Zune is set to be released tomorrow, Nov 14th. Though Microsoft has been criticized for releasing a device that further divides the portable music player business, signs are hopeful for Microsoft’s market penetration.
Criticisms levied at Microsoft’s new toy look something like this:
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Not sexy enough - boring flat brown instead of the cool chocolate tone of LG’s latest phone.
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Priced too high.
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Bad business to jump into a competitive / mature market already dominated by Apple
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Not PlaysForSure compatible - subscriber services are screwed
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Hardware profit sharing paid to Universal Music is underhanded and /or bad business
Microsoft is about to see whether or not the criticisms are founded. But remember the truism in the consumer electronics business whether you’re talking about Microsoft’s Zune, Apple’s iPod or even RIM’s Blackberry:
“It’s not about the hardware.”
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It’s about providing an indispensable service.
Microsoft is going to test Zune Marketplace using two media sales paradigms. Both Apple-style .99 cent song downloads and a music service offering unlimited downloads for a monthly fee.
But the best indication that Microsoft has produced a worthy rival to Apple’s iPod is the survey that suggests iPod owners are willing to switch to Zune in droves.
A recent survey polled 1,725 US adults and teenagers who planned to buy a portable digital media player in the next year. Only 15% of iPod owners said they’re “not very likely” or “not at all likely” to switch to Zune. Hopeful numbers if your Microsoft, and a bit scary if you’re Apple.