A leading retailer drops Microsoft's Zune

Microsoft a few years decided to step into the field of consumer electronics in a limited way, with efforts for both gaming consoles and MP3 / Media players. Both of these are fast moving items, with fierce competition, an extreme focus on features, and ability to turn users into die-hard fans. In both these areas, there were entrenched players in the field when Microsoft made its entry - in gaming consoles, Sony's Playstation and Playstation 2 (and Nintendo in a smaller way), as well as Apple's iPod in the field of MP3/ Media player were both established players with very strong market shares.
Microsoft on the other hand has a very strong marketing strength, as well as presence in the customer software segment; however, Microsoft had to build up a mind and market presence in the actual consumer devices retail positions. This takes time and effort, and you need to show increasing market share. This has now suffered a setback, with one of the leading retailers, GameStop deciding to stop stocking the Zune (Microsoft's personal media player) due to inadequate sales:

Microsoft's entry into the consumer electronics space came with a thorny channel problem. To succeed in capturing a broader audience, Microsoft had to broaden its retail channel. The Xbox business helped take care of that problem: once Microsoft proved that it was serious about developing and promoting the first Xbox, and once it began to show reasonable sales figures, a new class of retailers--including game-specialty stores like GameStop--were happy to make shelf space for Microsoft's consoles and games, right alongside Sony and Nintendo.
Apparently, after giving it a year and a half, GameStop has found that's not the case. Looking at recent NPD figures, it's easy to see why--compared with the first Xbox, the product just isn't moving nearly as many units (2 million in 18 months) or capturing enough market share.

Still a bit early to write off the Zune, but it just is not capturing any imagination, and in the meantime Apple has moved ahead with the iPod Touch / iPhone, capturing the wow effect.

Apples doubles capacity of iPhone and iPod Touch for $100

The iPhone and iPod Touch (and earlier the iPod) have done wonders for Apple, given the massive customer demand and the can't get enough of iPhone need of customers. I was watching a couple of iPhone users give a demo of the phone to friends who did not have the iPhone, and you literally see these people (admittedly geeks) were positively in love with the gadget; you really don't see that happen to people having other phones and gadgets.
Now Apple has decided to try and squeeze more money from people. Given that a lot of the buying of the iPhone used to happen for the higher-capacity 8 GB phone, it was natural for Apple to add more storage, and in the process, charge an additional $100. After all, why not make money when people are willing to give.

Apple doubled the capacity of the iPhone and the iPod Touch on Tuesday for an additional $100. The iPhone once again comes in two capacities: 8GB for $399 and now 16GB for $499. Apple sold 8GB and 4GB varieties on iPhone Day, but it discontinued the 4GB model after it cut the price of the 8GB model to $399. Something like 90 percent of all early iPhone buyers opted for the 8GB version.
And the iPod Touch can also store more music and videos now, with 32GB of capacity for $499. That device is now available in three versions, with Apple also selling a 16GB model for $399 and an 8GB model for $299.

There was a slight reduction in the sales figures for the previous quarter, something that should scare Apple to some degree. So the announcement of these new models should be a good answer to industry analysts, since there will be a number of users who will buy the highest capacity device, netting Apple an extra $100 in the process. The question however remains as to when Apple will overcome some of the shortcomings in the device, such as addressing 3G connectivity, and providing an inbuilt GPS solution.

Apple working on volume control for iPod's ?

One of the problems with using an iPod and listening to some of your favorite music is that you may not realize when the music volume is too loud and liable to hurt your ears. Apple initially did not care too much about this particular problem, but then got hit with a class-action lawsuit over hearing loss caused due to a person. The claim was that the highest level of volume possible in a iPod was enough to cause permanent hearing loss. Apple had at that time responded by releasing a patch that allows users to set a maximum level of volume, but after that, there was no further news in this regard.
However, now Apple seems to have moved further in this direction, and it would now seem that Apple is developing a device that would allow the iPod itself to calculate how long the user has been listening to the iPod and at what volume, and then automatically reduce the volume. Refer this article.

Citing a new patent application, the report--to which Apple declined to comment--says the "device will also calculate the amount of 'quiet time' between when the iPod is turned off and when it is restarted, allowing the volume to be increased again to a safe level."

This could be interesting. Granted, it would be a useful step, but imagine the surprise when a user listening to the device for some time suddenly feels the volume level dropping suddenly. Could be shocking unless the user knows that something like this is going to happen. And unless this is handled right, it could affect all the people who use an iPod as the base for all their music; they connect the iPod to a music system. Such a modification of the volume could also affect them negatively.

Sony admits defeat to iTunes

Sony had been trying for 3 years now to defeat iTunes in the market for digital music sales. And Sony is not a small player, after it is a conglomerate with a big studio, builds a variety of electronic devices and fast selling mobile phones, but it does not have an iPod. But Sony has also been scoring self-goals in its fight with the emergence of the Apple-iTunes combination. It was slow to adopt MP3 (doing so only in 2004), but its music players have remained locked to Sony's online music store (the same as Apple with iTunes), but this constraint did not work for most people. For the iPod after all, it was the much appreciated design that got people buying iPod's and then getting locked onto the iTunes store. In addition, Sony has been lagging behind the iPod in terms of features, with video incorporation happening only this year.

Sony Corp.'s three-year effort to beat Apple Inc.'s iTunes Music Store is over. The company, which is one of the largest movie, music and consumer electronics companies in the world, said Thursday that it will be closing down its Connect Music Store in Europe and the U.S. In its place, Sony is adding Microsoft Corp.'s Windows Media technology to its music players and allowing consumers to download copy-protected content from numerous Windows Media-compatible music stores on the Internet, including those from Napster, Audible.com and WalMart.
Its first players weren't compatible with the fast-growing MP3 format and would only play Sony's proprietary ATRAC format -- something that didn't find favor with consumers. MP3 was eventually added in late 2004 but the players have remained locked to Sony's online music store for music purchases -- until this week's adoption of Windows Media. On the hardware front Sony has also had trouble keeping up with Apple. A video version of the iPod was launched in late 2005, but the same features weren't added to a Walkman player until April this year when devices went on sale in Europe. Walkman players with video still aren't available in the U.S. but will go on sale from September, Sony said Thursday.

This would be a big shock to Sony, it is not often that Sony has admitted defeat, but in the current case, it must not have been able to see any projections that would have enabled it to at some future point of time take on iTunes and win. But better to cut your losses and run.

Don't use iPod in a thunderstorm

In a report on a man struck by lightning while jogging and using an iPod, the report concludes that even though the iPod did not attract the lightning, once struck, he suffered far greater harm to his body due to wearing the iPod. Refer this report:

His eardrums were ruptured, his jaw fractured and he suffered first- and second-degree burns from his chest — where the device was strapped — up into his ear channels, along the trail of the iPod's earphones. He also had burns down his left leg and foot, where the electricity exited his body, blowing his sneaker to smithereens in the process.
Heffernan said in an interview with the Canadian Press that the man's experience ought to be a cautionary tale for anyone wearing earphones outdoors during a thunderstorm. "Using things like this, a mobile phone or an iPod, there isn't actually an increased risk (of incurring a lightning injury)," he said from Vancouver. "But we just suggest that if you are unlucky enough to be hit by lightning while listening to anything with earphones, you may be more likely to do yourself some damage."
"But once electricity contacts the iPod, then the metal will conduct the electricity and can cause secondary burns, as this gentleman had to his chest underneath where the iPod was and up where the wires went up into his ears, and possibly even cause enough muscle contraction that either caused the jaw fracture or perhaps he fell forward onto his jaw."

Sp, even though the iPod did not cause the electricity to hit him, once he got hit, it amplified the damage and caused him some permanent damage. So this is more of a precaution to not use devices such as iPod's and mobile phones in a thunderstorm or when there is a higher chance of electricity hits.

The time involved in getting the iPhone to actually start working

In all the launch buzz of the iPhone, there has been an incredibly successful publicity campaign that has been run, and market watchers have been waiting to see whether Apple will do anything to trip up on this success story. Well, there is some news, just not enough to trip up the iPhone story, but enough to give a serious headaches to the thousands of people affected.
Normally, the process of wireless activation involves the sales person in the shop handling the activation process, something that would take rougly an hour. However, to make things easier for the large crowds expected, Apple changed the activation process to something that can be done via the user's own computer, through their version of iTunes. However, in the end, this caused problems for a number of buyers, with no clarity regarding contact numbers, and in many cases, with buyers having to spend more than 10 hours waiting for activation to happen.
This can actually be the most frustating thing in the world as of that point, if you imagine spending some time in queue to buy a new phone for around $600-700, and then having to wait while customer service tells you that you need to wait. Obviously, these are teething problems, and Apple should be happy that otherwise people are happy with the phone, otherwise this issue would have escalated into a disaster.

Apple and AT&T unveiled an innovative activation scheme with the iPhone launch. Usually, activating a new cell phone means spending almost an hour or so in a wireless store as the sales representative lights up the phone. But with the long lines expected last Friday, Apple came up with a way to use iTunes to connect to AT&T's activation process so iPhone customers could set up the device at home.
Activation was supposed to be a snap: hook up the iPhone to a Mac or PC with the latest version of iTunes installed, and the software would automatically walk you through the process. After entering a credit card number and selecting a rate plan, the system was supposed to send an e-mail confirming the iPhone had been activated. But waiting for that e-mail turned into a frustrating experience for some iPhone customers.
Other iPhone owners on Apple's Web site reported problems with the SIM (subscriber identity module) cards inside their iPhones. SIM cards hold information unique to a mobile phone account and allow users to easily switch between phones while keeping their numbers and contacts--except on the iPhone, which uses a SIM card that works only with the iPhone. It seemed that the activation system was unable to recognize the SIM cards in some iPhones, which led it to bypass the activation screen and move straight into syncing music, movies and contacts. One user reported that his local AT&T store switched the SIM card that originally came with his iPhone for a new one, fixing the problem. Others said they had done the same thing.

Of course, Apple made a feature that caused a lot of worry to those users who were not activated. Unless the phone was activated, users could not even access other features on the phone; this was something that Apple should have thought through much more clearly, and from the perspective of phone users, not from the perspective of AT&T.

The iPhone finally on sale

Finally, one of the most-awaited devices is on sale, and as expected, there are long queues waiting to buy the phone. But with prices of between $1,100 and $2,000 being quoted on Craiglist and eBay, it is an open question as to how many people are waiting to get it first and then immediately sell it, as opposed to those who are waiting to be one of the first to get their hands on it for personal use. Anyhow, the initial response would be good news for Apple. The iPhone is a major business milestone for Apple, and the success or failure (not meeting projected targets) would have a major impact on Apple.
If Apple can show the iPhone as a major success, they will be known as the company with a Midas touch, in tune with customer requirements and on the bleeding edge of design. If, however, there is a failure, then things will move the other way. The Apple stock, that has gone by more than 200% in the last couple of years will show the impact as well. Of course, as the example of the Playstation3 shows, it will only be with the passage of time that success or failure can be measured. Right now, it is the device fetching customers to shops:

Take San Francisco resident Jerry Taylor, 54, who was first to buy the iPhone from Apple's store near Union Square. After a brief moment in the media spotlight, he said he was selling the device, apparently to a mysterious man with a Scandanavian accent who stood next to Taylor, but who declined to give his name. In spending more than $650 for the gadget, including taxes, Taylor said he was "gambling with this month's rent."
In case you're one of the few who haven't heard, the iPhone is Apple's first attempt at a cell phone. Hyped for months - even years - the device is built around a large, touch sensitive screen, which takes the place of a physical keypad. Apple CEO Steve Jobs and a coterie of analysts, consumers and enthusiasts have predicted that the device will change the cell phone industry as much as Apple's Macintosh computers and iPod MP3 players changed the PC and music businesses, respectively.

It could be similar to what the iPod has turned out to be. The iPod is more expensive than most other music players of its category, but yet is an incredible success, chiefly because it has an incredible reputation. It is known as having an excellent design, with a great brand value and with a complete service infra-structure including good integration with a music purchase and download process (iTunes and store).

The first Apple crazie start lining up 100 hours before iPhone release

Ever since the news of the iPhone was released, there has been a constant chatter about the features, about the geekness, about the wizardry, about the user convenience and so on. The impending release of the iPhone on the 29th, this Friday afternoon has been one of the most awaited events in the tech calendar this year. Apple has hardly had to do any publicity, but even they would not have expected this kind of positive publicity; people always queue up before the release of a major much awaited product, whether that be the new Harry Potter book, or a new gaming console. People have even been known to queue up for a new Operating System.
But this one takes absolutely the pits; for just a phone plus a few other things embedded in it, people are queuing up 100 hours before the release ( a full 4 days to go).

For an Apple devotee, queuing for three and a half days in the baking heat to be the first to get their hands on an iPhone is nothing. And that is exactly what a group of dedicated Apple fans is doing. Outside the company’s flagship store on 5th Avenue in Manhattan, they have set up camp, and – flopped on deckchairs and writing blogs – are whiling away the time until the new device goes on sale at 6pm on Friday.
When asked how they would cope with the 34C temperatures and severe storms that are predicted in New York for tomorrow, both replied: “We’ll deal with it.

This would seem might strange to a number of iPhone devotees, but it is just a phone slapped onto am iPod; is this worth spending 3 plus days waiting in bad weather? I wouldn't think so. And it is not even a very cheap phone, along with a service plan, it costs a minimum of $500.
Apple wouldn't mid at all. This is all free publicity, and is sure to get more people convinced that this is a new device that must be great.

iPhone data plans out

As the time period for the release of the iPhone on Friday evening rolls out, the Apple PR machine cranks out on full speed, releasing articles one after the other. So here's the latest update, the data plans for the iPhone have been released, with the lowest one starting just below $60, instead at $59.99 per month.
There are essentially 3 data plans that have been released, with each plan offering unlimited data, offering 200 text messages, mobile-to-mobile calling and a new service, visual voicemail. These plans do not offer much variety, with $59.99 plan offering 450 minutes, the $79.99 plan for 900 minutes and the $99.99 plan valid for 1,350 minutes. The plan is for a 2-year service agreement, with a one-time activation charge of $36. In addition, the users need to have an iTunes account as well.
Visual voicemail is like email, and the user can review all the email that they have, and select the one they want to hear. Apple is expecting sales of 10 million devices by the end of next year, which is a fairly high expectation. It offers the user a great device, combing a great phone with internet access and the quality of an iPod. However, it is expensive, so there is some amount of doubt over whether Apple can meet the target. If for some reason, the phone under-sells, it will hit AT & T and Apple pretty hard.

iPhone will require iTunes account

Now, it almost seems that most news in the Tech World relates to the impending launch of the iPhone on the 29th. Well, Apple came out with another bit of news. Customers wanting to purchase the iPhone need to have a iTunes Store account before activating the iPhone. Customers in the US can only get the iPhone via the deal with AT & T, but just buying a contract with AT & T Wireless Services is not enough, customers need to have a iTunes account as per this report:

Consumers planning to buy the iPhone when it goes on sale in the U.S. later this month will need to have an iTunes Store account before they can activate the device, according to information on Apple's Web site.
The move will allow Apple to create its own billing relationship with iPhone customers, rather than collecting payments for any iTunes purchases they make via the mobile operator.
Mobile handset vendors, such as Nokia and Motorola, will be keeping a close eye on Apple's strategy of linking content with handsets, she said.

The iPhone is causing a shake-up of how things work in the US cellular industry. In the past, it has been seen that the carriers such as AT&T, Sprint, Cingular, etc drive the show in terms of deals, data services, etc, while phone vendors such as Nokia, Motorola, do not have much of a say in terms of customer facing terms.
In the case of the iPhone, Apple has struck a hard bargain and managed to keep it, so AT&T people were not privy to much of the details of the iPhone, did not have much of a say in how the phone software works and the interface, etc. And now, to insist that iPhone users need to have a iTunes account means that AT&T can't simply sell the iPhone to users and expect it to start working.
There could be an uptake in the number of people complaining that their phones don't work and why do they need to sign up for an iTunes account. The question remains, with the high prices, with no keypad, and with additional requirements such as this one, when will the iPhone just be sold for novelty value and not get the mass selling. At some point, do you reach a point where people resist buying because of the inconveniences involved?
Why does Apple want people to have an iTunes account mandatorily ? If you refer to the bottom section of the Apple iPhone page, it is clear that the user needs to have an account. But if the user wants to use the iPhone for phone calling, and for loading their personal music and videos, they would certainly not prefer having to create an iTunes account. And there is the familiar argument about the iPhone restricting competition by forcing people onto the Apple music platform; after all the iPod's were pure music devices, but this is a phone as well, and there can be a distinction made between the music selling industry and the phone industry, and forcing one on the other could be treated as anti-competitive.

Apple puts buyer information in DRM free tracks

A lot of people have celebrated the decision by Apple and EMI to provide DRM free audio tracks through iTunes (even if they cost 30 cents extra). But suddenly, when there was some amount of excitement among anti-DRM users, Apple has caused some amount of caution. It has been discovered that users who buy DRM free files are getting files that have their user names and email id's embedded in the files.
Users who download the latest update for iTunes, version 7.2 have got the ability to buy DRM free files. But analysis of these files have disclosed that these files have user information embedded in an unencrypted form. This should not harm anyone in an obvious manner.
However, for users who are going to share these files, analysis of these files will easily disclose the original buyer of these files, and know that these files have been shared, something that is still not legally permitted. However, Apple is not disclosing the reasons why these files carry the user information, something which makes privacy experts queasy. So, even though Apple has made files DRM free, it still wants to make sure that it has a way of tracking any movement of these files. Maybe this could have been part of the agreement with EMI.
Refer this article:

An Apple spokesman suggested by e-mail that Wired News contact Michael Gartenberg, an analyst at Jupiter Research who has been briefed about iTunes Plus. The Apple spokesman didn't respond to further requests for comment.
Gartenberg said there are many reasons why Apple would want to tag music sold through the iTunes store. The information could be used as a proof of purchase, or to facilitate upgrades (songs previously bought through iTunes can be upgraded to higher fidelity versions for an extra 30 cents). The identifier could help identify songs missing from albums (iTunes offers a "complete album" feature), as well as to thwart piracy.

The silence by Apple is puzzling. It does not solve any immediate need, and Apple would have expected that this would easily have been found, and they did not have a canned reply. Seems a bit strange.

Apple launched DRM free music on iTunes

It finally happened. Apple launched iTunes Plus, a new service that will offer songs free of DRM protection, although at a higher rate and with a higher quality level of 256 kbps AAC music. A song will sell for $1.29 vs 99 cents for the DRM protected songs. These songs are currently restricted to only songs provided by EMI under the EMI-Apple deal. Apple is also letting people upgrade their previously purchased DRMed songs to DRM free for 30 cents per song.
Consumers have not been very appreciative of DRM. While it prevents piracy, it also restricts the choices available to users; for example, consumers cannot play these songs on a player other than iPod, which is considered an unfair restriction. Refer this article:

Today Apple launched iTunes Plus, a premium service that offers music tracks free of copy protection. The iTunes Plus service debuts, as expected, featuring EMI Group's digital catalog of recordings.
Apple says the copy protection-free music tracks will be available as high quality 256 kbps AAC encoded audio "virtually indistinguishable from the original recordings" and will sell for just $1.29 per song. That's 30 cents more than tracks with copy protection that sell on iTunes for 99 cents. The technology that is used to prevent music tracks from being copied and redistributed is called digital rights management or DRM.
Apple will continue to offer EMI's music with the DRM technology and at its current audio quality, for customers who don't want to pay extra.
Most notably, Apple's proprietary DRM system prevents people who buy songs from its market-leading iTunes store from playing them easily on any music player other than an Apple iPod. That restriction has attracted criticism, particularly from regulators in Europe who say it unfairly limits customer choice.

This is actually a pretty good deal for Apple. They get to be considered as responsive to customer needs, and at the same time, are able to up the price of songs that they sell. Surely, there's good money to be made in seeming to be responsive to consumer needs. There will be a number of other players, both in the online music category and the music albums other than EMI who will be waiting to see the user response to this campaign. If sales jump, so will they.

AT & T exclusive with IPhone: a CDMA killer

The Apple iPhone has been a much awaited device ever since it was announced and displayed a few months back. Due in June, the iPhone will be available exclusively with AT & T, giving AT & T an automatic advantage due to the hype and media buzz around the iPhone. Apple is locked with AT & T for a period of 5 years, an incredibly long time, but equally importantly, in the battle between GSM and CDMA users (Sprint & Verizon), Apple has been prohibited from developing a CDMA version of the iPhone for 5 years. The fact that a leading device is not available on CDMA will automatically give GSM a push up in the standards war. Refer this article:

The Apple iPhone, due out next month, has been breathlessly hailed as offering consumers the ultimate wireless experience. It also could give AT&T, its exclusive U.S. distributor, the ultimate experience for a wireless carrier: an easy way to handcuff rivals and steal customers.
Apple is barred for that time from developing a version of the iPhone for CDMA wireless networks. That ban is no small thing. AT&T rivals Verizon Wireless and Sprint are both CDMA shops. AT&T uses GSM, a global standard incompatible with CDMA.
They also sparred over the iPhone. As previously reported by USA TODAY, Verizon passed on the opportunity to become the exclusive U.S. distributor, balking at Apple's demand for control over distribution, pricing, marketing and more. That left an opening for AT&T — then called Cingular — to cement a deal. (AT&T on Monday officially dumped the Cingular name and store signs now are being switched. The move came slightly ahead of schedule.)

There is intense competition between the major US carriers, AT & T, Sprint and Verizon, with all of them using all possible tactics to get a better market share. In such a case, if the iPhone becomes a major hit, it will give a huge advantage to AT & T, while at the same time, if people are put off by high prices, then it can be a disaster. Also, with the iPhone promoting a much better internet connection as well as songs downloading, more people will use higher data plans, increasing revenue for AT & T.

Using iPods to cheat

Reading into a set of decisions across schools, one realizes the limitless scope of usage of modern technology and how a younger generation is the one which can more easily adapt to these devices, while the authority group is the one which keeps on playing catch-up.
What happened? Well, schools across the country are banning the usage of digital media players in schools due to their potential usage for cheating. It seems very obvious though: These are kids with a very comfortable way with technology, able to be much further ahead than their teachers in their utilization of technology, including misuse. Read this article here:

Banning baseball caps during tests was obvious -- students were writing the answers under the brim. Then, schools started banning cell phones, realizing students could text message the answers to each other. Now, schools across the country are targeting digital media players as a potential cheating device.
Devices including iPods and Zunes can be hidden under clothing, with just an earbud and a wire snaking behind an ear and into a shirt collar to give them away, school officials say.
Mountain View recently enacted a ban on digital media players after school officials realized some students were downloading formulas and other material onto the players.
Some students use iPod-compatible voice recorders to record test answers in advance and them play them back, said 16-year-old Mountain View junior Damir Bazdar.
Others download crib notes onto the music players and hide them in the "lyrics" text files. Even an audio clip of the old "Schoolhouse Rock" take on how a bill makes it through Congress can come in handy during some American government exams.

These media players are very small, and can be hidden very easily. In addition, the functionality available with these players makes it very easy to cheat, you can record answers as a music file, can stores answers in lyrics, and so on and so on.
However, this fight between technology and people in authority is going to be increasing difficult. What happens when you get watches that can act as an interface to a music player, and what happens when you get sunglasses capable of acting as media players.
This problem will not go away. The better solution is to re-structure learning in such a way that people are quizzed on application of what they learnt rather than having to remember things exactly as they are. What will happen when the iPhone becomes available ?

iPod is now 100 million old

On Monday, the 9th of April 2007, Apple announced that it had sold its 100 millionth iPod, making a massive milestone in the history of the iPod. The Apple iPod has been a major success, both a marketing marvel and proving to be a financial windfall for Apple.
Before the launch of the iPod, Apple was known as a producer of well designed niche computers, incompatible with the Microsoft operating system. Machines were well acclaimed by users, but more expensive than comparable system running Microsoft OS's.
At the time that Apple unveiled the iPod in November 2001, the market for portable music players was decidely iffy. People bought portable music players, but they never cottoned onto the design, and found them not at all sexy to use. Then the iPod came on, and the market was never the same again. Customers really loved the easy to use design with the click-wheel proving very innovative to use. In addition, the spillover into the iTunes music store has also been phenomenal, out-selling all other music stores.
The effect of this success has been a great booster for Apple. In addition to financial performance, Apple has also managed to get into multiple markets. Most importantly for Apple, it has managed to leverage this coolness into a movement into multiple markets. The iPhone is a widely awaited device, and with the recent push about making iMacs work on Intel and allow hosting of a Microsoft platform, things seem to be looking up for Apple a lot.

Apple and EMI abandon Digital Rights Management (DRM) protection

The iPod is one of the largest selling personal music player ever. When linked with the iTunes store, this is a combination that has become a major business for Apple, and brought in increasing proportion of total revenue. However, the DRM locks on iPods ensured that content bought through iTunes and transferred to an iPod could not be transferred to music players manufactured by other companies, and this was an oft-repeated complaint.
Now, in a collaboration with EMI, Apple will start providing songs and albums via the iTunes store that is not content protected by DRM, but will be transferrable to other players. The concept is that this is a customer friendly move, and is not really about relaxing any of the fight against piracy.
This does not actually come free. Songs that currently cost 99 cents will now cost $1.29 for a 'premium' version; this premium version is DRM free and also doubles the quality level from 128 kbps to 256 kbps. Albums will be available at no extra charge. And, in the neatest part, users who already have bought songs will be able to exchange these for the new premium version by paying an extra 30 cents. This is free money for Apple. These new premium songs will start to be available in April.
This is a sweet deal for Apple any which way. EMI was willing to do this deal with everyone, but Apple is the one who is the first on the starting block, and will be able to appear to customers as more concerned about their choices. This deal also has the potential of adding to the revenue that Apple currently generates. This deal also hits Microsoft by showcasing Apple as the better service, and Microsoft only struggling to play catch up. If this deal becomes a hit, Microsoft will be under great pressure to respond.