9/January/2004
http://www.netimperative.com/cmn/viewdoc.jsp?cat=all&docid=BEP1_Feature_0000060948

It had seemed as though the record labels had seen off the internet revolution with their heads still attached to their shoulders, but it now appears clear that their one concession to the uprising - agreeing licensing deals with Apple - has landed them in an all-new power struggle.


While the big five labels (BMG, EMI, Sony, Universal, and Warner) have done a sterling job of wresting back control of the price and distribution of their music from the peer-to-peer networks and the average punter; they lost their focus on the final part of the chain, consumption, and in typical style Apple has filled the gap with a new combination of design and usability - the iPod and its partner software iTunes.

The device has, as the frantic music-related activity of this week demonstrates, thrown an almighty spanner in the works of the big labels. Realising after all that end users matter, the opening straight of 2004 has been a dangerous place as big men scramble to their feet to join a race they didn't realise needed running.

Just this week, Real revealed its own iTunes, RealPlayer 10, which will be integrated with a new digital music store, while Sony confirmed plans for an online music service that will integrate with its so far stalled MiniDisk devices. In the meantime, Intel, Samsung, Napster, Microsoft - name a company - is planning a new 'media' playing device and the battle to prevent the iPod from becoming the new Walkman is on.

Most of them, we are sure, realise the battle is already won - the iPod is the new Walkman and then some. Users of the iPod have a nickname for each other; new versions get coverage on the news; and CD collections are already being seen as a throwback. Once connections between the iPod and the home hi-fi - being made possible through new pieces of kit and home wireless networks - become commonplace, we need never address the problem of CD storage again.

But the record labels recognise that, if a battle is lost, thoughts must turn to damage limitation. Chiefly, this means the labels need to encourage competition to the iPod or face a testing time when it comes to licensing negotiations with Apple. As the former device king, Sony has the most to lose and the loss of its traditional home ground to a US upstart must smart.

But if Sony can persuade the other record labels to help it market its own players through its new Connect digital store service, the five can construct a credible competitor to Apple and once again gain control of the entire distribution chain for their wares. In the past five years, the record labels have had a torrid time coping with the new world, and as file-swapping finally comes under some kind of control, the last thing they want is to hand back power to an outsider.

But the marketplace for music remains incredibly complex. Users are being forced to stump up at least 79 cents per track from all legitimate sources. While the RIAA can hunt each file-swapper down one by one - the issue of value for money will ensure that consumers will continue to opt for free downloads.

There also remains an inherent resentment among music buyers toward the labels - in many cases, buyers sense that every time they download a free track they are achieving a small revenge for the way in which they were duped by the promised cuts to CD prices.

This sense continues to play into Apple's hands. At once chained and set free by its position as computer underdog, Apple is viewed as the people's champion and the iPod is sealing its place. While the record labels must accept that they are too late to challenge the iPod in the short-term, they are now fighting to ensure that it goes down in history as a fad and not a catalyst for revolution.

There's much room for competition. The average iPod costs more than I paid for my last computer. It has moving parts and a hard-wired battery that craps out after 18 months. Oh the iPod ads are cool. Surely the Chinese can make something comparable for $50, without moving parts and user-friendly battery replacements.

I keep hearing about the "death of the CD." First, I don't think I believe it. But if it is going to die, it is going to be replaced with what? Downloaded tracks that have the quality of a cassette tape? And they want us to store all our purchases on our computer hard drives and iPods. then when those hard drives die, we've lost them, and have to buy all over again.

Apple, "the people's champion." I don't think so. What hype.

"Apple, "the people's champion." I don't think so. What hype."

I agree. In the long run Apple is going to get their ass kicked, same as usual.

People have been dissing Apple for 20 years and it doesn't seem to be working, does it? The real revolution is when the pod-like products hit street affordability, like US$50 or less. The Koreans will do that. Apple invested a ton of money, took a risk and understandably seeks profit. Being "anti-RIAA" should not be about being "anti-profit" it should be about being FAIR.
BTW, most music consumers don't care how they treat media--remember your pals who left cassettes on hot auto dashboards, or scratched your LPs or trashed your CDs with nicks and scrapes? digital is perfect for such end users.

I've been using WinBlowz since ver 3.0 and Mac since, well..before ver 7...
Windoze has gotten a lot more stable with XP...but Macs have always had a better OS...and more elegant interface, and in general, more fixable and less unstable. But Jobs and Gates are both "entrepreneurs"...and they care about their own agendas...not the poor EU (end user).

I say a pox on Micro$0ft, RIAA, MPAA, BSA and every other tyrant wannabe

Apple, the iPod, and digital music is all here to stay, there will be chaeper players as there were cheaper "walkmans". But the "Pod" will always dominate, and when the digital technology changes, I bet you that Apple will be doing the lead work on that too. The idea that the iPod will become tomorrows "beta vcr" is laughable.

Apple didn't start iTunes as a music player years ago just to see it slowly die off, there was a reason and the fruits of that are booming!

Personally, I didn't get into "walkmans" for years until I had to by necessity (being in the music industry at the time), same with iPod, I have no need for them. I have iTunes at home and at work, and my car audio has mp3 capabilities.

Other types of music files will come, and Apple will be there for it. And so will the other followers in the 'puter biz.

Oh, come on. Apple's share of the PC market is at best stable. At worst, declining. Yeah, they are cool, and artistic types like to use them. Maybe the iPod will add to their profit margin a bit. Last I checked, Apple's profitability was not really that great, though like other tech stocks, the share prices tend to be out of proportion to any reasonable expectation of return.

I'll concede they may have more success gaining and maintaining market share on their iPods than their overpriced PCs. But I still see fierce competition. Personally I'd never buy one. Batteries should be rechargable AA, and memory should be in the form of "sticks." I have a friend with a player like that, and he absolutely loves it. And he never bought an MP3 file in his life. I doubt he ever will. He's got CDs. I've got CDs. We don't need no stinking iTunes store.

I might buy an Apple computer if they would make some kind of reasonable attempt to compete on price. The iMacs were cute, but very difficult to add or replace any parts. Why should I pay extra money to frustrate myself?

it is only a matter of time before the mp3 players will come with wireless connectivity (currently available with pocketpc , palm etc). this will enable users to listen to music from everywhere with no need for a storing 40 gb of songs. you will be able to listen from the your own playlists at home without carrying it with you. apple is on a totally wrong path, and ipod will be doomed in 1 to 2 years as wireless networks become more prevellant.

"ipod will be doomed in 1 to 2 years as wireless networks become more prevalent."

Who's to say the ipod won't evolve into a wireless device by then? Apple has always been an innovator and trendsetter in the industry, and I have a feeling that when wireless becomes viable, they'll be an early adapter with a slick, user friendly ipod that features wireless connectivity.

Regardless of what you feel towards Apple, they're not anti-technology like the RIAA, and are very quick to change their business models to adapt to new technological trends.

and as file-swapping finally comes under some kind of control,

since when??

"ipod will be doomed in 1 to 2 years as wireless networks become more prevalent."

Who's to say the ipod won't evolve into a wireless device by then? Apple has always been an innovator and trendsetter in the industry, and I have a feeling that when wireless becomes viable, they'll be an early adapter with a slick, user friendly ipod that features wireless connectivity.

Regardless of what you feel towards Apple, they're not anti-technology like the RIAA, and are very quick to change their business models to adapt to new technological trends.

"ipod will be doomed in 1 to 2 years as wireless networks become more prevalent."

Who's to say the ipod won't evolve into a wireless device by then? Apple has always been an innovator and trendsetter in the industry, and I have a feeling that when wireless becomes viable, they'll be an early adapter with a slick, user friendly ipod that features wireless connectivity.

Regardless of what you feel towards Apple, they're not anti-technology like the RIAA, and are very quick to change their business models to adapt to new technological trends.

at least they're fighting it within the market instead of in court (until it's obvious they won't be able to control the technology)

Get a life, Apple trolls! If you think Apple Computer's are for "cool, artistic types" - just take 5 minutes and watch this QT video about how the G5 processor powers the Virginia Tech’s world class supercomputer.

http://www.apple.com/hardware/video/virginiatech/

To Autodidact and others who are mired in their windoze technology, I used to use both platforms in various jobs from graphic design to signage to laboratory work at solvent co. to marketing and now in the financial world.

I assure you that while Macs are more costly upfront , they are far and away cheaper to maintain than PC's, not only that you can run PC software on a Mac simultaneously with Mac software. Not to mention the reliability issues: those that have constant problems on Macs have no clue how to maintain them. Macs are more secure and less prone to viruses, and a hell of a lot easier to support. For real comparisons from a 30 year technology expert originally from the PC side of things check out:

http://forgetcomputers.com/~jdroz/

Well if you want to pay a few hundred bucks to play mp3s, go ahead.


Date: January 14, 2004 @ 1:40 PM
To Autodidact and others who are mired in their windoze technology, I used to use both platforms in various jobs from graphic design to signage to laboratory work at solvent co. to marketing and now in the financial world.

"I assure you that while Macs are more costly upfront , they are far and away cheaper to maintain than PC's, not only that you can run PC software on a Mac simultaneously with Mac software."
When I can build a mac from scratch by buying parts, I will get one.

Its less Virus prone? I'm pretty sure its because there are far more Windoze users then Mac, so somebody that can make a virus on Windoze can piss off more people then somebody on a Mac.

Also, IF, and thats a big if, If Linux starts becoming a gaming platform, I'll switch to that. Mac I'll never go to. I used a mac once. It screwed up, I reinstalled the OS and it was still messed up.

As for the death of the cd's. Not anytime soon. I can buy 50 cd-r's for very little, and a cd-player that plays mp3 also.

I thought that most people in this forum were interested in music, both making and listening. Apple has done alot for musicians over the years, freeing them from renting time in an RIAA studio, paying big bucks to use the equipment.

With a Mac, you can do professional sound production from recording to CD mastering, no big studio required. Just look at the musicians big label and independent who use G4s-G5s in the studio and PowerBooks on tour.

As for the iPod, I own the original 5 gig, a 30 gig, and my kids are on track for 2 of the minis. Our family likes to take all our music everywhere, anytime.

iPods have the great advantage of firewire, really fast transfers, and they are a great portable HD.

"freeing them from renting time in an RIAA studio"

An RIAA studio? Oh. My. God. : )

You can build a Mac from scratch, the question is, why would you want to? "Puters are so chaep nowadays, the time spent could be better used elsewhere.

Say what you will about Apple, they are leaders, not followers. I hate the company, but I do love their machines and what they can do!

Enough snide comments mroop.

I like Apple, however; I can't afford it.

Their products although top-of-line, ARE VERY cost prohibitive.

You can't customize parts, etc., etc.

Without buying direct from Apple and even that's limited.

While WinXp is the last winshit OS I'll use on my own computer, I won't use Apple. I'll use Linux instead.

"Also, IF, and thats a big if, If Linux starts becoming a gaming platform, I'll switch to that. Mac I'll never go to. I used a mac once. It screwed up, I reinstalled the OS and it was still messed up."

I have a dream! That one day all games will be available on any platform with the same usability and speed as on consoles! Now, who will help me build it?

by platform I meant OS

Wireless networks do not eliminate the need for storage - and plenty of it - in portable media players. Users cannot set up networks outside their own homes, and using public networks (mobile phone of public wifi) would be expensive. Anyway, the bandwidth would be insuffifient.

I prefer playing old vintage pinball machines of which I have managed to collect 4. My video gaming needs are few and far between, mostly when I go to Vegas 2 or 3 times a year. After I get bored at the casinos, I go to the arcade for an hour or so and my gaming needs are satified.

Please, no kiddie jokes...I ain't no MJ!

Ahh, but I digress, bottom line is that iPods, mp3 players and their derivatives are here to stay!

The labels are without juice in this unless they buy out the electronics firms or can come up with huge amounts of cash to bribe them and the politicos...well 1 out of 2 out of the way. ;P