Zune Sings the Blues
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News Analysis. It's Monday and I'm feeling contrary, which perhaps is why the Zune refresh looks good to me. There's even a little iPod-smacking innovation. |
Microsoft hadn't planned on announcing new Zunes until next week, but pesky retailers let out too much information over the weekend. Could they have been in a rush to sell new models? Maybe. Among the new Zunes is a 120GB model and, get this, blue. I love the blue Zune.
Zune is the unexpected blog star today before Apple drops the iPod supernova tomorrow. Apple is expected to revamp its music player lineup during an early afternoon event. It's best for Microsoft to talk Zune today because the music player could be oh-so yesterday come tomorrow.
That's too bad. Zune gets whacked around too much by bloggers and reporters for not being iPod and for coming from Microsoft. But Zune is an excellent music player that's getting a whole lot better.
I'll begin with the most important news: Zuners, Microsoft loves you. Like with last year's hardware and software refresh, Microsoft will provide new features to old Zunes.
"All these updates haven't punished our existing customers in any way," Brian Seitz, group marketing manager, told me this evening. "They get to take advantage of these new features. In this other world," he said referring to iPod, "you have to pay top dollar to get that premium experience."
How true. Apple's approach is about coolappealing to buyers' aspirations to have the hottest device. But buying cool means buying new and forgetting the old. Typically, there is limited, sometimes no, backward compatibility among older models and revamped replacements. It's not unusual, like with iPhone 3G, for an Apple device to be incompatible with peripherals people had purchased for the previous-generation product. By comparison, first-generation Zunes will get the same features as the newest models now on sale.
Models and prices:
- 120GB; $249.99 (new model)
- 80GB; $229.99 ($20 price cut)
- 16GB; $199.99 (new model)
- 8GB; $149.99 ($50 price cut)
- 4GB; $129.99
Microsoft is retiring Zune 4 and 80, and supplies are already limited. I think it's risky for the starting price to be $150. Surely Apple will come in lower with new iPod nanos (or their replacements) announced tomorrow.
Besides the delightful blue, there is a new black-on-black color, meaning glossy front and matte back. That means black is the new black. Zune also will be available in red and pink. Microsoft has retired green.
New Zunes started arriving in the channel late last week, but they weren't supposed to go on sale until Sept. 16. However, some retailers couldn't wait; from today, all partners can sell new Zunes but, technically, price cuts don't take effect until next week.
September is a much earlier release time than the first two Zune iterations in 2006 and 2007. "We didn't do ourselves any favors releasing during the first couple weeks of November," Brian acknowledged. This year's release cycle is better timed for holiday sales.
Zune Turns Three Dot Oh
Most of the innovation comes in Zune software and firmware or features they enable in the hardware; new firmware and Zune Marketplace 3.0 software will be available starting Sept. 16.
What's new? For starters, Wi-Fi purchasing from the Zune Marketplace, which is sure to get iPod trolls frothing and wagging their fingers in accusation: "Copycats! Apple had a mobile music store first." Maybe, but Microsoft isn't copying Apple.
Wi-Fi purchasing is meant to complement the new "Buy from FM" feature. Many FM stations broadcast Radio Data System and RT+ data feeds that identify the song, artist and other information. Zuners can tag songs as they listen to the music player's built-in radio. Zune users can then purchase, download or stream the music over Wi-Fi hot spots. Streaming and nonpurchase downloads are available to people with Zune Pass monthly subscriptions.
Brian described Zune as "the first MP3 player to take advantage of those feeds in a compelling way."
But there is a major limitation, which is sure to send iPod trolls bouncing with excitement. "It doesn't work with a browser hijack," Brian said, referring to hot spots that require a Web browser to complete the authentication process. Both iPhone and iPod Touch come with browsers. Zunes can connect to hot spots or home wireless networks that use WEP keys. But there is no browser authentication. "We're looking for ways to extend the reach of that capability," Brian said.
Microsoft developed Buy from FM based on research showing how people discover new music. "The primary methods are their friends or FM radio," Brian said.
Some of the other new features:
- Channels, which is included in Zune Pass subscriptions and is a hodgepodge of music recommendation sources, such as the Billboard Top 100 and Fader magazine.
- MixView, which uses related information such as music influencers and like artists to guide users to new musicians and songs.
- Personal Picks, where the Zune software recommends artists and songs based on listening habits.
Something else: Can't spell? "We've added in some predictive typing both within the marketplace and in your collection," Brian said.
I asked about Zune Originals, wondering if Microsoft would continue with the engraving service. Yes. "With little outbound marketing, that site has done very well," Brian said.
There are lots of people who will compare new iPods and Zunes tomorrow. But, contrary to conventional wisdom, Zune isn't trying to be iPod. Microsoft's target demographic isn't the iPod user.
"There's a growing segment of folks out there that are looking for something different," Brian asserted. I'm one of them. What about you?
[Please send your tips or rumors to watchtips at live.com].


Comments (23)
Still 3 to get it right for Microsoft? I don't think so. Zune is another example of M$ wasting money on a fight that's already over. Nice to see those monopoly margins for Windows and Office being put to such good use.
Posted by Phil | September 9, 2008 7:28 AM
By that logic Apple should just get rid of the Mac line. I mean the desktop wars were won over a decade ago. But the fact remains the Mac is a viable platform and Zunes are a decent media player. I own an 80 gig model and see no reason to rush out and buy a new one at this time. It is nice to see that they plan to continue competing in this arena though.
Posted by Mike Dees | September 9, 2008 7:36 AM
You're right, the Mac should have died. It was rescued by Microsoft to avoid further antitrust problems with the government. Then Apple got lucky when Microsoft, after staring into it's own navel for six years, produced something as weak as Vista. Apple's not standing still with iPod. The music player game is over.
Posted by Phil | September 9, 2008 8:31 AM
That's one way of looking at it.
Here's another. Choice is a good thing. More competition equates to better products and lower prices. Without Apple and open source as viable choices Microsoft wouldn't be looking into ways to improve Vista and their next OS. iPod has market dominance and that's fine, but if it never has any competition you can expect innovation and performance to go out the window.
Posted by Mike Dees | September 9, 2008 8:48 AM
So to summarize, there are loads of new features to help you buy stuff from them, plus it comes in different colours.
Its funny that Zunes original target was the iPod, but as soon as the iPod Touch came out they are suddenly aiming at a totally different audience. Isn't the audience for BOTH machines 'people who listen to audio while moving around'? If Apple is for people who want the coolest, then Zune is for people who want something dorky and uncool? I can see the ads now 'Zune... Its cheap and not the best, it comes in Pink but it is not cool!'
Competition is good, but not when they openly give up competing.
Posted by billybob | September 9, 2008 9:30 AM
Apple are masters of marketing pseudocool to wannabes; and the teen market is a highly conformist group that wants the same brands as all of their friends.
On the other hand, Sony Walkman was once considered to be unbeatable.
In any event, it's nice to see that Zune keeps getting better.
Posted by JohnJ | September 9, 2008 12:01 PM
phil, actually zune 1.0 was already better than ipod at the time. things like wireless built in, large form-factor screen, rotating the screen to watch movies / pictures in widescreen format are just a number of things apple took from that early incarnation for it's high end devices.
and what has microsoft taken from apple, other than the core functionality of a media player? other than previously loyal fans, not a lot? since 2.0 the zune has only gotten better and better, leaps and bounds, unlike apple's fairy-step-like progression which isn't backwards compatibility.
i'll applaud apple for the ipod touch / iphone. it's a great platform for those that can afford it, want a large device, and like an entire touch interface. sadly most people want none of those things from a music player, and for each of those microsoft, sandisk, and creatire are catering to their every whim whilst apple leaves them behind.
i wouldn't even argue that the teen market is pseudocool wannabes, as jonhj points out. back in the day it was a split between that type, and the savvy unique person that set trends.. i'd even say this type is more prevelant these days.. the stylings of the software, marketplace, and the device are certainly more 'cool' than apple's offerings at the moment.
anyway, i know this is microsoft watch, so some bias should be expected, but it's good to see the blogsphere responding more and more positively with each new update of zune. good work.
Posted by jrb | September 9, 2008 12:22 PM
My impression is that this is a dying niche market. Seems like good music playing is built into all cell phones now (including download from PCs). Seems like all the teens are just playing their music off their cell phones. Why do you need to carry around two things?
Apple will transition entirely to the iPhone line. MS, who knows?
Posted by smist08 | September 9, 2008 12:48 PM
Phil, I'm not sure why this has to be a war with a winner and a loser. Why can't people have preferences, just as they do with TVs, stereos, or any other consumer product?
I absolutely love my Zune - it's one of my favorite technology products ever. I don't compare it to iPod as I've never owned one, and don't really have a basis to comment about the iPod. But that Zune is an awesome music player, and that's what I bought it for, so I'm happy.
Wait, I just thought of a comment - as a Zune owner, I'm glad MS is giving me the update for free. I'd be angry if they obsoleted my 4-month-old player, just as I'd be angry at Apple if I felt pressured to buy a new model while the old one was still working. It's pretty tough to argue that always getting the current software and firmware without buying a new model is a bad thing.
Posted by DaveN | September 9, 2008 12:48 PM
"Microsoft is retiring Zune 4 and 80, and supplies are already limited."
Not if you shop at BigLots or Overstock.com.
LOL
The new 120s will be there by Christmas, probably for $149. Steve Ballmer's little "gift" to MSFT shareholders.
Posted by Jane | September 9, 2008 1:29 PM
The Zune 120 is available now from Amazon for $249 - on my wish list.
I'm not interested in the iPod...well, maybe the Shuffle for the kiddies.
Posted by Darrick | September 9, 2008 7:26 PM
I don't have problem with competition. But I do have a problem with Zune supporters claiming Zune increases competition. Seems to me, Zune has pushed Creative and Archos down, reducing competition. I also have a problem with Zune marketers claiming they're in some market outside of iPods that is growing when they haven't grown market share even after expanding to the Flash market that represents 60% of Apple's market (Zune remains at 2.6% of the DMP market).
Posted by Tim F. | September 10, 2008 12:36 AM
Wow, that is a bizarre definition of "reducing competition", Tim. As far as I see, Creative and Archos are still making audio players. That they're competing with MS now does not mean competition has been reduced. Competition is higher, as they are all fighting harder for the same market. For competition to be reduced, there actually has to be a drop in the number of companies making DMP. Not just that it gets harder for some companies to sell their player. Otherwise Apple would be far more guilty of reducing competition.
Posted by Wes | September 10, 2008 1:49 AM
Wes, you have a pretty juvenile sense of competition. When companies are substantially weaker and lose a huge chunk of their market share because they were dependent on Microsoft's support of an ecosystem, competition is decreased, not increased just because you've added another weak player. And yes, Apple has been blowing away and eliminating competition -- but Apple isn't saying they are helping competition either. Microsoft probably is unique as a powerful competitor to iTunes/iPod, but looking at the stats, where iPod's marketshare has remained unchanged (except for the statistical blip up or down), Microsoft has remained unchanged, and everyone besides SanDisk has decreased substantially -- there's no way to read that as increased competition.
Posted by Tim F. | September 10, 2008 2:41 AM
Zune is doomed. Why?
Quote from a group of my daughter's tweener friends:"Apple makes the cool stuff and Microsoft copies them."
Posted by just a drone | September 10, 2008 8:48 AM
Give it a break... My kids both have Zune players. Both are 1st gen 30GB, and why buy new (which is the measure of iPod success) when they will get Ver 3.0 for FREE! The sound quality is better than most, the video clarity is the best, the software and support kill the static iPod!
Regardless of your Loyalty to the MAC Throne, you gotta respect a company that keeps your old device current! When has Steve given you mac faithful a break?
Posted by DougR | September 10, 2008 1:07 PM
DougR, you got it right man!
I don't know why there's so many iPod lovers out there. The only thing apple did well with the iPod was nice asthetics, but besides that they don't offer any great functionality beyond most other players, especially zune. The only problem Zune has is overcomming the uninformed perspective of a bunch of iPod users. But in reality, the Zune is better, higher quality and offers more functionality. Anyone with a modicum of logic can see that.
Posted by Jer | September 10, 2008 3:23 PM
I don't know why there's so many Windows lovers out there. The only thing Microsoft did well with Windows was VB, but besides that they don't offer any great functionality beyond most other operating systems, especially OS X. The only problem Apple has is overcoming the uninformed perspective of a bunch of corporate IT guys. But in reality, OS X is better, higher quality and offers more functionality. Anyone with a modicum of logic can see that.
Posted by Flipper | September 10, 2008 4:03 PM
Well, Flipper, I don't remember saying anything about Windows. But we understand that you that choose to live in a limited box with someone else running your world can't see the forest for the trees. I perfer to pick my hardware a piece at a time, run ALL of my apps (old and new), have the support of the majority, and enjoy the security and reliabiltiy of my creation. And if you're curious, I use Vista Ultimate 64 and have NEVER had a crash, blue screen, etc etc. Not a big fan of OSX, and never will be... but to each his own. If I were (and trust me there are no plans) to switch, I would pick LINUX over any MAC. I'd at least have my pick of ANY hardware!
ADDED BONUS: I am fully compatible with ALL my software at work!
Posted by Dougr | September 10, 2008 4:17 PM
Joe;
With the latest news of the disastrous Apple release of the iTunes 8.0 that is attempting to cause many to suffer on Vista the BSOD has been proven due to some pretty terrible code writing as told on ZDNet -- Perhaps some people will take a look at Zune and go in that direction.
I have an iPod and after downloading the crapware from Apple for Windows, though I personally didn't have a problem with the BSOD, Apple loaded some crap that I didn't have any use for and removed everything. WinAmp has a wonderful, fast, and very stable add-on to manage iPods, Zunes, or whatever.
Just thought I throw this bit of information into the ring...
Posted by Douglas S. Taylor | September 12, 2008 12:09 AM
Am I missing something here? Doesn't the 2.1 update work on 1st Generation iPod Touches as well as the new generation just like Apple did with the iPhone and iPhone 3G? Where is this lack of support for early adopters that you guys are talking about? I still have my 5Gen iPod and it works fine even with iTunes 8. No problems what so ever, and about the screen, I'm understand that the resolution is the same as the Zune but MS decided to use a bigger screen with bigger pixels. That doesn't make it better. In order for MS to move away from DOS they had to hire Digital's VMS developers, that is how WNT came to be. So Windows New Technology was really VMS old technology purchased, just like Gates originally did with DOS. Microsoft: No culture No Innovation. Internally, and you can Google this if you want, the original Zune and the Nano were basically using the same chips. Pretty interesting right, especially since the Nano came before the Zune. Lastly, can someone explain why Microsoft uses points instead of easy to understand dollars and cents in the MarketPlaces?
Posted by eon | September 15, 2008 2:35 AM
Douglas, AFAIK, when the Zune was release it was incompatible with Vista, also did Microsoft release a converter for PlaysForSure music purchases so that they could be played on the Zune? Nothing like alienating your partners and your customers. Give me two reasons why Microsoft does not suck? They should just buy Solaris from Sun and call it Windows 3000. Or they should go back to designing mice and keyboards. The AmigaOS was light years ahead of Windows and we are talking about a quarter of a century ago!
Posted by eon | September 15, 2008 2:48 AM
I have a Zune80 as well and love the thing. Never had an iPod simply because I'm the type of person that just doesn't like having the same thing millions of others do. My Z80 certainly makes me stand out in a sea of iPods but I wish like hell MS would move faster to include new features and update the device just as quickly as Apple does.
I like the idea of the iPhone but Im a true music lover and carry a 4300 track collection that’s continually growing and won't fit on an iPhone; not to mention that I wouldn't like the idea have having to stop listening to my tunes to answer the phone. I like that MS added the 120g model because unlike most folks who are satisfied with MP3s, I want high quality lossless tracks that give the best experience.
Posted by NPGMBR | September 16, 2008 4:11 PM