How Zune is Now?

It’s a super-busy day in the ad jungle but, fortunately, my post of the day just sort of fell into my lap.
From another news source, an additional update on my Zune prediction.
Back in July I wrote how Microsoft could take on Apple’s iPod:
Well, I’d go after a mass market– because you have to see who’s willing to bite and welcome them into the fold– but, beyond that, I’d use the X-Box, the console’s supremely advertiser friendly, 18-24 demographic, and the points– the Microsoft Points. […]
Advertisers will beat a path to Microsoft’s doorstep and the users will gladly watch their ads, all for the sake of collecting ethereal “points” used for the purpose of purchasing digital content [for their Zunes].
And this, from a story on CNN.com today:
For consumers looking to own a song, the Zune Marketplace will sell tracks for 79 Microsoft points. A user can buy 80 Microsoft points for $1 and points will also be redeemable at its online video game store, Xbox Live Marketplace.
Also, I received this note from a reader today which I’ll share here, not to break an email taboo but because I feel it’s relevant to the wider discussion:
Hello Mack,
I have been following your blog posts about Zune vs. iPod. It looks like it is going to be a fight to the death. Who do you think will be on the sidelines ready to throw in a punch or two (below the belt of course)? I have been following Creative for the past year and I like what they’ve been doing however they are David compared to those two Goliaths. I just wanted to pick your brain on the matter.
All the best,
Lumi
Interesting question.
In my line of thinking, this battle has grown well beyond a simple war for digital music/video players. I think this is shaping up to become a new (and important) salvo in the battle for the living room, with integration of the television -> video game console -> home stereo being the ultimate goal– and in a form you can slip into your pocket and carry with you. Portable music and video is simply the low-hanging fruit.
Apple is approaching it from a computer -> handheld -> content distributor angle. Microsoft seems to be approaching it from the computer -> game console -> handheld side.
If any other player were to jump into the game, I’d expect it to be someone who already has ties to content or who produces a box or two consumers use in their living rooms today.
Like who? Like Sony– who produces audio and video content, television sets, video game consoles and… digital music players.
We’ll have to see.
07/23/06: The original Zune prediction/marketing plan
08/18/06: Update #01
09/14/06: Update #02
09/28/06: Update #03
11/14/06: Update #04
10 commentsEmail Article Thursday, September 28th, 2006 at 12:39pm Mack Simpson
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