Blackfriars' Marketing

Saturday, September 16, 2006

Zune won't play content from Rhapsody, Yahoo! Unlimited, Movielink, and others

According to the Electronic Freedom Foundation, a careful reading of Microsoft's Zune press release (specifically footnote 4) indicates that Zunes will not be able to play protected Windows Media Audio and Video files. What does that mean? It means that Zune will provide no choices for content; you either buy protected content from Zune marketplace or are on your own to find unprotected content. Microsoft's own PlaysForSure content, if it is protected as most subscription and rental sites require, won't play on Zune.

I've posted previously that Microsoft is now suffering the fallout from its long string of business errors, so I won't belabor that point. But this marketing decision seems particularly wrong-headed because it is alienating its hardware and content partners -- the very people responsible for paying it the license fees that keep Microsoft's lights on.

I can understand that the Zune marketing strategy is to separate the brand and technology from the overall Microsoft media strategy. But Microsoft is sacrificing the PlaysForSure brand and all the partners that bought into that program (which already was referred to as "might PlayForSure") on the altar of Zune marketing. This may be nothing new from the company that bragged about "cutting off Netscape's air supply", but the difference here is that these were allies, not enemies in Microsoft's digital music business. If I were iRiver, Creative, Samsung, and just about every other music hardware OEM, my marketing VPs would be lining up with pitchforks and torches outside Microsoft's Redmond headquarters asking for the head of J Allard.

Microsoft had better be feeling really good about its new hardware and content businesses. With business partners getting this type of treatment, it's going to have a lot more trouble signing up licensees in the future.

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