Did Microsoft Cave Where Apple Wouldn't?
News Commentary. Uh-Oh. The peacock wants to kill the golden goose. |
Yesterday, Microsoft released Zune Marketplace 2.5 software, adding TV shows for sale (finally). Guess what? Microsoft got NBC, which is still absent from the iTunes Music Store following last year's exit. But will there be a hidden cost to Zune music player functionality?
Last month, NBC indicated interest in returning to iTunes, if Apple would apply onerous rights management protection that would affect all content for the software and iPod. So far, Apple has done right by customers by refusing NBC's demand. Microsoft may be more accommodating to NBC.
In a New York Times story today, reporter Saul Hansell says that Microsoft and NBC may bring stricter rights protections to Zune.
He leads off: "If you like to download the latest episodes of 'Heroes' or other NBC shows from BitTorrent, maybe you shouldn't buy a Microsoft Zune to watch them on." An upcoming Zune Marketplace software update may include a "copyright cop" mechanism "that will block unauthorized copies of copyrighted videos from being played on it."
Well, that would explain why Microsoft snagged NBC and iTunes is missing one peacock.
An NBC executive told Saul what the company already voiced: That iTunes needs flexible pricing (not one price for all TV shows) and the aforementioned rights protection.
"NBC came to us because of security and flexible pricing," a Microsoft PR spokesperson told me this afternoon; I called looking for confirmation on the alleged, future copyright cop feature. She added that Microsoft doesn't normally comment on business deals with its partners.
About four hours after I posted, Microsoft came back with a second statement: "Microsoft has no plans or commitments to implement content filtering features in the Zune family of devices as part of our content distribution deal with NBC. Our focus at Zune continues to be delivering fun, connected music and entertainment experiences for consumers."
That's not a denial, by the way, because "part of our content distribution deal with NBC" is a qualifier. The statement doesn't rule out a future plan, which was the context given by the NBC executive. Any "plans or commitments" could be separate from the existing agreement, which expiration is unstated.
Today, Michael Gartenberg, a JupiterResearch research director, Twittered: "Copyright Cop for Zune? If MSFT does this it will kill any chance of success. This not the way to fight AAPL." He linked to the Times story, which I hadn't seen.
Michael is absolutely right. Microsoft might as well kill Zune now, like it did MSN Music and PlaysForSure before it. Onerous rights protection that arbitrarily restricts video content would be the end of Zune. The device appears to be quite popular among Microsoft enthusiasts, the kind of geeks who would pull video from pretty much any source—yes, including BitTorrent.
Microsoft already made concessions to Universal Music, which gets a buck for each Zune sold. Would Microsoft really sell Zune's soul to NBC for a few TV shows?
Microsoft has unsuccessfully beat the digital rights management drum for years. The company planned to launch Windows XP Media Center in 2001 with encryption applied to every recorded show. But the company bowed to customer pressure and backed off the strategy; partially. Microsoft still uses some rights protection, such as restrictions on recording some high-definition content.
Before Apple launched the iTunes Music Store, Microsoft embarked on a strategy of wooing content providers through Windows Media DRM. But content providers were slow to embrace Microsoft's proprietary file format, and iTunes and iPod were quick to take off; the DRM strategy stalled.
I understand there is some desperation at Microsoft to gain momentum for Zune and the Zune Marketplace. But restricting content will only alienate some of the company's most loyal music customers. A copyright cop would be right up there with abandoning former MSN Music customers and their legally purchased, onerously-rights protected content. Microsoft's updated statement offers hope the company will use some good sense.
Advice to Apple: Don't ever do anything this stupid. Advice to Microsoft: If you ever agree to doing a copyright cop feature, use Windows Vista's six-year development timetable to deliver the goods.
[Editor's Note: Updated with additional Microsoft statement.]
Related Posts:
- MSN Music is Tone Deaf, Apple Watch, April 22, 2008
- My Dear John Letter from MSN Music, Microsoft Watch, April 22, 2008
- NBC Wants What?, Apple Watch, April 17, 2008
