Buy Zune

Zune has just doubled its market share of the portable MP3 player market, but it seems that Microsoft is bent upon taking over the whole market. In this regard, Michael Pinto, creative director for design firm Very Memorable has a few suggestions that Microsoft should follow to make the Zune the top most MP3 player.

For one, he says that Microsoft needs to offer a $25 model of the Zune. This will be the competitor to Apple's iPod shuffle. It should also sell itself more as a fashion accessory, like the shuffle does. He mentions that Zune needs to focus more on form and less on the technology inside. Microsoft should also offer limited versions of the Zune like a Hello Kitty Zune and a Takashi Murakami Zune. Finally, Mr. Pinto recommends that Zune should always come pre-loaded with music, including music videos and exclusive interviews with artists. The goal is to make it a hobby to collect Zunes and of course increase the market share of the Zune.

We mentioned that Microsoft had plans to launch Zune in Canada, and we got many inquiries in this regard, now, finally, what seems like an eternity later, we have an official launch date of June 13th. There were also rumors that the whole line of Zunes would not be available in Canada. The 4GB, 8GB, and 80GB Zune players will be in stores on June 13, 2008. Canadian Zune lovers (or would-be lovers) can go over to zune.ca for more information.

Personally, I feel, if Microsoft can market it right, Zune may be a bigger hit in Canada than it was initially in America. However, they will probably need a different marketing strategy in some of the provinces (French Canada for example may require a different approach). The penetration of the iPod is high in Canada as it is in America, so it is not really that surprising. Zune 4GB and Zune 8GB will be retailing $139.99 CDN and $189.99 CDN respectively. The slim ultra-portable Zunes will be available in black, red, and pink.

Microsoft announced, not too long ago, about a pilot program which aims to put advertising into Zune Social. The blogosphere has responded with a resounding "NO!" at this news. However, most bloggers probably assumed the worst (pop-up advertisements while trying to navigate to the next song or something). So, ArsTechnica has a write up explaining what exactly Zune Ads is all about.

To begin with, the advertising is not just limited to the Zune. It is a move by Microsoft to offer ads on Xbox 360, Xbox Live, Windows Mobile, and Microsoft Surface would all be part of this system as well. Microsoft is testing a new frontier by also making the ads interactive and enjoyable and giving users the choice to view ads or not. At this point it seems that the advertising will only come along with free content, like an MP3, wallpapers, trailers, etc. which means that the advertising will be completely optional.

The retailer, GameStop, which sells mostly video games, video game consoles, and other video game related merchandise, has said that it will stop selling the Zune because it does not fit well with its product mix. Though I don't understand who thought that an MP3 player would fit with video games. However, with Zune games coming out, it may begin to fit better soon. The target market of video games and the Zune are similar so I can see how they might have thought that GameStop would have been a good place to sell it.

Apparently GameStop had already made the decision to stop selling the Zune, internally about a month ago. But they announced it at their first-quarter 2008 earnings conference. Personally, if I think about buying a Zune I would think of Best Buy or even Target and Wal-Mart, but not GameStop. So, I don't find it surprising that they have decided to stop selling it, shelf space is a precious commodity, and for a retailer like GameStop in which margins are decreasing, even the little Zune may be taking up too much space.

So, Microsoft's conference for advertisers just happened and the one thing that came out of it that piqued my interest was that there is a possibility of putting advertising on the Zune. Now my first reaction is, "noway" but Microsoft demonstrated a concept that really doesn't seem that bad on the whole. Read it and see what you think.

The demonstration consisted of a music festival sponsored by Doritos. A musician from the festival could create a Zune Social profile, which other Zune users (like you and me) could subscribe to that profile, sync up our playlists and receive some free music by the artist that Doritos paid for. The advertisements would appear on the musician's social card. The music you would play would be brand-free. So basically its free music for a logo on a social card from my understanding...

Musicwave is a provider of mobile entertainment services. It is a unit of Openwave Systems, a Paris-based provider of mobile entertainment services. Microsoft will of course be leveraging the relationships with content providers to by using it with Windows Mobile and Zune. This has sparked off a round of rumors of the next Zune Phone concept as well, but that is just a bunch of air at this point.

The mobile space is more developed in Europe than it is in America, so it makes a lot of sense for Microsoft to start moving in that direction, afterall they have a well established base in Europe. When this deal will be completed is not finalized yet. Not only will this acquisition provide access to content providers but also links to carriers like Virgin Mobile and T-Mobile to distribute the content.

This is a major update. It does not just affect the device hardware functionality but also the software and online interaction as well. The following changes have been reported: there is finally a video marketplace, social aspect, you can now sync Zune cards, auto playlists, TV shows can be downloaded, Zune reminders, you can sync groups, video browsing, genre browsing, gapless playback, reputation badges, Windows Live Now Playing can now be accessed, search friends by their real names, instant friends, user reviews for albums and artists.

All I can say is WOW. This is seriously a major update which will take the Zune experience to the next level. One big area that Microsoft has really focused on is the social part. They are really trying to make your Zune not just an MP3 player but a place where you go to buy songs and communicate with your friends about songs and swap songs. They want Zune to be THE place where you go for music. Interesting, let's see how this pans out...

Zune Arts, the program that Microsoft has created to bring unique art to the Zune is working on a graphic novel called "The Lost Ones" written by Steve Niles, of 30 Days of Night fame. This novel is about the adventures of four characters who are on an epic space adventure. Different artists will work on each of the four chapters of the book creating a unique novel experience.

The four artists are Dr. Revolt of the NYC based graffiti group The Rolling Thunder Writers, Gary Panter a surreal and raw style illustrator, Morning Breath a pair of Brooklyn based designers, and Kime Buzelli a painter and fashion designer. Microsoft with Zune Arts is really trying to reach the trend setting artistic crowd. Zune Arts is a program which provides a platform for aspiring artist to share their work.

Microsoft initially launched the Zune with the tag line "Enter the Social." However, it wasn't much of a success on the social front. It had the ability to share music via WiFi in a very limited and restricted way, and it didn't catch on. Now Microsoft is back with a new plan. They have just enabled a feature that allows users to download their friends' nine most recently listened songs and nine others that are tagged as favorites.

To get this service, which is done through Zune Social, users have to be subscribed to the $14.95 a month mobile music service known as Zune Pass. Microsoft faces a major uphill battle in unseating Apple from its dominant market share and king of the hill status. Nonetheless, they have not given up the fight and are still going strong to take out the iPod.

The New York Times has suggested in one of its articles that Microsoft will be putting a tiny "Copyright Cop" in its future versions of Zune as part of a deal with NBC to get its videos on the portable player. Officially Microsoft has denied such a thing, saying instead that it has agreed to work with NBC on a number of issues but no plans for any content filtering system.

Personally, I don't see Microsoft implementing any sort of DRM system. The reason is that Microsoft is trying to sell its player to a group that is not very accepting of DRM solutions. On top of that, Old Media is also starting to understand that DRM is not the answer to their woes. Microsoft is going to launch its Zune video store later this week.