TV-PGOctober 12, 2004: New challengers step up every day, but the iPod's market share among similar music players is a whopping 92 percent. Meanwhile, U2 lends its likeness and its new exclusive song to Apple's music marketing efforts, and we take a quick peek at some of the rumored Apple product intros floating around out there...
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Ode To Market Dominance (10/12/04)
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Ruh-roh, Shaggy-- new challengers hoping to snag Apple's catbird seat in the digital music market are lining up to pounce every day, and if the pundits are right at all, the threats are becoming more and more credible. As faithful viewer Macintosah points out, the Associated Press reports that Virgin just debuted its own answer to the iPod mini, which is lighter, holds 25% more songs, and includes an FM tuner all for the same $249 that Apple charges. Meanwhile, Microsoft has just officially launched its own WMA-based music download service-- you know, that one that's been in "preview" mode for the past month. Between Virgin's feature set and brand recognition and Microsoft's built-in captive market of roughly 8 gazillion Wintel users, the barbarians are clearly at the gate; the question is, will they figure out how to open it?

We can't predict the future (our swami hats are at the cleaners), but we can at least tell you why we're not exactly panicking just yet: faithful viewer Philbert pointed out the fun little fact that, according to CNET, while last year Apple held a Jim-dandy 82.2 percent market share among sales of hard drive-based portable digital music players, the latest sales numbers show that the iPod now holds a staggering 92.1 percent share of the market. In other words, among all players that can store more than a few albums' worth of music (and there are a lot of 'em out there), Apple's got a positively Microsoftian slice of the pie. And it's growing.

So how's the "competition" dealing with this? Well, aside from whether or not their offerings stand a chance of mixing things up a little (Microsoft's efforts, in particular, will obviously change things eventually), right now their main strategy seems to be smack-talk. Quoth Virgin Electronics's CEO, "Apple is dominating, yes, but the market share that it has today is not going to last." Well, no, it won't; if the trend continues, next year it'll have, what-- 103% market share, something like that? As faithful viewer Jon Slaton points out, that presumably means that customers will be returning more Virgin Players than they originally purchased, which is a neat trick if you think about it.

Microsoft, meanwhile, is going straight for Doublespeak: according to CBS MarketWatch, the Redmond Giant actually said, "we're different because Apple is a closed system. If you want Apple, you have to use the iPod. A lot of people want choice and we offer that." (In other words, "you can have any color as long as it's black-- and the money goes in our pockets.") Interestingly, Apple decided not to explain that WMA isn't an "open" format, and instead, in its retort, went straight for the jugular with the market share numbers: "The iTunes Music Store, with its catalog of over 1 million songs, works with 65 percent of all MP3 players and 92 percent of all hard drive-based music players being sold today. There is a lot of customer choice happening today, it's just that Microsoft doesn't like the choices customers are making." Oooooo, burn!

Again, we're not saying there aren't real threats to Apple's dominance, but the company clearly has some real momentum and the critical mass necessary to keep it in first place for a good long while, provided it doesn't completely run out of gas. Let's put it this way: does anyone seriously think that people are going to eat bugs for a chance to win an MSN Music-compatible Virgin Player? Exactly.

 
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U2: iTunes Bloody iTunes (10/12/04)
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Speaking of the iTunes Music Store, did you happen to notice the new addition to the Music Videos section up there, as first pointed out to us by faithful viewer Mav? It seems that Bono, the Edge, and the other less colorfully-named members of the band U2 have all turned into 'Pod People; they're all silhouetted up (well, mostly-- you can still make out their faces) and jamming against brightly-colored solid backgrounds while their instruments and microphones trail very familiar-looking white cables and iPod-bearing dancers shake their groove thangs. In other words, yes, it's a music video for the new U2 song "Vertigo," but it's also clearly a two-minute ad for the iPod and iTunes. We had no idea.

It's a real commercial, by the way, in real rotation on real TV-- not the two-minute version, as far as we know, but there's a 30-second cut that, according to CNET, apparently broadcast "during Major League Baseball playoff games and other programs." The hook is simple, if not necessarily clear; the song that U2 performs in the video is apparently available exclusively through the iTMS, so any U2 fans seeing the commercial are going to wonder what that song is they're hearing, they'll do a little digging, and find out that the only way to get it (legally) is to spring 99 cents for it at the iTMS. Clever. And probably quite effective, since (our own feelings aside) U2 has a lot of fans out there.

If we're right, this marks the very first time since the "Concert" iTunes commercial that Apple has had celebrities hyping its music products and services to a general audience, instead of just to a Macworld Expo assembly or a big crowd of press. It won't, however, be the last; according to Apple, "U2 is one of the greatest bands in the world, and we are thrilled to be working with them. You will hear more about Apple and U2 working together in the coming weeks." So this is apparently an ongoing thing between Apple and the band; who knows just how far U2 will go to do Apple a favor? Suppose they'll agree to be the house band at Apple headquarters? Because that might really help with recruitment.

So with what other "greatest bands in the world" will Apple strike up these little exclusive partnerships? Because the company clearly has a major following among musicians, so it shouldn't have much trouble lining up some big draws. Heck, with the Reality Distortion Field and all, we bet Steve could even get the "faked-his-own-death" King of Rock 'n' Roll to come out of hiding and swivel his hips on-camera again. Imagine-- Elvis's comeback, exclusively on iTunes. Of course, Apple might have to spring for the surgery to replace those hips before they'll swivel again, but hey, it's a small price to pay...

 
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Mmm, New Stuff Potpourri (10/12/04)
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Quick, it's time for a New Stuff Rumor Roundup! Not for any particular reason, you understand; it's just that, what with the three-day weekend and our late broadcasts and the heightened focus on music lately, we just figured it might be nice to take a quick glimpse at who says what's coming when before we flat-out forget that Apple makes these things called "Macs" as well as iPods. Clearly we're due, because we can't even remember the last time we indulged in a spirited round of product ship date speculation. Then again, we also can't remember what we had for lunch today, what day of the week this is, or what you call those plastic tip-thingies on the ends of shoelaces that make them easier to poke through those little shoelace-holes, so maybe that doesn't really mean much after all. Still, people are murmuring, so what does it hurt to listen in?

First up: PowerBooks. All but the heartiest optimists have long since abandoned all hope of a G5-based PowerBook shipping before the year is out (especially since New Year's is now less than three months away-- eek!), but the product line is due for a lil' spritz of something or other to keep it smelling fresh and clean as a gentle spring rain. Can the current PowerBooks last three more months for an update at January's Macworld Expo? Well, they probably can, if it comes to that; remember when the 15-inch PowerBook went almost a full year between updates? We just hope that Apple wouldn't let that sort of thing happen again-- and if Mac OS Rumors is right, fear not, for a PowerBook update is reportedly due "in a matter of weeks at most; quite possibly a matter of days." There are zero details save the obvious info that a new Freescale (that's what they call Motorola's chip division these days, now that the company's no longer cursed) chip will boost PowerBook clock speeds and a better graphics subsystem will zip things up a bit, but otherwise there isn't much to chew on.

But hey, what about Macfolk on a budget, who could never afford a PowerBook without first selling off a kidney or two? No worries, kiddo; provided you don't need mobility or the latest and greatest gear, you've got eMac written all over you. And AppleInsider reports that several factors (including "a rare leveling of supply and demand, dwindling channel inventory, and a sharp decline in orders" from Apple to the manufacturing facility) indicate that an eMac update may be imminent. -Ish. Imminentish-esque. Okay, truth be told, they don't even come close to mentioning an actual date, but the last eMac speed bump happened just shy of six months ago, so it's probably due for a bit of a shine. And try not to get too excited about the rumors that Apple has an eMac G5 in the works, because we really can't see that happening for a good, long while, yet.

Of course, we can't escape without one more little music mention; faithful viewer David Triska notes that there's a Page 2 Rumor (meaning, "Uncertain with a capital 'U'") over at MacRumors claiming that an "unconfirmed source"-- our favorite kind-- has told them that Apple is finishing up "marketing materials" for the iTunes Music Store Canada. As always in this situation, "details are scarce," but reportedly songs at iTMS Canada will run about $.99 apiece in Canadian cash (a bargain at twice the price) and is slated for an intro on November 26th. We'd say that'd give all you Neighbors to the North something special to be thankful for, but you went and had Thanksgiving on Monday already, thus totally ruining the timing. Serves you guys right for not being patient.

...Aglets! Now we remember. Never mind. Mmmm, they sure were crunchy...

 
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