Two key theme we discuss often here are: the importance of simplicity and transparency with customers and beware of strategics. Well…
Microsoft recently launched the Zune player. It is a massacre. You have probably seen the (uniformly horrible) reviews. It could be one of the quickest tube shots (or bloodiest) in the history of consumer electronics. Surprisingly enough, this is the same team that successfully launched the XBox and has put Sony in its current bind. Why the issue?
There are two culprits: Microsoft is trying to be too cute and they are also dancing too close to the devil.
Respect Your Installed Base:
In order to grab exclusive control over the player and content, they have sold all of their Windows Media Player partners downstream (Rhapsody, Yahoo, etc). The Zune will not accept their music and you can’t buy Windows Media content at the store (sorry Samsung and all). So, trying to be cute and stealing a page from Apple’s book, they have ended up throwing away one of their few assets…an installed user base.
Minimalism and Common Sense:
In order to throw in all their function (like WiFi sharing), they have made a clunky, brown music player. It is much larger than the iPod and looks more like an Archos. It’s like Windows vs Mac all over again.
Make Purchase Simple and Eliminate Friction:
Microsoft has hired a few too many consumer consultants on the design of their music store. The complexity of buying music is amazing. They are getting too cute for their own good. You have to buy in $5 chunks which forces buyers to give Microsoft float. You don’t buy with dollars, but with points since consumers tend to spend more money when they redeem points versus dollars (think of your average kids fair). You also redeem 79 points for a song which is designed to make you think it is less than the $0.99 Apple songs. In other words, they try to game you at every corner. The result is a convoluted solution with lots of friction points.
In contrast, the Apple store has one click purchase, stores your credit card, charges you $0.99 and you can buy whatever quantity you want. It is so simple, I find myself buying way to many songs since I just look them up and then click buy.
Give the Devil the Heisman:
I have danced with the record labels and they will pile constraints on you until they make your business model unworkable. Strategics don’t think rationally in fast moving markets and, like a drowning man, will take you down with them often.
Many of Microsoft’s woes are driven by restrictions thrust upon them by the labels including, I am certain, much of the idiotic DRM scheme. I saw, first hand, an investment (Dataplay) bury $180m in the ground because of DRM restrictions demanded by the labels.
As one of my favorite CEO’s, Tim Stultz says "Ask for forgiveness, not permission."
I own Macs everywhere, am drowning in iPods and enjoy our XBox 360. Thank goodness for Microsoft that Apple hasn’t come into console gaming…
Matt-
thanks for this very good and very concise analysis of todays digital media space. I think we are starting to see the clash of titans: Media and Medium
Your illustration is a perfect example. Microsoft thinks it can become a media company even though it’s core business is in developing the medium. MS believes (wrongly IMO) that since it develops the medium that it should be easy to simply distribute the media as well. But that is not their core business so they run into trouble as you point out.
Especially the installed base. As a development company, MS nurtured (or sometimes coerced) partnerships with software and hardware companies. But in order to get consumers they now have to disregard those relationships in order to sell product.
Which brings us to your second point, Microsoft has never been in the business of selling directly to consumers. Oh sure, you can get their products in the store, but that is an elaborate distribution system of retailors, VARS, and OEMS. Your example illustrates MS apparent lack of knowledge about what the consumer wants.
Your third point is excellent. MS has met very little resistance from its development community when it comes to changes in its platform. The development community has always adjusted for MS. But now MS is coming up against content providers who are making demands on them. MS is realizing that dont have the “content” and that in order to sell directly to consumers they have to make concessions the media providers.
The labels and content providers are not buying the “but we’re Microsoft, we know what’s best” line of bulldunk. And soon the developers and consumers won’t buy it either. It’s so delicious!
I think Apple is able to comingle with media because it has always paid attention to the consumer, especially when it comes to design (a la simple). And since it has developed most of it own software there is very little worry about the installed base. Apple is better positioned in the computer industry to become a distibution channel.
I would DEFINITELY like to hear more about your interactions with the record labels and media companies. I think a lot of us technology geeks (medium) need to learn more about the media industry because the clash of the titans is far from over.
mike
Will definitely write on past experience. I hear it is therapeutic to get it out! 🙂
The Zune media player (it’s not just about music anymore) is pre-loaded with a variety of songs and music videos from new artists so right out of the box, the big music companies seed their stuff!
Microsoft’s Zune looks and feels clunky, compared with a similarly featured iPod. Apple has a way with design that few companies understand… obviously, MS isn’t one of them.
You make a very good point about the overly cumbersome Zune Marketplace experience. The points approach is insanely frustrating for anyone who just wants to get one hit song and continue “living offline”.
Microsoft is trying to force its users into thinking like its so-called “experts” instead of making things straightforward and foolproof.
Considering the Zune is, in part, intended for teens, who have a reputation to discriminate against poor design, they could well choose to ignore the Zune altogether… along with it’s hellish marketplace.
They are hoping that between their social networking concept (sharing music wirelessly between Zunes) and their marketing muscle, they can push this through. I am interested in seeing where they take version 2.0 of this. I have to believe that with the XBox marketplace starting to take-off, they will try to lever that into their Zune strategy.
However, if they continue to dance with the Devil (labels) as they are, they will get burned.
Actually, I like the Zune. I don’t find it “clunky” or unmanageable (sp?)… Why does everything have to be tiny? I’m 22 and I own an iPod…and I much prefer my Zune. I think the Zune Marketplace is excellent, user-friendly and easy to navigate. I love the way the Zune itself operates, how large the screen is, how you can share your collection with other Zune users (although, to be honest, I really haven’t run into anyone who has a Zune yet!)… Et cetera. It’s my best mp3 player.
The only issues I’ve had so far…. one you brought up earlier under “Respect Your Installed Base.” Searching could be a little prettier. And when they update, they don’t give you a choice to accept. So suddenly my font is huge, even though I prefer the smaller font. I’m not entirely fond of the way they categorize pictures, showing one of the pictures from a folder as its caption and having the title be out of the way… I’d like it if the title were placed over the picture.
Overall, though, it’s a pretty nice player. Mine isn’t “brown” — it’s blue and dark grey. And it’s sturdier than my iPod… the only thing that would make it better is a touch screen.