comments:

    — I’m not the slightest bit worried about a Super Bowl commercial for a Microsoft DMP. Microsoft has no clue how to advertise to the consumer. Look for a clumsy ad that will inspire head-shaking and giggles.

    — Don’t make too much of the “XBox” branding. The XBox, for most of its life, was an utter commercial failure. It managed to gain traction among hardcore gamers, due to the Halo games and XBox Live (resulting in a perception of success in the video game media), but it never caught on with the mainstream and lost a ridiculous amount of money. The only reason there’s an XBox360 is Microsoft’s deep pockets and their willingness to empty them in the obsessive pursuit of new markets.

    — Microsoft’s inability to keep its collective trap shut about its new plans is going to kill it in this market. The constant leaking makes sense when you dominate a market and can freeze sales of competitors’ products via vaporware. But when you’re in second place or worse (and getting your butt whupped), all the leaking does is give your opponent time to respond before your product even hits the market.

    I’d love to see an amazing new iPod come out just before Microsoft announces their baby. And you know, if Microsoft plans to introduce it during the Super Bowl, that would make MWSF in January the perfect venue to steal their thunder.

  5. Suggested Apple counters the day after Zune is announced:
    1) License Fairplay to all current MSFT DAP hardware partners.
    2) Offer iPod dock connectivity to all current WMA MSFT DAP manufacturers (license).
    3) Offer subscription iTunes music service to all .Mac customers.
    4) Incorporate WINE support into OSX 10.5 negating the need to buy Windows.
    5) Offer a ODF compatible “Office” suite at half the price of MS Office.

    Time to play HARDBALL.

  6. I realize it’s not released yet, vapourware, blah-blah and all that. But this does give me concern. The question isn’t whether the microsoft device will suck or not. I’m pretty sure it’s going to suck. The problem is that history has a tendency to repeat itself, and Apple has a tendency to be brushed aside by mediocre, but cheaper products. So far, no one’s mediocre product has been quite good enough. But leave it to microsoft to make a product that sucks, but doesn’t suck quite enough to make everyone think it’s a complete joke. And the next thing you know, Apple’s market share starts bleeding away to Microsoft’s crap. Then Microsoft starts playing a little bit of dirty pool and the next thing you know we’re back into the dark ages again. 🙁 Please Lord, Help us in our times of trial. (By Lord of course, I mean Lord Jobs.)

  7. Please oh please oh please let the ad feature Ballmer monkey dancing with the MS player.

    Hell, forget the TV ad. MS should BUY the halftime show, and have it be a giant MS media infomercial!! Just imagine: Ballmer, live on center stage, in front of the world. Bonus points if you can imagine it & still keep your lunch down.

    That said, will MS name the thing already? “Microsoft Windows Media Portable Personal Entertainment Adjutant Device” seems fitting.

    Although for money I’d bet on “xPod”.

  8. “According to the sources, the device will offer 30GB of storage, though it will deliver the ‘same pricing, look and feel as the 60GB iPod.’

    So MS wants to charge a 60g price for a 30g product? It’s MS logic alright.

  9. Apple is so doomed. After years of putting out a crappy MP3 player that only plays stolen music, there will be competition. Since Apple only makes money from the iPod we will see the end of Apple. Everyone wants an open player that they can purchase music from a variety of sources — and that runs and is developed for the real operating system – Windows. Time to short the living daylights out of Apple stock again!

    Oh, what a knee slapper MR… but the joke is on you I’m afraid.And while we’re at it, putting Microsoft and open in the same sentence is conflicting in every way (hence Windows-only), as well as saying Windows is a ‘real’ operating system. Windows is a toy (with a Fisher Price look and feel to match) for corporate IT bureaucrats to play with while the real work gets done on Unix/Linux!

  10. Apple is cool. Microsoft is not.

    There are two types of people that would buy one of these:

    1. Apple haters–Just because.

    2. Cheapskates–Because they buy the hype, and not the reality. They will think that they are getting something that is ‘open’ as opposed to Apple’s ‘closed’ iPod.

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