MSN Mobile Music: Worst idea ever?

Now here's a recipe for success: Take a brand that your parent company's been on the verge of abandoning for the last four years. Slap it on a new music download store for mobile phones. Encrust all the tracks with DRM, even though the rest of the music download industry is finally moving away from DRM. Make sure that the downloads are tethered to the user's handset, so they can't keep them when they upgrade phones in a year or two. Charge more than the competition. Then, when questioned what the heck you could possibly have been thinking, blame a business partner who's actually running the store for you!

On the same day Microsoft announces its first-ever major layoff, the company relaunches an MSN-branded download site for mobile phones in the United Kingdom. Huh?

That's what Microsoft has done with Thursday's launch of MSN Mobile Music, a new part of the U.K. version of its MSN Mobile portal. The MSN brand is old news--most of Microsoft's popular consumer online services (e-mail, instant messaging) got the Windows Live brand four years ago, and Microsoft abandoned its MSN Music download service in the United States when the Zune launched.

We know that the Zune team is working on some sort of strategy for mobile phones. Digital rights management? Nobody's using it anymore, except for subscription-based services. And we know how DRM worked out for the original MSN Music--Microsoft said it was turning off the DRM servers, rendering songs nontransferable to new computers, then it reneged under public pressure.

But the kicker has to be the price: 1.5 pounds (a little more than two bucks), while Apple's iTunes, Amazon.com, and most other music stores start at .79 of a pound. Did anyone happen to notice that we are in a recession?

Most of the time, poking fun at a poorly thought-out Microsoft initiative is good-natured ribbing. But this comes at a time when the company has just announced its worst earnings miss ever and is looking to cut 5,000 jobs over the next 18 months. That makes this kind of incompetence sad, not funny.

[zizzybaloobah]

What's worse is the MS executive in charge of this, didn't even know that people change phones every year or so. In the interview I read, the guy really makes himself and Microsoft seem extremely out-of-touch with the habits and proclivities of mobile users.

[daveturnley]

Best quote from that Q&A: "We'll be looking to enhance the service if we get some interest from consumers."

Sounds like, "You have to buy it before we make it any good. Trust us. We're Microsoft."

[Dalkorian]

Well, at least they're being honest about it - unlike with fista.
;-)

[ppgreat]

I agree. MS has been out of touch for your years, depending on its standard FUD playbook and monopoly to keep the lights on and vaults filled. Level the playing field and they simply can't compete.

[hatmon]

It is certainly a terrible idea. I don't think I could wholeheartedly say it is the worst idea ever though as I am presently using Vista.

[ducttape36]

they need to just leave the music business to their zune division. at least they know what they're doing.

[nasserd]

WELL, I guess we know who is getting the axe at Microsoft UK!

[dascha1]

In reality, from a bigger picture, it's a mystery as to why Microsoft never successfully acquired a company that was 'hot' early in that biz. They've bought a bunch of co's in the past but for some reason I don't recall a music/production company they currently own. Can someone re-fresh my memory if otherwise please?

[CDubber]

Microsoft needs to get over its obsession with having dominant control over every single technological aspect of our lives.

[opiapr]

Retarded idea

[SkateNY]

I don?t doubt that many or even most Zune owners are satisfied with what they have. Here?s my thing: Apple dove into the MP3 market when that market was already well on its way to maturity. The iPod quickly made a big splash, and iTunes has played no small part in helping the iPod acuire a 70% market share. Apple did not engage in illegal, monopolistic business practices in order to achieve that level of prominence; nor did Steve Jobs hypnotize buyers, steering them towards the iPhone.

When the iPhone was released in October of 2001, it succeeded during a recession caused by the terrorist attacks of 9/11. If the current economic climate adversely affected the Zune and other consumer products, then it stands to reason that it also adversely affected iPod sales. Yet, Apple reported a growth in iPod sales for the most recent quarter, versus a 54% drop in Zune revenues. How much better would the iPod have faired this quarter without the deepening recession?

I believe that Microsoft and its investors need to re-evaluate the Zune with regard to how it affects other products, and how it affects shareholder interests. If I?m a Microsoft competitor ? and I don?t believe that Apple and Microsoft compete in the sense that they appeal to very different groups of customers ? then I truly hope that Microsoft continues to throw money and other resources at the Zune.

[Carolinadancer]

Hey, I love Vista! My boss has made a ton of money from people who bought new computers with Vista on them, then got so frustrated that they pay him $80 PLUS the cost of the software to downgrade them to XP! Keep up the good work, Microsoft!