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yet another Microsoft blogger

# Wednesday, May 11, 2005

Yahoo Music

Here is why Yahoo Music is cool. Yes I work for MSN, and sure I wish MSN Music had this same feature, but I'm super excited that Yahoo Music launched their business. Why? THEY ARE BUILT ON OUR PLATFORM! Let me explain.

A few months ago I wrote this post about Technology Camps. Let me point out my favorite paragraph:

"Now contrast this to Microsoft. For the past few years the focus has been on building a world class platform. From the codec's, to the encoding technology, to the protocol for moving bits from the computer to the device, to the encryption technology, policy enforcement of digital rights, and servers to manage those rights it's all been spec'ed and delivered in a manner that any software developer can utilize. You can create your own Music Store and sell content to anyone with a compatible device. You can build a device that can play rich video and audio. You can build software that can manipulate that music, and organize it for users, or even a new shell that can present that media to the user who is sitting on their couch and interacts via a remote control. You can even buy a cell phone that can consume these media files! Talk about a rich eco system. But that's what it is; a platform for anyone with a desire to build on. Microsoft participates in this eco system via the MSN Music Store, and other various properties, but we do not dictate how much you will pay, and what device you will use. We give you choice, and history has shown time and time again, that choice is always more powerful. Choice and flexibility always wins. Consumers want choice."

A bunch of people made some very valid comments about my perspective on how this all relates to Apple regarding Choice. I'm not going to disagree with them. However, this is so utterly cool because Yahoo was able to build and bring to market their own music store that leverages our platform end to end.

  1. Microsoft Technology for encoding and DRM
  2. Microsoft WMA 192 KBps 2-Pass CBR Encoded files (iTunes is STILL 128KBps AAC)
  3. Janus to deliver subscription audio to PlaysForSure Compatible devices
  4. Sync to those devices via Media Transport Protocol

And they offer this all for the cost of 3-4 music CDs a year with access to their entire Music collection. They are far cheaper than Napster-To-Go which I complained as being too expensive and buggy for my tastes.

Now how much do you want to bet that Apple is going to eventually have to offer subscriptions? I bet that the reason they have not yet done so is because Steve doesn't believe it makes sense.

"Steve Jobs, has dismissed the idea of subscription-based services, saying people want to own their music"

I'm not so sure about that. Me thinks that Apple is going down the exact same path with the iPod as they did with a Mac. They have build a phenomenally successful and wonderful CLOSED ecosystem. Just like the Mac. And we all know what happened there.

Yahoo does things that have potential positive revenue impact. They did not have to spend their resources building a platform, delivery mechanism, tools, services and whatnot to make this happen. They had to licence content, create a user experience and launch it. Anyone can do this.

My iPod is an island. My Creative Zen Micro just had a new bridge built to Yahoo that gives me access to a million songs for 5 bucks a month. Apple isn't competing with Microsoft, they are competing with potentially dozens of companies, and now a big internet media powerhouse.

How do you like them Apples?

Posted Thursday, May 12, 2005    Permalink    Comments [5]  View blog reactions

Tracked by:
"More yTunes Thoughts" (Tom Eppenberger's Blog) [Trackback]
"Death to the iPod" (Techie Musings) [Trackback]

 

Thursday, May 12, 2005 8:44:56 AM (Pacific Daylight Time, UTC-07:00)
Steve is non-commital about subs, an indication he may change his mind:

"We're not religious on this..."

http://www.msnbc.msn.com/id/7775259/site/newsweek/
Taybach
Thursday, May 12, 2005 10:03:40 AM (Pacific Daylight Time, UTC-07:00)
I'm not understanding how the iPod is an island? If I can get the same songs from Napster, Yahoo, MSN Music and iTMS, and I already have an iPod, why the heck would I switch to renting my music? So far Yahoo has said that the only device supported is the Dell DJ -- talk about an island!

What I don't understand about this whole argument is the lack of recognition that most people still buy CDs. I will continue to buy a mix of CDs and digital music. It will take years for all music consumers to make the shift to digital music players let alone online distribution. Since we're technologists, we're embedded in the hype -- it's been the ultimate reality distortion field. Adding in the CD to the equation, the iPod is no longer an island (nor is any other music player).

Based on some job postings on Apple's website, I wouldn't be surprised to see a more open iPod-based platform in the future.
Chris
Thursday, May 12, 2005 11:50:01 AM (Pacific Daylight Time, UTC-07:00)
Yahoo supports any Janus compatible device. There are numerous if you click the link from their web site.

The iPod is an island because Apple is your only choice and there is only once price and one quality (128 K AAC).
Thursday, May 12, 2005 3:39:50 PM (Pacific Daylight Time, UTC-07:00)
"I'm not so sure about that. Me thinks that Apple is going down the exact same path with the iPod as they did with a Mac. They have build a phenomenally successful and wonderful CLOSED ecosystem. Just like the Mac. And we all know what happened there."

The Mac was never "phenomenally successful" and Apple has never had a 70+% market share before so you can't compare those too even if your boss does too according to the news today.

About being open? I don't see your techs on the Mac or any other platform than the - closed - Windows OS.
JLL
Wednesday, May 18, 2005 8:25:07 AM (Pacific Daylight Time, UTC-07:00)
Hmmm...dunno - maybe it's just because I'm not englightened or something - but I *do* like owning my music. iTunes DRM or no - I'm happier with the fact that I've bought something that doesn't die when I stop my subscription. Maybe I'll change my mind later. I'm a consumer - it's allowed ;)
pathoshammer
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