Today, Best Buy unveiled the Best Buy Digital Music Store, a new service that hopes to compete with Apple’s market-dominating iTunes Store.
The new service, powered by the RealNetworks, Inc.’s Rhapsody music service, features both a permanent download store and a subscription download service. As part of this launch, Best Buy also will carry and promote the SanDisk Sansa e200R Rhapsody MP3 players, which, according to Best Buy, “have been optimized to work seamlessly with the Best Buy Digital Music Store.”
The Best Buy Digital Music Store and the Sansa e200R Rhapsody players will both be available at participating Best Buy stores as of Sunday, October 15th.
“Our goal is to deliver entertainment to our customers how, when and where they want it, and to help them have the best possible experience,” said Jennifer Schaidler, vice president of music for Best Buy, in the press release. “The Best Buy Digital Music Store and Sansa e200R Rhapsody are part of that goal allowing us to provide an end-to-end digital music solution that will deliver unique content and a premium customer experience. Whether they want to purchase downloads or a subscription and have access to all the music, we’re giving consumers the ability to enjoy entertainment on their terms.”
“We have spent more than two years developing the new Rhapsody, creating the best end-to-end digital music experience ever,” Rob Glaser, Chairman and CEO, RealNetworks, said (presumably in-between bites) in the press release. “Our alliance with Best Buy and SanDisk provides an awesome marketing and distribution platform to deliver this great experience to consumers.”
“SanDisk is proud to team with Best Buy for the launch of their Digital Music Store featuring Rhapsody 4.0,” said Eli Harari, president and chief executive officer, SanDisk, in the press release. “This three-way relationship gives consumers everything they need to seamlessly obtain and enjoy their music.”
By aligning with RealNetworks and SanDisk, Best Buy leverages its position as an entertainment leader, its understanding of consumers, and the strengths of RealNetworks and SanDisk to bring a compelling end-to-end music solution to its customers. Best Buy is the #1 retailer of MP3 players in the U.S. SanDisk is the distant #2 manufacturer of MP3 players in the United States. RealNetworks is the #1 digital music subscription services provider, with more than 1.6 million subscribers.
We can’t wait to see how forcefully Best Buy pushes this hodgepodge of also-ran devices and software on their poor customers and how their customers react. On Sunday, October 15th, wouldn’t it be fun if we all stopped at our local Best Buys and asked to see the Apple iPods?
From The Channel Checkers’ article we covered earlier today that surveyed MP3 player recommendations:
MP3 Player – Price – Retailer – Location
Apple iPod 2GB – NA – Best Buy – Astoria, NY
Apple iPod Nano 2GB – NA – Best Buy – Danbury, CT
Apple iPod Nano 2GB – $149.99 – Best Buy – Mesa, AZ
Apple iPod Nano 2GB – NA – Best Buy – Indepenence, MO
Apple iPod Nano 2GB – NA – Best Buy – New York, NY
Apple iPod Nano 2GB – $149.99 – Best Buy – Silverdale, WA
Apple iPod Nano 2GB – $149.99 – Best Buy – Wilmington, DE
Apple iPod Nano 2GB – NA – Best Buy – Roseville, MI
Apple iPod Nano 2GB – $149.99 – Best Buy – Charlottesville, Va
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Analyst: Best Buy may ‘rapidly’ expand Mac pilot program – June 05, 2006
Best Buy mucks up MacBook photo on website; shows MacBook Pro instead – June 01, 2006
Best Buy now selling Apple MacBook Pro, MacBook, and iMac models – May 31, 2006
Apple Mac mini now available at 671 Best Buy retail stores – April 06, 2005
It’s official: Apple acknowledges Best Buy to carry Mac mini models – April 05, 2005
Study reveals Apple continues to gain share in music markets – October 04, 2006
More blood on Apple iPod’s Click Wheel: Dell’s ‘DJ Ditty’ flash-based MP3 player is dead – August 22, 2006
More blood on Apple iTunes Music Store’s play button: MyCokeMusic is dead – June 20, 2006
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More blood on Apple iPod’s Click Wheel: iRiver pulling out of Europe? – February 01, 2006
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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
Apple’s iTunes Music Store has blood on its play button: BuyMusic.com is dead – March 28, 2004
Computerworld review: ‘Apple’s new iPods are better than ever’ – September 27, 2006
PC Magazine’s 19th Annual Readers’ Choice Awards for MP3 players: Apple iPod line – September 25, 2006
USA Today reviews new Apple iPod nanos, updated iPods, iTunes 7 (each earns 4 stars out of 4) – September 21, 2006
Time Magazine’s Gadget of the Week: Apple iPod 80GB – September 21, 2006
CNET Editor’s Choice: Apple fifth-gen updated iPod – ‘best, most attractive iPod to date’ – September 20, 2006
Disney’s remarkable 1st week iTunes movies sales should have studios clambering aboard Apple train – September 20, 2006
Disney sells 125,000 movie downloads via Apple’s iTunes Store in first week – September 19, 2006
PC Magazine review: iTunes 7 ‘Apple’s best effort yet’ (4 stars out of 5) – September 15, 2006
CNET Editor’s Pick: Apple’s new 2G iPod nano – ‘sure to be top choice among wide range of users’ – September 14, 2006
Apple debuts new iPod in 30GB and 80GB with Hollywood movies, games and new lower price – September 12, 2006
Apple intros new iPod nano with new aluminum design in five colors and 24-hour battery life – September 12, 2006
Apple unveils new iPod shuffle: world’s smallest digital music player – September 12, 2006
Apple debuts iTunes 7 – September 12, 2006
skeptic,
If Micro$oft asked them to!
October 15th 3:00 PM EST. I’m there. It sounds like a plan.
The interface is almost identical to the old MusicMatch Jukebox, right down to the volume control.
great…more competition for Zune at the bottom 10% of the market.
It’s nothing that wasn’t available before, using a Sandisk player with Real’s music service. How is Best Buy adding value to this alliance, except for marketing and sales? And Microsoft is obviously an unpopular member of this alliance with the DRM and player-PC interface software, so it is actually FOUR companies trying to give the customer a seemless user experience. Good luck with that…
I actually work for Best Buy, in a specialty store within the store called Magnolia Home Theater. When I’m not selling plasmas, I make a living off of selling iPods because of their ease of use, compatibility, and of course the iTunes Store. They haven’t talked to us about this new venture yet, but I’m sure they will soon.
Mark my words: I flat out refuse to lead customers to this inferior product regardless of what they tell us. I’ll let you guys know what they say for us to do (inside information is always interesting, right?).
I wonder if anyone has created a website in honor of past iTunes Store Killers (may they rest in peace). Kind of an iTunes Store Killer Graveyard. It would be interesting to review the numbers that have fallen. I am sure their history would be a testimony we could all learn from.
Lower Expectations!
Another day, another killer is released.
I doubt this will see its way past the parole board.
I noticed that Best Buy has gone the route of using an application based music store rather than one which is web based. I think this is a wise move on their part because iTunes is so much more than web site.
But where is the comparison to the BB music app and iTunes? Does it do all of the same functions (import CD’s, album art retrival, cover flow, burn CD’s, etc.)? Can the music be transferred from one computer to another? What are the worst aspects the DRM? Can music from my iTunes library be imported?
These are the questions I want asked, but the journalists who write about the latest iPod killer or iTunes killer never get below the shallowest review possible.
In the end, it doesn’t matter because I’m going with iPod/iTunes anyway.
Someone put together a bullet list of say, 5 pertinent questions that point out the obvious, so that everyone’s on the same page 10/15.
Oooohhhh, what fun.
1. Is the software/store compatible with iPods?
2. Does it work with the iTunes Store?
3. Does it at least work with PlaysForSure?
4. Will it work with Zune?
5. Sounds like a great investment. How can I get one?
Oh, I’m loving this. You know what this is, right? The story makes a big deal of competing with the iTS, but the true driver behind this is Zune. The non-Apple bottom feeders are in more danger from Zune than from iTunes. Zune will eat all of their marketshare before it makes a dent in Apple’s. They’re scrambling to come up with their own system before they’re all “PlayedForSure”.
So now, we’ll have TWO “end-to-end” solutions competing with iPod+iTunes. That means consumer confusion, which in turn means most consumers will go with the market leader. Which, of course, is iTunes!
So three cheers for Best Buy+Rhapsody+SanDisk! Have a KrispyKreme on me, Rob!
This is just gay! I’m not even gonna respond. Best Buy can kiss my left nut
Wal-Mart and Apple are figuring it out, at least in theory…
Likewise, Best Buy has figured it out if it does not stem the tide of online media purchases, it’s music and movie sales in five years will have come to a standstill…
The Real, SanDisk, BB, partnership is temporary.
The goal is to get Apple to deliver an iTunes card for BB with a nice % staying in BB’s pockets.
Best Buy would like nothing more than to get their hands into the iTunes cookie jar, and the way to do that is to force Apple’s hand, by denting iPod sales this Christmas, while putting $$$ into their own pockets at the same time.
The problems for Best Buy?
1. Even though the kids in blue will be pushing this “solution” to the hilt (trust me, they already are) it won’t convert sales to their partner solution, nor will it dent iPods sales like they are hoping.
2. Apple will not budge until BB can proove they are disrupting Apple sales.
The result is that BB will continue to hock a losing proposition, and perhaps slightly hurt iPod sales – delivering a double blow to themselves.
Eventually, Best Buy will figure out that working with Apple and abandoning other routes is the best move. But it won’t come soon, and it won’t happen without a lack of trying to fight the tide.
Not really sure how this helps Best Buy – I guess the margins on subscriptions are so huge that they can get a decent cut. On the flip side, Best Buy can basically promote the store to clueless customers. I suppose if a consumer is so tech-retarded that they need someone to show them how to use the software, then it could help.
Regardless of the Best Buy component, the Real/SanDisk pairing is going to be an interesting side effect of Zune. I’m curious to see if any of the hardware manufacturers abandon Plays for Shit and go for superior integration to one store. If this happens and someone gets it right, that will be a challenge to the iPod. Not saying anyone is going to topple Apple any time soon, but integration and ease of use are critical areas where the iPod has a clear advantage. IF, and it’s a big if based on how these folks have operated thus far, someone gets a great user experience, they will be able to effectively battle Zune (I really have no faith that the user experience there will be spectacular) and any Plays For Some dimwits, as well as chip at iPod marketshare.
“…Whether they want to purchase downloads or a subscription and have access to all the music, we’re giving consumers the ability to enjoy entertainment on their terms.”
The only problem is the entertainment industries (and their pimps like Real, Napster, etc., etc.,) obviously aren’t listening to consumers. Consumers have overwhelmingly voted with their money and all the economic evidence quite clearly shows that the vast majority of consumers aren’t interested in subscriptions.
I’m not saying there aren’t people for whom subscriptions don’t fill a need or want, but it’s quite clear that subs are a niche market. The only ones who will eventually succeed in it are those that will recognize that, and who will start filling a need instead of trying to create one.
Real spent 2 YEARS developing the “new” Rhapsody? What, was Glaser working on it all by himself?
And CRoP, no, it won’t be compatible with Zune, because that’s Microsoft’s baby (an ugly, deformed baby, but still theirs, so they think it’s cute).
Ever heard of people copying the dvd’s they rent?
I rest my case.
so 2 shit ass companies teamed up with a company that doesnt specialize in audio hardware to make one great solution….. they are probably motivated to do this by microsoft but it will end up casting them money in the end… whatever.. more entertainment for me
it least it exists… unlike zune.com
Dam.I thought this story was about a topless bar I used to go to-Breast Buy…
Hmm, that neat Mr Best Buy dude. I have one of those white jellybean computers does it work on those too? No? Well which type of player should I buy then? Oh, an iPod…sweet! Fsck you very much, Mr Best Buy dude!
From Rhapsody web site:
Real offers expanded support all iPods including the new color models. Click More Info to learn why you should manage your iPod with RealPlayer or Rhapsody and to see a list of supported iPod versions.
Note: You can transfer M4A, MP3 and purchased Music Store tracks but Rhapsody To Go subscription content is not supported.
Of course Rhapsody doesn’t work with Safari (or any Mac I guess).
Just another challenge for the crackers out there. I bet the DRM will be cracked in a couple of weeks.