The next generation format wars

The next format wars have started. I�m not talking about the competition between Blu-Ray and HD-DVD because the fate of these two formats have already been decided and plus I have to write this stuff one day at a time. Today, I�m going to focus on DRM (Digital Rights Management). Almost everyone can agree that MPEG4�s AAC codec is the ultimate audio codec next to ogg-vorbis (which never really caught on). The format is not a war between codecs or CDs and DVDs, but between the DRM formats. DRM is what keeps you from sharing URGE and Rhapsody purchases with your iTunes friends. It also keeps songs purchased from the Zune marketplace incompatibly with PlaysForSure music purchased from Napster. This format war is just beginning and the motto appears to be, �win or die trying� and we�ve seen quite a few companies die trying.

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Apple is the dominant leader. Based on market share, Apple�s iTunes Store codec is used by more people than all of the other formats put together. In 2003, the big guys banded together to use one format in an attempt to topple Apple�s rhino of a market share. The DRM created was called �PlaysforSure� and to this day, there are hundreds of players from many manufacturers that support this format and a dozen music stores that you can purchase from to play on these devices. I can purchase a 2 GB Sansa player and purchase music from Rhapsody, Yahoo! Music, and Microsoft�s URGE music store and all of the songs will work on that player. These companies are working together just to defeat Apple while the fruity company is still leading the way.

Microsoft deserted the PlaysForSure codec last month for a new codec that only works with their new Zune player. Microsoft is trying to play catch-up with the iPod and trying to match Apple�s marketing strategy. What they�re missing is the philosophy behind their �complete solution� marketing campaign. Apple created a player almost seven years ago called iTunes and everyone fell in love with it. Five years ago, Apple released the first iPod and more users hopped on board. Finally in 2003, Apple released the iTunes Music Store and a subsequent Windows version of the store and immediately their market share shot up. Microsoft is starting with the player and building a solution around that player. Their store is pitiful in terms of design, the setup process is painful and the Zune doesn�t even work with Microsoft�s Windows Vista OS and to top it off, you can�t use Windows Media player with the Zune, forcing you to use Zune Marketplace to manage all of your music.

The Zune is not any better than the iPod. The latest full size iPod has better battery life, is smaller, and has a much larger catalog through the iTunes store. To top it off, the iPod is priced the same as Microsoft�s Zune player and gives you 10 more gigabytes of storage. Microsoft failed long before the 2006 holiday shopping season and sales show that the Zune just doesn�t have the momentum to make a dent in Apple�s market share. Who will win this battle? Many DRM codecs have risen and fallen and right now are three formats competing for the top seat. Apple�s PlayFair, Microsoft� PlaysForSure and Microsoft�s Zune format are the current contenders. We�ll see how things worked out but I hope in 2010 that we�ll all stop fighting and just accept that Apple is the winner in this race to the top.

I just can't fathom why a company would release a DRM like PlaysforSure and then turn around and release a player that doesn't support it. I imagine there are countless people who are ignorant enough to not know, or ignore this slap in the face and buy the player. I wonder what happens to all those who purchase the Zune and tons of music only to see it disappear in a year or so along with all of their compatibility. I have faith in Apple providing compatibility with their players as they have shown a pretty good trend so far. With Microsoft's track record within the past year there is no way I could drop $200+ on a player that may or may not even work with my computer and music!

Agreed. It is a poor way to do business. How can we trust MS to not purge zune marketplace in two years for a new product with the marketing campaign of

Welcome to the "rip-off"

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