Business Week takes on Zune 2.0: Some agreements, one correction

Stephen H. Wildstrom at Business Week reviews the Zune, and unlike some of the more obnoxious Apple promoters out there in the mainstream press, he gets most of it right:

While I think iPod and iTunes will hang on to their leadership for now, an all-you-can-eat music subscription plan gives the Zune some real advantages.

Zune's ace in the hole may be its support for subscription music. For $14.95 a month, the Zune Pass gives you access to most of the 3 million tracks in the Zune Marketplace. (Some publishers and artists only allow purchases.)

Subscription music has been slow to catch on. But with sales of CDs and of copy-protected downloads both crumbling, it may represent the only viable long-term business model for the music industry—despite Apple's stubborn opposition. As it happens, the Zune Pass is too expensive and too restrictive.

So this is all true, and like most of the review, I agree with all of it. I've always said that, to succeed, subscription music services would have to cost $9.99 or preferably less. Zune Pass is a good idea. It's just too expensive. That said, as a heads-up, this isn't correct:

The music can be played only on Zunes, Xbox 360s, and Windows PCs. Even devices compatible with the older Microsoft PlaysforSure protection, such as the Sonos music system are left in the cold.

Not so. I downloaded a new Led Zeppelin collection, "Mothership," from the Zune Marketplace. Not only does it play fine in Windows Media Player, as alluded to above, it syncs fine to older PlaysForSure devices like an 18-month-old Creative Zen V. This means that the Zune Marketplace is still a viable source of music for non-Zune devices, even though you'll have to make the sync from WMP.  This, to me, is the biggest problem with Zune 2.0: It's a fine music player/online service, but it can't be your only media player. It doesn't play DVD movies. It doesn't support a true full screen mode. It doesn't work with non-Zune devices. Etc.

Discuss this Article 2

joe-dokes
on Dec 3, 2007
Unless subscription service prices fall below $8.00 per month or less than a $100.00 dollars per year, it makes absolutely no economic sense to use a subscription service. I'm forty years old and own about three hundred CDs many of which were bought used. Average cost $10.00, total investment three thousand dollars. Now if at the age of eighteen, the date I bought my first CD I had instead bought a subscription to the Zune marketplace for $15.95 per month I would have spent over $4200.00 and would own absolutely nothing (Yes, I am aware that these services weren't even a twinkle in the eye of tech heads back then). It is true that I would have been able to enjoy many more songs, but keep in mind that even if I never buy another piece of music I can enjoy those CDs for the next fifty years. At ten dollars per month I would have spent $2400.00 dollars still own nothing but would theoretically have been able to enjoy a much wider range of music. At $8.00 the plans become very interesting. The key problem that the music industry has been unable recognize is that they need to go cheap. At six to eight dollars per month, every parent in the country would sign their kids up. The music industry is still fixated on the idea that each song is worth two dollars and you as a consumer should be forced to buy ten songs at a time in the form of an album. Regards Joe Dokes
theCheez
on Dec 3, 2007
@joe - I totaly agree with you about being able to still listen to the music after you stop paying vs having to keep paying for the music over and over again, if you're not downloading anything new. Where this service shines is in discovering new music, or for kids that go through phases and won't listen to the same thing 6 or 12 months down the road needing a whole new library.

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