CyberTech Rambler

August 21, 2006

Innovative Deal between EMI and Microsoft

Filed under: Uncategorized — ctrambler @ 10:23 am

Microsoft is to launch a digital media player you can hold in your hand, as oppose to Windows Media Player, named Zune (yawn yawn). It struck a deal with EMI to preload music video on to them (WAKE UP NOW!).

This is an innovative move. In some respects, it is better than giving you a voucher for 5 songs an online music store A. In the shop, the preloaded music video might just swing customers to buy Zune rather than the competition.

There are hurdles. One being Music Video have a short shelf live. If Zune does not keep up, it must as well not preload them as it cost money. If they do, there are technological challenge, in the manufacturing those device, to refresh the music video in the units at lowest cost possible. The worst case scenario: hiring an Indian or Chinese to plug Zune with a Windows Computers and click ‘Download to Zune’ button, is too slow and therefore costly.

That’s one technical problem. The next one is taste. More specifically, which music video(s) to preload? Market research will help, but only to an extent. There is no way to sell pop video to my father, but then again, he is unlikely to buy any digital media player.

Finally, perhaps there is a marketing problem. Do one sells Zune as a digital media player with music video preloaded? or do one sell it as music videos that comes with a digital media player? 😉

Philosophical question: Why didn’t Microsoft preload Windows Media Player with music video to entice upgrade? Same to Apple for iTune? Answer: Competition.

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