The new (developmentally challenged) Zunes - a continuing effort

Microsoft introduced a "new" Zune music player. It includes some "great new features." It is priced at about the prices of the current iPods. It has some interesting WIFI features. But it is still not ready for prime time. The new features were introduced by Microsoft to allow a chance for the "new" player to compete with the iPods. I suspect it will continue to be in the rear of the purchasing line.

I guess the new Zune is a lot like the new operating system which has generated gales of laughter even among dedicated Windoze users. Vista, the operating system that took several years to build which met with an underwhelming consumer response may be the intellectual model for the Zune. Perhaps they could bundle the two products.

That does not mean that Apple should become complacent. The iPod is a good device - the Zune is an OK device - in this case equal does not equal equal. The Zune needs to be better to compete. There is, however, a lot on the horizon. WIFI, which is in Zune and also in the iTouch, seems to be a desirable feature. Amazon is beginning to offer MP3s with a cheaper version of music which is likely to compete with iTunes. NBC has grumped about the pricing of their shows on iTunes. The markets for music are changing. People continue to want something which is simple and which produces a lot of kinds of media. (Books, Movies, Songs, Podcasts) - for my money, at this point, Apple has the corner on the market. But for example when I wanted to get Justice Thomas' new book on audio - I went to Amazon because iTunes and Audible did not carry it. This is a fast moving market. And all of the major players - including Apple - need to think creatively. More stuff means more page views and more sales. Apple does not seem to be as adept as some other carriers in getting things like Justice Thomas' book.

Ultimately, some of the content providers simply do not get the new market. NBC will lose by dropping from iTunes. But Apple will lose at some point if they do not adjust their pricing model as more types of non-DRM music gets on line. Contrary to what the marketing professor at Wharton claimed (on a knowledge at Wharton podcast in which he also argued that the iPhone would not sell well) the future of downloads does not seem to be the subscription model rather it looks like it will be a nominally priced model - 99¢ was right early in the market cycle but those prices may change. The most important thing that ALL providers can do at this point is realize that the old market dominants (the labels and the music licensers) cannot sustain the old model.

But the "new" Zune is still a pale copy of the iPod. (any model)