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Writer, Analyst: Microsoft's Janus Will Level Online Music Battlefield

by , 2:10 PM EST, January 25th, 2005

In more coverage Tuesday on Apple, Technology Review published an article by Eric Hellweg that said that the battlefield for online music downloads is about to change considerably. That change is Microsoft's Janus technology that allows users to take subscription (rented) music on their digital media devices, something heretofore impossible. Mr. Hellweg believes that Janus will allow iTunes Music Store competitors to take away Apple's market share.

The issue here lies between Apple's market dominating iTunes Music Store, which holds some 90% of the market for songs purchased online. That leaves 10% to be split amongst Apple's various competitors, a small slice of the pie for any one of them.

The one area that Apple's competitors have had some success with, however, is with subscription services. A music subscription through Napster or one of the other services allows users to have access to hundreds of thousands of songs, but only as long as the subscription is current. If a user downloaded 10,000 songs, enough, say, to fill a 40 gigabyte digital media player, those downloads would no longer work should the subscription lapse.

For those who enjoy the kind of variety that offers them, the fact that they don't own the music isn't an issue. Apple CEO Steve Jobs, on the other hand, has gone on record as saying that the vast majority of people do want to own their music, and that Apple would not be offering a subscription service.

So far, that has been borne out, but Mr. Hellweg said that a major stumbling block for subscription services is that users couldn't take their music with them on their non-iPod music players. Janus promises to change this by making it possible for rented music using Microsoft's Windows Media digital rights management can be taken with users on their players.

"When the subscription services become portable," wrote Mr. Hellweg, "the effect should be nothing short of revolutionary -- immediately leveling, if not reversing, the current iTunes-dominated digital music market."

You can read Eric Hellweg's full arguments at Technology Review's Web site.

Mr. Hellweg's arguments are being echoed by Yankee Group analyst Mike Goodman, though in substantially less detail. In coverage of Apple's announcement that 250 million songs have been downloaded from the iTunes Music Store, CIO Today quoted Mr. Goodman as saying Apple will lose market share by not offering a subscription service.

"Tethered downloads include the best of both worlds," Goodman told CIO Today. "The two different models have existed simultaneously because of technology limitations. But that barrier has fallen by the wayside."

You can find that article at CIO Today.

Observer Comments

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Close Name:John F. Braun -   TMO Staff Posts: 227 Joined: 11 Jun 2001
Subject: Wait Until Janus is Hacked

I can't wait until someone loads up on subscription music, and then figures out a way to remove the Janus DRM so that they can get a huge collection of music for a small monthly fee. Once this happens, watch Janus fall apart, and the labels stand more strongly behind the pay-as-you-go model.

Close Name:Dreadnought Posts: 160 Joined: 01 Jan 2005
Subject: I just don't get it

Why would I want to pay and pay and pay, and keep on paying, for the same 4 minutes of music. Month after month, year after year. It is not so theoretical that I could pay a few hundred dollars a year for the same few tracks.

I just don't get it.

Close Name:geoduck Posts: 1721 Joined: 30 Dec 2003
Subject:

When the subscription services become portable," wrote Mr. Hellweg, "the effect should be nothing short of revolutionary -- immediately leveling, if not reversing, the current iTunes-dominated digital music market."

Until that is the first time you forget to re-up, or the MS database hiccups, or your computer gets the wrong date in its head, etc. etc. and you lose your whole collection. Then people will realize that rented inline music is worth the paper it's printed on i.e. nothing. Rented music is in the same class of stupid ideals as rented software. Some may fall for it but not me.

View Name:Guest
Subject: More "analysts" nonsense
Close Name:Biff Posts: 1479 Joined: 08 Apr 2004
Subject: In other news...

...Apple will go out of business if they do not port OS X to x86.

View Name:Guest
Subject: Arrrrgh! Noone wants to rent music!
View Name:Guest
Subject: "Analyst" FUD
View Name:Guest
Subject: Ummmm how can...
View Name:Guest
Subject: CD burning
View Name:Guest
Subject: More than a software company
Close Name:DrD Posts: 41 Joined: 28 Apr 2003
Subject: Paid for music-radio

Music subsciptions seem to me very close to subscription radio except more hassle. The principle seems to be that you'll be happy with a full music player of up-to-the-minute music which can be listened to any time you like.... sounds a bit like the radio to me.

Most of us have collections of music dating back years, some of which is modern some of which is embarrassing and some we forget to listen to. Having an ipod full of music allows you to re-discover your music with moments of half-enjoyed embarrassment at hearing 'The frog chorus'.

If you are having to pay for every track you have for as long as you have it, you won't be keeping the music for the future, to listen to only once in a blue moon. Who would admit to paying a regular subscription for keeping anything by Duran-Duran!

I sympathise (in part) with the analysts, they have to identify 'the next big thing (tm)' it's what they're paid for. Problem is subscription music ie radio will always be a niche market. People have wanted to own and keep their music since the wax recording cylinder. A collection of music is not only a representation of who you are or who you'd like to be now but is also a personal history. I for one, mourne the passing of album art with digital music but I'm sure I'll get over it, much as I did with the passing of vinyl. However I still have a collection and unless I purposefully throw it away it'll be there in some form or another in 10 years for me to enjoy/groan/wince at.

[edited for spelling]



Last edited by DrD on Tue Jan 25, 2005 5:45 pm; edited 1 time in total
Reply | Quote
Close Name:randompro42 Posts: 216 Joined: 25 Sep 2003
Subject:

this is conjecture, but "hacking" this may be easier than ever

i would be almost willing to bet that the ok scheme is checked when the player is plugged into the computer. this means, rent one month, download everything, and never plug your music player into the computer again

once again, i said almost willing to bet...

TRO

and in other news, apple will go out of business due to the iPod "fad"

Close Name:Tiger Posts: 937 Joined: 17 Jun 2003
Subject: make up your mind

either the market is saturated and Apple's sales of the iPod and songs from iTMS will falter because of this or some new form of the technology is going to wipe out the Apple juggernaut in the music arena because Microsoft deems it so.

Next, pull your cranium out of the inverted side of your anterior until you hear the popping noise and then you will feel better.

Analysts. What a concept.

Close Name:Tiger Posts: 937 Joined: 17 Jun 2003
Subject: PS

More likely, people will confuse Janus music interface with Janus Mutual Funds and stock brokers will be the ones getting rich, NOT Microsoft.

Close Name:Maccers Posts: 304 Joined: 29 Aug 2001
Subject:

Page 2 of the article states:

Apple's iTunes, for example, announced it has sold 250,000 million songs since the store went online,

Thats a lot of songs . Sounds to me like Apple's got the market pretty much sewn up.....

View Name:Guest
Subject: Heres the hack
View Name:Guest
Subject: Apple in the lead...of a marathon
Close Name:AlanAudio Posts: 23 Joined: 25 Nov 2004
Subject: Janus could work to Apple's advantage

You may be somebody who bought something other than the iPod a year or two ago, before it was obvious to everybody except paid-for analysts that the iPod was going to be the market leader.

So now, if you're thinking about a Janus-enabled player, you'll need to buy a new player ( in marked contrast to those who are still using their original iPods ).

What are you going to choose for a new purchase ?

Some no-name player where you rent your music forever, or are you going to take this as your opportunity to buy an iPod, just like everybody else has ?

Plenty of people bought Betamax when it first came out and VHS was also fresh out.

Did anybody update their original Betamax with a newer, second Betamax once they saw how VHS was the only format in town ?

View Name:Guest
Subject: secure clock
Close Name:Billy K Posts: 297 Joined: 06 May 2004
Subject: Just what I want...

...another subscription.

The current business model of locking consumers into subscriptions in order to generate a self-renewing source of income (ala Cel Phone and Sirius subscriptions) is just pissing everyone off. Sure, it's easy to start up, but pretty soon you find yourself saddled with several hundreds of dollars worth of subscriptions per month in addition to your usual bills.

People are gewtting sick of this, and they're going to eventually ask the question, "why should I have to RENT music?"

I can see this being popular with kids and teens who can't afford to buy a whole lot of music up front, but they tend not to re-up things like this. As for adults with disposable income, they're just gonna want to buy it outright.

I see this going nowhere (God, I hope...)

Close Name:Mace Posts: 9163 Joined: 07 Aug 2003
Subject:

First, iTMS holds a 70% not some 90% of the market for songs purchased online.

Janus can be abused. For example, only one student in the dormitory needs to subscribe to Janus music subscription. The rest can share the music in their own digital music players. For iTunes/iTMS/iPod case, the effort is not worthwhile because the cost of so many songs is too high.

That said, corporate, educational institutions and clubs might be interested in subscribing to music.

Close Name:JimWCB Posts: 301 Joined: 29 Aug 2002
Subject: The biggest problem with these 'rental' systems...

Is the hardwre and software become worthless if the company either:

a) goes out of business
b) decides the service isn't earning revenue and cancels the service
c) upgrades to newer versions of hardware/software and decides not to continue supporting old users


Any former user of DIVX should know the perils of 'rental' media.

View Name:Guest
Subject: Janus=Microsoft Codename for Bill Gate's Anus
View Name:Guest
Subject: Who is going to throw out their iPod to use Janus?
View Name:Guest
Subject: Streaming music ....
Close Name:jacrav Posts: 268 Joined: 04 Jul 2001
Subject: Proofreading …

Please, Bryan, proofread before you post … :
“Janus promises to change this by making it possible for rented music using Microsoft's Windows Media digital rights management can be taken with users on their players”
Does this sentence make any sense ? 0)

Close Name:jacrav Posts: 268 Joined: 04 Jul 2001
Subject: Only a slight exageration …

”… immediately leveling, if not reversing, the current iTunes-dominated …“
I like the “immediately”, considering that 90% of the mp3 player market is made of incompatible players. I fail to see how Janus can do that unless MS does a Real job on the iPod and cracks the software to allow its own downloads on it … Short of that, we’ll have to wait until at least 50% of the market is taken back by the “rest of them”: a long way to go, it seems, with the shuffle doing its best to devour the other 10%.

View Name:Guest
Subject: Analydiot analysis
View Name:Guest
Subject: A Quarter of a Billion Served
Close Name:LaurieF -   TMO Forum Mod Posts: 3497 Joined: 15 Jun 2001
Subject: Is it too obvious to call..

...Janus two-faced?

View Name:Guest
Subject:
View Name:Guest
Subject: Microshaft will plug analog hole
Close Name:AyaSofya Posts: 137 Joined: 11 May 2004
Subject: Janus is the God of

Quote
LaurieF wrote:
...Janus two-faced?


Yes, the God of "Gates", and doors. As such it will probably be another entry way for virus, worms, spyware and other Windows plagues.

View Name:Guest
Subject: Janus is a worm
View Name:Guest
Subject: I'm not renting
Close Name:Mav Posts: 1157 Joined: 17 Oct 2003
Subject:

Quote
John F. Braun wrote:
I can't wait until someone loads up on subscription music, and then figures out a way to remove the Janus DRM so that they can get a huge collection of music for a small monthly fee. Once this happens, watch Janus fall apart, and the labels stand more strongly behind the pay-as-you-go model.


I hear ya -- that or simply have their computers recording the sound output. Even with such a "low-tech" approach of "record as you go," suddenly, a $20 or so a month subscription easily becomes a $20 or far more benefit per day to savvy "temporary music subscribers." What were the labels thinking? Really, it's this potential for abuse that makes me wonder how this "celestial jukebox" I hear about could ever be a success, at least with the hackers getting far too much of their money's worth out of it.

View Name:Guest
Subject: Like Anti-Virus Software
View Name:Guest
Subject:
View Name:Guest
Subject: Subscription $< Ave iTune monthly purchase
View Name:Guest
Subject: Prime Youth Market less likely to have steady jobs
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Subject:
View Name:Guest
Subject: MS is ignoring history.....
View Name:Guest
Subject: Different Philosophy
View Name:Guest
Subject:
Close Name:TheCiscoKid Posts: 2 Joined: 19 Nov 2003
Subject: Not the end of the world in any case

Even if MS is right, and the sole obstacle to more people using subscription services is that the music isn't portable (I am willing to accept that as one of the major downsides currently), it is not like it would be enormously challenging for Apple to follow suit, and quickly. The iPod has a clock, and I am sure with a little firmware update would be able to handle subscription files just fine. If anything, Apple's own data on average monthly spending by users would help them in determining what the sweet spot would be on the price. I would frankly be surprised, given Apple's less-thickheaded nature of late, if they allowed this to become a success without following suit.

That said, the thing about subscription based services that I never understood is that people sign up to save money over what it would cost to buy outright (I would assume). So inevitably, the company providing the service is giving away more songs for less money, theoretically. Just do the math. If a user is spending $10/month on a service and downloads enough to fill an iPod (10,000 songs), it would take 1,000 months (83 years) for the service provider to get back the same amount of money they would have received if the songs were bought outright. While I know this situation might be extreme, I do think it is likely that subscribers will always download considerably more than they would if they paid outright. It seems to be a model of trying to take less from each customer and making it up in bulk.

View Name:Guest
Subject: the only ones that need to worry...