| When we all first heard about | | | | which limits three plays or three days. |
| Microsoft's Zune -- it sounded like a | | | | Now, If it was me. I would have even |
| decent contender for an Apple iPod | | | | allowed Zune music to be shared with no |
| competitor. Big screen, video, pictures, | | | | restrictions. But I am a communist. |
| wireless sharing of music plus rewards | | | | I am also a realist. Microsoft needed to |
| for people sharing music. It sounded | | | | keep the record labels happy. However, |
| like it was to good to be true (or to | | | | they could have easily done this by |
| good to be Microsoft). It sounded like | | | | restricting the sharing of Zune |
| a big fat powerful idea. | | | | purchased music and allowing a free for |
| But reality and corporate trenches are a | | | | all with any other media. |
| bitch. Here is only some of what went | | | | I think Microsoft knew this all along, |
| wrong. | | | | but failed at the negotiations table. |
| Pay Per Sale to Universal | | | | Setting the Price to High |
| Despite what most thing, the decision to | | | | If I was Microsoft (what I believe to be |
| pay Universal for each unit sold was a | | | | a smart modern organization), I would |
| relatively good strategic move. This | | | | have the knowledge that traditional |
| will force iTunes to renegotiate with | | | | marketing is dead. All the money they |
| potentially different terms with the | | | | spent on TV advertising campaigns and |
| Major labels. ("If Microsoft did it, | | | | branding could have been much better |
| then so can you"). | | | | spent. |
| However, take special note that giving | | | | They did something right with paying |
| Universal a piece of the pie indicated | | | | bloggers to speak Zune and promote |
| that both sides are in agreement that | | | | critique it. (This, is not a paid post). |
| there is a relatively large amount of | | | | They should have passed the marketing |
| piracy that happens on these devices. | | | | savings onto the customers. I would have |
| Therefore, the payment is basically a | | | | priced it quite below iPod ($50 dollars |
| levy in MP3 players which goes right | | | | seems like a doable number minus a multi |
| into the labels pocket. | | | | million dollar advertising campaign). |
| Wireless | | | | Combined with wicked sharing |
| Seth Godin has clearly demonstrated, in | | | | functionality, this would have been a |
| his book The Purple Cow that for a | | | | low market disruption that could have |
| product to be popular, it must be | | | | changed the world. |
| remarkable in some way. The wireless | | | | Sadly, many MP3's from SanDisk and |
| feature was it for Microsoft, but here | | | | creative seem to be on par with this |
| is where they botched the job. | | | | initial Zune. |
| Here is what they should have done, | | | | No Podcast Support |
| since they already agreed to pay for the | | | | Podcasting is essential. I use my iPod |
| piracy subsidy. It should have been a | | | | to stay updated with News and the |
| free for all. Let people share | | | | going-ons of Silicon Valley. I plug in |
| everything that wasn't purchased from | | | | my iPod, it updates my podcasts |
| the Zune store. Let them trade video, | | | | automagically, and I listen to them at |
| audio, text, ebooks, cracks, patches, | | | | the gym. I won't buy a Zune because of |
| everything. Publish an API and let | | | | the inconvenience of this lack of a |
| people build applications on it. Make it | | | | feature. |
| every nerds dream. | | | | There inability to have a backbone at |
| But they didn't did they? The reality | | | | the negotiations table, the pointless |
| is, they basically made the wireless | | | | advertising campaign, the high cost, and |
| connection useless. Every file that you | | | | the under utilization of the wireless |
| desire to share, regardless of whether | | | | functionality will be the death of the |
| it came from the Zune store, or your own | | | | first iteration of the Zune. |
| CDs is wrapped in a very restrictive DRM | | | | |