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October 2, 2007
Microsoft announced on Tuesday that it will offer three new models of the Zune in November, including two equipped with flash memory. The 4GB and 8GB versions are iPod Nano look-alikes that will sell for a suggested retail price of $149 and $199 respectively. An 80GB player equipped with a hard drive will sell for $249. The pricing scheme for the devices exactly mirrors that of Apple's iPods.
Some of the other changes include a complete overhaul of the device's software and a redesign of Marketplace, Zune's music store. Other interesting features include wireless syncing and the new Zune Pad, a touch-sensitive technology that enables users to slide their finger across the main navigation button instead of always having to click.
The 4GB and 8GB models represent Zune's first foray into flash-based players and they will be offered in a palette of red, pink, black and green. The 80GB features a 3.2-inch screen and will be smaller and thinner than the original Zune 30GB player. The software upgrades will also replace the software in the 30GB models.
Zune devices will automatically sync when connected over home wireless networks. The feature is designed to ensure that owners always leave home with the latest content, such as podcasts.
The move to provide unprotected MP3 music on the Zune music store is unprecedented for Microsoft but does not come as a surprise. Not only is the company one of the major providers of digital rights management software, but executives there slammed Apple and its CEO Steve Jobs last February when he called on the music industry to abandon DRM.
Microsoft then reversed itself in April, saying it would eventually sell unprotected songs on Marketplace.
While 1 million songs may sound like a lot, Microsoft isn't saying just how much of that music is coming from the four major music labels. Already, eMusic offers more than 2 million unprotected tracks from mostly independent labels. In May, Apple announced it had partnered with record company EMI to sell DRM-free music on iTunes. Apple hasn't said how many unprotected tracks on iTunes are available.
Susan Kevorkian, an analyst with IDC, said that Microsoft is more interested in selling music players than it is with providing DRM software. She said that Microsoft began scaling back its DRM efforts last year in order to throw more resources at improving the Zune.
But are the new products enough to reel in Apple? The newest Zunes are a step up, but Microsoft watchers don't think they offer anything better than the iPod.
"I would say they are holding their own," Van Baker, a research vice president with Gartner, said of Microsoft's venture into the music category. "Within that group (vying for the approximate 30 percent market share that Apple doesn't own), I'd say they are a contender. Are they gaining on Apple or making up ground? I don't think so."
What's new with Zune?
The problem is that the newest Zune models don't offer anything demonstrably better than the iPod, the analysts said.
More than a year has passed since Microsoft began developing the music player and the company is still without a comparable video store to iTunes. Zune's Marketplace will begin offering music videos, but it is still without TV shows. While Microsoft crowed about its new touch-sensitive navigation button, the new iPods come equipped with touch-sensitive screens.
And the new iPods now offer Wi-Fi--a feature that was supposed to set the Zune apart.
Kevorkian said her company last year had anticipated "a quicker refresh" to the Zune. She said that some of the reasons that may have slowed Zune efforts may have been some key departures in the unit's management and that it was forced to rush the launch of its debut models.
"What we are seeing now are important incremental changes," Kevorkian said. "What we're waiting to see is more revolutionary changes, such as the ability to access the Zune music service via Wi-Fi. We think Microsoft will be a strong player in the portable flash player category. They have diversified their player platform and undertaken a major overhaul of their software, which is important way to development. There are people looking for an alternative to Apple, and Microsoft is likely going to win market share from other Windows-based media players. They are just behind right now."
Microsoft has always said that the Zune was a long-term project, predicting in 2006 that it could take years and hundreds of millions of dollars to go toe-to-toe with Apple. The company surpassed its initial sales goal by selling more than 1 million Zunes by June.
"What we've done in the past year is establish the Zune brand," said Jason Reindorp, marketing director for Zune. "It's starting to mean something to people. That isn't easy to do. Microsoft had a very realistic view of what it would take to get into the marketplace and differentiate itself and be successful. We look at these things in terms of years, not months."
Interestingly, Microsoft usually likes to compare its efforts with Zune to that of the company's foray into the video game sector. With the Xbox, Microsoft seized market share from Sony and Nintendo very early. Are there any similarities between Xbox's early efforts and Zune's?
"No, absolutely not," Baker said. "Xbox had Halo. If it wasn't for Halo, Xbox probably wouldn't exist. But that's the game industry, where one incredible franchise can drive an entire platform. Against Apple, Microsoft is up against a dominate service worldwide and it's going to be tough to knock them down if Microsoft doesn't bring something uniquely different to market. If Microsoft can't do that, they can only compete on price and that only buys so much time."
See more CNET content tagged:
Microsoft Zune, digital-rights management, music player, Apple Computer, song






- Zune Marketplace has 3 million tracks...
- by richto October 3, 2007 5:31 AM PDT
- Rather misleading just to mention the DRM free tracks.<br /><br />Over 3 million tracks <br />Over 1 million DRM-free MP3s that you can play on your Zune or any other digital media player<br />Thousands of music videos <br />Over 1,000 free audio and video podcasts <br />For about the price of a CD per month, you can buy a Zune Pass subscription to download whatever music you want for a flat rate.
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- FULL ANNOUNCEMENT:-
- by richto October 3, 2007 5:35 AM PDT
- As the CNET review just sucks big time and doesnt cover even 10% of whats new. Here is the full list:<br /><br />Today, Bill Gates, J Allard, and some other folks from the Zune team met with some members of the media to talk about this Holiday?s update to the Zune line. I?m going to keep the PR-ish stuff out of it (for that you can go to the press releases), and just sum up with the facts and the tech specs. Ready? okletsgo:<br /><br />Zune Players: <br /><br />This November, we?re launching new Zune players: Zune 4GB; Zune 8GB; Zune 80GB; and we?re continuing to sell Zune 30GB (the Zune we started selling last year). All of these devices will have wireless sync, updated wireless sharing, an FM tuner, and a bright LCD color screen to display music, pictures, videos and podcasts. Zune 4, 8, and 80 have a new design, and a touch sensitive button called the Zune Pad. The Zune Pad will let you browse through menus either by brushing or clicking. Some details: <br /><br />Zune 4GB and Zune 8GB come with the Zune Pad, have a 1.8 inch screen, and will come in pink, red, green and black. Zune 4GB will retail for $149.99 and Zune 8GB will retail for $199.99.<br />Dimensions of Zune 4GB and Zune 8GB: 3.6 x 1.62 x 0.33; Weight: 1.7oz <br /><br />Zune 80GB has a 3.2 inch screen and comes with premium headphones, standard. It?s a high quality audio and video experience on the go. Zune 80GB will retail for $249.99 <br />Dimensions of Zune 80GB: 4.26 x 2.41 x 0.51; Weight 4.5oz <br />Note that the 3.2 inch screen is 14% larger than Zune 30GB?s 3.0 inch screen, while Zune 80GB is 27% smaller than Zune 30GB<br /><br />And we value and remember our early adopters: everyone who owns or buys a Zune 30GB will automatically get the new features through a firmware update ? ?firmware update 2.1.? Zune 30GB will continue to retail for 199.99 <br />Dimensions of Zune 30GB: 4.43 x 2.47 x 0.65; Weight 5.6oz<br /><br />And here?s the list of Zune features (IE, features that everyone will get with firmware update 2.1):<br /><br />Wireless sync: wirelessly updates content on the device when it is within range of the PC with the Zune Collection on it, or on the same wireless network. You can start the sync manually or, when its plugged into AC power, Sync will automatically start after 1 minute of inactivity. This is so the battery doesn?t get drained by the automatic sync. <br /><br />Expanded wireless send capabilities: you can now keep a track for three plays (we?ve taken any time restrictions out of the equation) you can also send a track you?ve been sent on to other Zune owners.<br /> <br />Lossless playback will be supported on every Zune <br />Podcasting ? that is, automatic RSS based subscription to both audio and video podcasts via Zune Marketplace (more on ZMP below). <br /><br />You?ll be able to sync your Vista Media Center TV content to your Zune and watch it on the go.<br /> <br />We?re still testing battery life on the new Zune 4GB, 8GB, and 80GB, but it?s looking good. Since we built them from the ground up, we have more control over battery performance. <br /><br />Updated device UI (screenshots to follow)<br /><br />Zune Software and Zune Marketplace: <br /><br />We?ve redesigned both the Zune Software and Zune Marketplace from the ground up ? check the screenshots below. Here?s what you can find in ZMP this holiday season: <br /><br />Over 3 million tracks <br />Over 1 million DRM-free MP3s that you can play on your Zune or any other digital media player<br />Thousands of music videos<br /> Over 1,000 free audio and video podcasts <br />For about the price of a CD per month, you can buy a Zune Pass subscription to download whatever music you want for a flat rate. <br /><br />PC to PC send: Zune users can send links imbedded with a song?s metadata from the inbox in their Zune <br /><br />PC software to someone else. The recipient follows the link to sample, buy or download the song on Zune Marketplace.<br /><br />Zune Social: <br /><br />Something I?m really really excited about: we?re launching the Zune Social, an online community beta. It?s a place that gives folks a place to share their music tastes, knowledge and experiences with other folks. It extends the connection from device-device to PC-to-PC. Here are some details: <br /><br />Zune Card: Anyone will be able to create a free, customizable Zune card. You can personalize your Zune Card with your picture, custom backgrounds, biographical info and more. Your card will automatically update with the music you listen to on your Zune or with your Zune software. <br />You can browse your friend?s pages, invite friends, send and receive song recommendations, and post comments to their profile pages.<br /> <br />You can browse your favorite artist?s pages to find other listeners with similar musical tastes. <br />Each song within the Zune Social will have a playable 30 second clip, and if you like the song, you can link directly into Zune Marketplace to buy the song (using Microsoft® points or on your Zune Pass). <br /> <br />You can check out Zune Social community-generated charts to see the most-played artists, songs and albums, or read comments and recommendations posted by other Zune community members on album and artist pages.<br /> <br />You?ll eventually be able to post your Zune card to mainstream social networking sites Wherever your Zune card is located, it will automatically update with the music you?re currently playing.
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