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.
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!
Shame though that they couldn't find a more original twist than simply re-playing all the predjudiced media FUD perpetuated by the likes of Thoroux. Especially as the originals are considerably funnier, imaginative and way more mythical.
Spy
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!
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.
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.
Man, I knew better than to turn on the Radio today, my local station has claimed to switch to Disco. The local Rag is claiming stupid things and it would appear that Bryan is with them. So much for professional journalism.
I had a professor in college who stated that the best day to attack America would be April 1st. No one would believe it just long enough for it to give the advantage to the aggressor.
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...
Finally Ipods will have the ability to use cheaper music options and high quality music files offered by all the non-itunes store.
I love the ipod, but didn't like how it was crippled by only one online music store. Steve Jobs doesn't know how I like to listen to my music, at least Bill Gates lets me have some choices
This is so cool!!! Now if I could get OSX for my PC!! I could be and Apple Fan without giving up any choices!!!
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...
CloseViewName:Guest Fri Apr 01, 2005 11:08 amSubject: Got me
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.
is if the Macintosh news sites (not the rumor-mongers), all agreed on a fib to perpetuate on April 1st so that readers would see it in different places. I envision mass hysteria.
When I read the article's headline, I was momentarily thrilled, but knew it had to be a joke on this particular day. It'd be nice if the iPod supported WMA (and its associated DMA) so I could easily listen to the thousands of electronic books available for "checkout" and download from the Seattle library system. As pointed out in an earlier article this week, the library buys X copies of an electronic book. Because the DRM scheme allows a book to expire after three weeks, it's a cinch for the library to ensure that only X number of people have the electronic copy of the book checked out simultaneously. I'd like iPods to support WMA/DRM just to have free access to this huge library of electronic books.
Steve Jobs also said in his interview that Tiger would be the last Mac OS. Explaining that it's just too much bother to continually update, he stated that Apple would be selling the very, very good Longhorn included in a new very, very fast version of Virtual PC.
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
CloseViewName:jdearrPosts: 341Joined: 30 Dec 2003 Fri Apr 01, 2005 12:34 pmSubject: 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
WMA support on the iPod wouldn't be a bad thing due to opening the door to other sites for music but letting Microsoft into the ipod? Unacceptable. Apple has done an amazing job for 29 years now. Don't let Microsoft ruin it. I'm thrilled about Apple's B-day today and I look forward to the announcement of 10.4 today as an official release date draws closer. The only reason to use office is ignorance (no offence) considering you can open / view those files if you are required to for work / school with Open Office (http://www.openoffice.org). I say keep Microsoft out at all costs. Remember the ADC last year? "Redomond we have a problem!!!" Go Steve!!!
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.
CloseViewName:Bryan- TMO StaffPosts: 7332Joined: 11 Jun 2001 Fri Apr 01, 2005 12:43 pmSubject: 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.
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.
RC was talking about market share of Macs(computers), moron, not iPods.
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.
I understand your logic, but your argument is wrong. GM is adding an auxilary input on their car audio systems. It's a 1/8" miniphoto jack, there's nothing iPod specific about it. GM is just trying to capitalize on the iPod's success by mentioning the word "iPod" every time they talk about it. Saying that this is a sign of iPods growing is pretty ignorant.
I'm not saying iPods aren't taking the market, but if you're going to argue it, argue it with appropriate facts.
I understand your logic, but your argument is wrong. GM is adding an auxilary input on their car audio systems. It's a 1/8" miniphoto jack, there's nothing iPod specific about it. GM is just trying to capitalize on the iPod's success by mentioning the word "iPod" every time they talk about it. Saying that this is a sign of iPods growing is pretty ignorant.
I'm not saying iPods aren't taking the market, but if you're going to argue it, argue it with appropriate facts.
Sorry, I meant to type "miniphono", not "miniphoto".
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.
Yes it's true, the Windows crowd have many, MANY choices in the MP3 market and theyv'e chosen iPods and iTMS as their choice. Thank you for supporting our favorite computer company with your hard earned cash.
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