Daily "Zune" Update:
The Microsoft Player, Part I: Guiding Strategy
More details are now surfacing on the upcoming, Microsoft-branded portable media player, thanks to continued discussions with inside sources. Over the weekend, Digital Music News reviewed presentation materials given to various partners and top-level executives. The materials offered detailed insights into the strategy, player, software, e-commerce, and marketing aspects of the release. The materials reinforce and expand upon earlier reports, and offer a far deeper and definitive look at the player. In terms of top-level strategy, Microsoft is taking heavy cues from the iPod+iTunes combination, which has helped to propel Apple to its dominant market position. That âiPod killerâ approach that has previously been discussed, though the strategy now appears to be a departure from the well-worn PlaysForSure ecosystem.
Microsoft is aggressively aiming to capture â20 percentâ of the iPod market, a goal that will be assisted by heavy advertising beginning in the fall. In terms of demographic, Microsoft is targeting the "18-28" age range, which skews younger than the âincumbentâ iPod. Part of the plan to attract those users involves a âLive Anywhereâ architecture, which includes WiFi-based sharing, a âwe not meâ community approach, and âconnected entertainmentâ. Driving the project will be the Xbox team and philosophy, which confirms earlier reports. According to recent sources, the player will be spearheaded by âthe team that designed and launched Xbox,â and the âintention is the use the Xbox and the Xbox community as an entry pointâ for the upcoming release.
The Microsoft Player, Part II: Device Details
The Microsoft-branded player has been heavily discussed within the blogosphere, and a large amount of speculation has focused on WiFi connectivity. Executive sources to Digital Music News have also pointed to those capabilities, which will enable "close range, face-to-face sharing." But there are limitations to the experience according to the latest information. Sharing can only happen between a maximum of ten different people within a WiFi range, and the experience centers around streaming content. If a user wants to purchase shared material, tracks can be bookmarked and later purchased when the device is synched to the computer. Unclear is whether users can share unlicensed MP3 content, though they probably will not have that ability. Meanwhile, interesting community aspects will be embedded into the device, including features like friends lists.
The wireless capabilities are designed to woo a younger crowd, though price points could scare them away. According to the sources, the device will offer 30GB of storage, though it will deliver the "same pricing, look and feel as the 60GB iPod". That would suggest a retail price of $399, the price point for the high-end iPod. Immediately, the sticker is likely to draw comparisons to the comparable 30GB iPod, which is available for $299. In terms of outward look, recent information points to three different colors, and a duotone approach on each. A scroll wheel will sit beneath an oversize screen, and menu options will include "Music," "Video," "Pictures," "Community," "Extras," and "Settings". Wireless synchronization with the PC will not be available in the upcoming launch, scheduled for November in the United States. A global launch will begin next year, starting with Great Britain and Canada, according to the sources and materials.
The Microsoft Player, Part III: Software & Store
Software is an incredibly important aspect of any digital device release, and Microsoft is now aiming to create a powerful one-two punch. Guiding the approach is a "closed ecosystem paired with a branded device," which essentially describes iPod+iTunes. But that approach is fairly inconsistent with the PlaysForSure architecture, which attempts to offer flexibility between a wide range of WMA-compatible MP3 players and digital download stores. And with the upcoming release, Microsoft appears to be taking a departure from that philosophy. According to the latest information and sources to Digital Music News, the newer ecosystem will be "incompatible with other Windows Media services," placing the focus squarely on one device, and one jukebox and store. Also, the sources pointed to "Xbox and PC connectivity," part of a larger plan to engage an energized gaming audience. Meanwhile, community aspects will be an important part of the release, and MySpace will be a guiding a model for some of the social connectivity features.
The music store itself also offers several eye-openers. In the marketing materials, Microsoft mentions that it will deliver "bundling, variable pricing, and subscription" upon launch. The variable pricing aspect is a major win for major labels, especially following an unsuccessful bid to alter the uniform, 99-cent pricing approach found on the iTunes Music Store. Forced bundling is also decidedly non-iTunes, and will be used by labels to counter a cherry-picking revolution among digital consumers. Meanwhile, subscription will be offered, though it will be downplayed. According to a source, the subscription aspect will be positioned "like just any old feature," instead of being "a consumer offer that defines a service" like Napster or Rhapsody. Video aspects will be layered into a future release.
The Microsoft Player, Part IV: Marketing & Advertising
As mentioned previously, the Microsoft-branded player will be accompanied by a massive advertising campaign. That will give Apple its first serious stab of marketing competition within the portable player realm. According to sources and documents, the campaign will feature a "grassroots component," and not just a "top-down" approach. In terms of size, the marketing campaign will be "equivalent to the launch of the Xbox," beginning with a fall splash. And the Xbox community itself will be an important starting point for the campaign. Upon launch, Microsoft will create an impact though a "7 cities in 7 nights" tour, which will involve big-name artists, key cities, and live performances that will be exclusively positioned as downloads "on the web and music store". Throughout, the messaging will be focused on the "device plus store". Big box retail outlets will offer a nice push. Sources note that the device will be âoverwhelmingly sold at Target, Best Buy, and Walmart,â and nearly 30,000 retail outlets across the US. A Super Bowl spot is also reportedly in the works.
Story by news analyst Richard Menta.
Source:
digitalmusicnews.com