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Apple Adopts Windows Media for iTunes, iPod

by , 5:00 AM EST, April 1st, 2005

In a surprise move, Apple Computer announced Friday, April 1st, that it was licensing Microsoft's Windows Media platform for use with both the iTunes Music Store and the company's market-leading iPod music player. Apple will be replacing its proprietary FairPlay DRM scheme and AAC codec with Microsoft's Janus platform, allowing the company to leverage the more open nature of Microsoft's Windows Media platform across its burgeoning consumer electronics product line.

In addition to managing a la carte downloads from online music stores, Janus has the added bonus of allowing music lovers to take rented music with them in Windows Media-supported devices, something that has helped Napster become the #2 online music service. By licensing Windows Media and Janus, Apple will be able to follow in Napster's footsteps, and the company plans to open a rental section in the iTunes Music Store.

iTunes users will have the option of converting all of their songs to Windows Media in an upcoming update to iTunes, and iPods will be converted to Windows Media players in a firmware update due later today.

More Choice, and changing momentum

One factor in bringing Apple to Microsoft's trough has been the changing landscape in the online music industry. Apple's iTunes Music Store has, by some estimates, some 90% of the market in legal music downloads, but replacing AAC and FairPlay with Windows Media and Janus gives Apple access to 100% of the market.

Microsoft has worked hard to show customers that having access to more choices in digital media devices and online music stores is better than having access to many consider to be the best music player, the iPod, and the top online music store, the iTunes Music Store.

Microsoft's 'More Choice' campaign has had an impact on Apple's sales, and Apple wanted to jump on the Microsoft bandwagon in order to keep pace with these changing tides.

"Microsoft has scored a success with consumers with its 'More Choice' campaign," Apple vice president Phil Schiller said in a statement. "Our customers have been letting us know that they expect that choice from Apple, and partnering with Microsoft seemed the best way to achieve that."

Six ways to punch you below the belt

Sources close to the company admitted to TMO that Microsoft had also hit Apple where it hurt with its "Six Tips for Buying an MP3 Player with Flash Memory" tip sheet for consumers. The Six Tips offered consumers a guide to selecting a music player that meets their needs, and emphasized some of the many features and benefits found only in non-iPod, Windows Media devices.

"That was just genius," said one source, who requested anonymity. "You'll notice that they didn't even mention the iPod once. Once a potential customer sees that, they're sold on an iRiver, a Dell DJ, or whatever. We couldn't compete with that, but thankfully Microsoft was willing to help us out."

In an interview with The Mac Observer, Apple CEO Steve Jobs pointed out that Apple was doomed as long as it tried to go-it-alone, and that the time had come for Apple "to do the right thing" for its customers and shareholders.

"We've had a pretty good run so far, you'll have to admit," said Mr. Jobs, "but let's face it: This is Microsoft we're talking about. Everyone knows they get it right by the time version 3.0 rolls around, and it was only a matter of when before our time in the limelight of success was merely dust in the wind."

He continued, "Why take chances? This way we can keep our customers while letting Microsoft have all the headaches of managing customer expectations and problems. That stuff was killing our margins."

When asked if Apple had always intended to adopt Windows Media as the platform controlling iTunes and iPod, Mr. Jobs declined to comment.

Observer Comments

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View Name:Guest
Subject: Apple Adopts Windows Media
View Name:Guest
Subject: Yeah yeah yeah.....
Close Name:macbones Posts: 23 Joined: 15 Jun 2004
Subject:

HAHAHA. April Fools. . .

Close Name:ireid2k Posts: 125 Joined: 07 Apr 2003
Subject: April Showers

LOL. Funny one. Had me going for a minute there! Kinda irresponsible reporting not to follow up soon after with ' Gotcha!' hehe.

Close Name:Mom Posts: 8 Joined: 11 Mar 2005
Subject: I Hate To Break Up The Fun

Actually this is intended to be a test from Apple cleverly disguised as a April Fool's joke. Apple is testing the consumers. If there is a positive response, Apple is going to go ahead with it. And if Apple goes with it, so must you Mac pupils!

View Name:Guest
Subject: 5 out of 10
Close Name:ben sanders Posts: 70 Joined: 17 Nov 2004
Subject: Re: I Hate To Break Up The Fun

Quote
Mom wrote:
Actually this is intended to be a test from Apple cleverly disguised as a April Fool's joke. Apple is testing the consumers. If there is a positive response, Apple is going to go ahead with it. And if Apple goes with it, so must you Mac pupils!


So is it true or not?

Close Name:gopher Posts: 273 Joined: 28 Mar 2002
Subject: This may be true, if enough people sign

http://www.apple.com/feedback/

That's where you want to cast your vote.

Close Name:Halix Posts: 38 Joined: 03 Sep 2004
Subject: Nice try :-)

But I was already awake enough not to believe it for more than 10 seconds…

View Name:Guest
Subject:
Close Name:Wings Posts: 88 Joined: 30 Mar 2004
Subject:

I leaned way towards the screen, eyes bugged out, re-read it once or twice, then realized.... You had me for a few seconds. Good one.

Close Name:sparkbank Posts: 9 Joined: 03 Feb 2005
Subject: That was just plain wrong!

Please don't take advantage of us "barely awake" folk. I know it's April fools, but that was just plain wrong.

Argh.

View Name:RealityCheck -   Troll Posts: 392 Joined: 06 May 2004
Subject: Apple Won't Give Up Closed System, Market Share Decline
View Name:Guest
Subject: grow up
Close Name:klaatu Posts: 28 Joined: 23 Jul 2003
Subject: Funny....

heh. This was very funny. In my not-quite-awake-yet state I almost did a double take. But RC's comment made it even funnier. It just doesn't get it...


Off to find coffee.

Close Name:Mace Posts: 9186 Joined: 07 Aug 2003
Subject:

Hell froze over.

On a serious note, iTMS is HUGE for Apple if it can capture over $10 Billion sale per year. The cash flow from it would make Apple very rich. The few pennies earned from each song are just loose change.

View Name:Guest
Subject: Sheesh!
View Name:Guest
Subject: "Professional Journalism"
Close Name:Aftermac Posts: 42 Joined: 25 Sep 2001
Subject: Sorry, too late, already got fooled once today...

There was a report that by a radio station here in Detroit that Pistons coach Larry Brown had stepped down and was replaced by Michigan State head coach Tom Izzo. After an hour (I was in my car so I couldn't check online), just as I was starting to buy into it, they said it was just a joke...

I'll be a bit more alert the rest of the day...

Close Name:jimothy Posts: 597 Joined: 04 Jun 2004
Subject: Great news!

Thank God, it's about time! Now all the shuffle needs is a stop watch, and it'll be perfect!

View Name:Guest
Subject: Cool Now I can buy an iPod
Close Name:wingventure Posts: 3 Joined: 04 Feb 2005
Subject: RC = Really Crazy

Quote
klaatu wrote:
heh. This was very funny. In my not-quite-awake-yet state I almost did a double take. But RC's comment made it even funnier. It just doesn't get it...


Off to find coffee.


Sorry, couldn't come up with a better interpretation of the initials...

He just can't stand the reality of a stock that quadrupled (more or less) in the last year and all of the "ooh, I can find you a stock that will double" newsletters couldn't find.

In a more somber note, I just hope that the Catholic pope doesn't die today. It would be too cruel on him.

Of course, there are always those people who are born today...

View Name:Guest
Subject: Got me
View Name:Guest
Subject: Good one..
View Name:Guest
Subject: What would make a really good April Fool's Joke ...
View Name:Guest
Subject: Seriously
View Name:Guest
Subject: Momentarily thrilled
View Name:Guest
Subject: Tiger last Mac OS
Close Name:RealityCheckup Posts: 29 Joined: 15 Jul 2004
Subject: wow RC i didnt know you were this stupid

i cant believe RC actually made that post. Even though he's gone pretty far in the past, I really can't believe that he doesn't know an april fool's joke when he sees one.

how can mac market share "continue" to decline when it's not declining. almost all the analysts predict some kind of market share growth and most predict a gain of at least a percentage. Plus thinking that the popularity of the iPod is going down is totally absurd epecially with the release of the ipod shuffle, which will further expand the sales of the itunes music store

Close Name:jdearr Posts: 341 Joined: 30 Dec 2003
Subject: Like a flood

I have an Apple category on Google News and here is a sample of some of what's there today:

Apple Hires DVD Jon
Apple founder Jobs joins IKEA
EU bans sale of Apple Macs
Tiger Woods signs long-term deal with Apple Computer as Mac OS X
plus the TMO WMA story

Happy holiday

View Name:Guest
Subject: 'Alrighty then...'
Close Name:Tiger Posts: 971 Joined: 17 Jun 2003
Subject:

Quote
RealityCheck wrote:
Why give iLemmings choices. Based on the success of keeping the Mac a closed system (less than 2% market share), Jobs takes the brilliant strategy to the Music business. Watch Apple's share of the online music business continue to decline with frenetic Macdroids claiming the low quality iTunes music is the best.



Continue to decline? What are you smoking? General Motors has already announced to include the iPod interface in all their top end models next year with an eye on their ENTIRE line of cars to follow.

And with sales of iPods continuing to GROW, not decline, Apple would have/doesn't have any incentive to mess with their model now.

So, please exercise your choice. GET THE HELL OFF THIS BOARD. You don't contribute to dialog, you degrade the human race.

Close Name:Bryan -   TMO Staff Posts: 7332 Joined: 11 Jun 2001
Subject: Re: Got me

Quote
Anonymous wrote:
That was pretty well done. I was gullible enough to read along, thinking, "this is really a big change!" Until I saw that Steve Jobs was giving an interview to TMO and talking about "dust in the wind."
Quoting Kansas songs: obviously something fishy.
Steve Jobs giving an interview to TMO: no disrespect, but that in itself raises a flag.
anyhow, good one.


View Name:Guest
Subject: Hi Mom!
View Name:Guest
Subject:
Close Name:Small White Car Posts: 1960 Joined: 02 Jul 2004
Subject:

Quote
Anonymous wrote:

RC was talking about market share of Macs(computers), moron, not iPods.


Actually, it was neither of those. He was talking about the online iTunes store.

View Name:Guest
Subject: You bastards! I just bought a Mini iPod!!!one!
View Name:Guest
Subject: Re: Hi Mom >:0)
View Name:Guest
Subject: um...
Close Name:Burnum -   TMO Staff Posts: 789 Joined: 17 Jun 2001
Subject: haha

i always get a kick out of TMO's April Fools ones.

Close Name:Kodac Posts: 16 Joined: 17 Aug 2002
Subject:

Finally! Thnk you TMO!

Only other April Fool's item I could find out of the places I go to normally was Google and their Google Gulp.

View Name:Guest
Subject:
View Name:Guest
Subject:
View Name:Guest
Subject: RealityCheckBounced
Close Name:jdearr Posts: 341 Joined: 30 Dec 2003
Subject: Here's another one

Apple Announces Product and Marketing Plans

Close Name:Bryan -   TMO Staff Posts: 7332 Joined: 11 Jun 2001
Subject: Re: Here's another one

Quote
jdearr wrote:
Apple Announces Product and Marketing Plans


I may steal that one for next year.

Bryan
Editor
TMO

View Name:Guest
Subject: DOH!!
Close Name:mrmgraphics Posts: 825 Joined: 05 Sep 2003
Subject: TMO's WMA article now in Forbes

+

Lending credibility to this particular April Fool's prank, Forbes is now running with the story:

Forbes Link

View Name:Guest
Subject: RC
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