Dance piece, for iPod shuffle

Filed under: Analysis / Opinion, iPod Family, Multimedia, iTunes, AppleApparently this iPod-enabled dance performance has been around for quite a while (here's an NYT piece on it from 2006), but it's the first we've heard of it, and it's pretty amazing. The 87-year-old choreographer, Merce Cunningham, who has collaborated with John Cage and Andy Warhol among others, has created a dance performance piece called eyeSpace. Apparently, the music, which can be downloaded preperformance and is...

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Will Google's Android Play DOS to Apple's iPhone?

Daniel Eran Dilger Today's broad array of smartphone operating system contenders are offering lots of potential answers to a problem that only requires one. It appears the market has two options ahead: either pool generic hardware makers behind a single operating system and deliver a smartphone marketplace that resembles the Windows PC market, or watch them fall to a dominant leader and have a smartphone market that resembles Apple's iPod ecosystem. This decision isn't going to be made by a class of intellectual elite, or by government mandate. it's going to be made by the market itself. Here are the factors that will influence the outcome, either marginalizing Apple's iPhone into a niche as the company has twice experienced previously at the hands of DOS in 1981 and Windows in 1991, or positioning it as the dominant leader as Apple has achieved for itself with the iPod since 2001. The third segment in this series looks at Google's Android and the Open Handset Alliance as a possible “DOS-attack” against Apple's iPhone. Subsequent segments will look at Nokia's newly opened Symbian and other mobile contenders challenging the iPhone. Will the iPhone Meet its Match from a Modern Day DOS? Will Windows Mobile Play DOS to Apple’s iPhone? Will Google's Android Play DOS to Apple's iPhone? Will Symbian Play DOS to Apple's iPhone? Google Acquires Android. In 2005, Google purchased a startup named Android, which had been in business for nearly two years. The secretive startup was known only to be working on software for mobile phones. It was being run by a who's who of mobile industry veterans, including Andy Rubin, the founder of Danger. Rubin had earlier worked at WebTV along with Chris White and Andy McFadden, both of whom had also joined Android. Richard Miner of Orange and Nick Sears of Tmobile also brought their mobile provider experience to Android. At the time of the acquisition, Google didn't announce any plans for Android and instead only told BusinessWeek, “We acquired Android because of the talented engineers and great technology. We're thrilled to have them here.” It appeared that Google was only going to be expanding its search services for mobile phone users, along the lines of the Google SMS answer system it had recently released. Google Buys Android for Its Mobile Arsenal - BusinessWeek Windows XP Media Center Edition vs Apple TV: The Fall of WebTV The GPhone Myth. As reports began to leak out about talks between Google and hardware makers throughout 2007, rumors began to fly about “the GPhone,” a competitive offering that was supposed to take on the iPhone. Some phone enthusiasts hoped Google would jump in to rescue the struggling OpenMoko project and turn it into a viable project that could attack Apple's new smartphone. In October 2007, I printed the Great Google GPhone Myth, taking apart the idea that Google would be directly competing against the iPhone, and describing that Google was really working on a free alternative to Windows Mobile as a conduit for getting its search and related services on a broader variety of mobiles. Google's services were already on the iPhone. In November, Google played its hand: it had organized a consortium of companies called the Open Handset Alliance to develop open standards for mobiles. The first product from the group would be Android, a mobile operating system built on the Linux kernel. Google wasn't getting into the phone handset business at all; it was only making sure that its mobile search products would not risk being marginalized by the threat of Windows Mobile on phones in the same way Microsoft had been working to leverage its PC monopoly to push Google search off the Windows desktop. The Great Google gPhone Myth Introducing Android: Leader of Linux. Two weeks later, Google released an early version of the Android software. On top of a Linux kernel, Android uses a specialized version of a Java Virtual Machine that takes Java language code and turns it into what Google calls “Dalvik bytecode” rather than Java bytecode as a standard JVM would. This allows Google to leverage existing and familiar Java language tools without paying Sun for a Java license. Like Mac OS X and its fraternal iPhone OS, Android includes a variety of open source libraries, including SQLite and WebKit. On top of that, Google developed a series of frameworks that handle the tasks Cocoa Touch does on the iPhone. Android also bundles a set of applications. While Apple adapted its existing Mac OS X to work in a mobile environment to create the iPhone OS, Android is more like a customized Java environment running on a specialized mobile Linux variant: elements of maturity in an otherwise experimental new platform. What is Android? -Google Android was by no means the first mobile OS using Linux. Both Palm and its amputated ACCESS software arm have Linux-based mobile platforms. Nokia has Maemo, which it uses in its Internet Tablets, and also recently acquired Trolltech and its Qtopia mobile Linux platform. Motorola has teamed up with MontaVista Software to use its Mobilinux. Intel created the Moblin project for mobile Linux, aimed at Internet devices. Google's OHA also isn't the first consortium to attempt to standardize a mobile Linux platform. The OSDL started the Mobile Linux Initiative to define requirements for hardware; the Consumer Electronics Linux Forum (CELF) then worked to define various phone profiles aimed at the Japanese market; the Linux Phone Standard (LiPS) Forum tried to do the same thing in Europe. In 2007, LiPS was folded into the new LiMo Foundation, along with the OSDL. All of these committees have had some overlap and some complementary features. Several of Google's OHA partners are also LiMo members, including NTT DoCoMo, Wind River, and Motorola. So why didn't Google just join LiMo? “LiMo, very candidly, wasn't moving fast enough,” OHA board member John Bruggeman told CNET. Google hopes to herd the Linux cats into a progressive, structured platform that can battle against Symbian and Windows Mobile to succeed as the new DOS of smartphones. Will Google fracture or unify mobile Linux? The Presumption of the Necessity of DOS. The previous segment examining Windows Mobile pointed out how the PC industry as a whole assumed that Microsoft's desktop Windows monopoly would easily take over dominance in the MP3 player market, pushing Apple into a niche position. This was expected because DOS had pushed Apple's early computers into a reduced role starting in 1981, and Microsoft had repeated this again in 1991 when the DOS world migrated to Windows, effectively pruning Apple's Macintosh into a Bonsai platform. The inability of one company to dominate any product category has been frequently repeated by PC industry pundits as a given, despite the fact that history is full of examples of this happening. Sony dominated personal music players for two decades under the Walkman brand even while equally large competitors tried to push it from this position; Nintendo has similarly owned handheld gaming despite ill-fated efforts to grab a piece of its pie by products running a generic platform such as Microsoft's WinCE (Gizmondo), Linux (GP32), and Symbian (N-Gage). In fact, outside of the Windows/DOS PC, there are actually few examples of a generic platform taking over an industry. Nearly every other consumer-facing product uses proprietary platforms: car makers, stereo equipment, appliances and so on typically all use designs custom to their maker. The paradox of the Windows PC market has been that Microsoft's broadly licensed software supposedly saves hardware makers from investing in software development while ensuring compatibility, when in reality it adds significant costs to PC makers while limiting their ability to differentiate themselves. That explains why PC makers have been perpetually merging together and going out of business while Microosft has rolled in money over the last two decades. Parallel efforts to copy Microsoft in broadly licensing an operating system have regularly failed: IBM's OS/2, Apple's Mac OS, Palm's PDA OS, even Microsoft's own efforts to duplicate Windows dominance in other markets, from copy machines to PDAs to smartphones to SPOT watches to music players. The closest copy may be Symbian, but its customers are partners, not simply consumers of a generic third party's operating system as Windows licensees are. That indicates it is not necessary to duplicate the dominance exercised by Microsoft over the PC industry in the smartphone market. Google's Android and Symbian exist more as technology sharing pacts among manufacturers, but both aspire to take Microsoft's DOS role among smartphones. However, the idea that Apple's iPhone must be dethroned by a modern-day DOS, whether Windows Mobile, Android, or Symbian, is not just debatable, but does not sync with the reality of more recent events. Apple's recent history of the iPod further refutes the idea that a software analog to Microsoft is needed. The iPod Emergence: Apple & Pixo vs IBM & Microsoft. Apple's iPod in 2001 made no effort to clone the DOS business model; it actually did the opposite. When Apple entered the market, there were a number of existing MP3 devices using custom software, hardware designs, and DRM codecs. The iPod used off the shelf components to deliver a custom MP3 player using third party software, but Apple also added its own technologies: easy to use sync with iTunes, a fast Firewire interface that made uploading music far faster than the prevailing USB 1.0, and an attractive industrial design. With the iPod, Apple played the role of IBM in 1981, using Pixo's embedded operating system to enter the market quickly, just as IBM had used DOS. The difference was that Apple didn't direct any market attention toward Pixo and added a lot of value on top of that core embedded OS. A modern day Compaq couldn't simply clone the hardware and license Pixo to run on it in order to compete against the iPod, because the iPod was much more than just generic hardware running Pixo software. As the iPod developed, Pixo's role diminished and was eventually displaced. Just like IBM, Apple jumped into a new market just as demand was beginning to explode. Apple made MP3 players far more attractive to a general audience by delivering greater playback capacity than most entry level devices offered, along with an ease of use that encouraged buyers to jump in at the higher end of the market. That left Apple with not only the lion's share of the market, but also by far the most profitable segments of the market. Two decades prior, IBM badly fumbled its play with the early PC and ended up irrelevant in the PC world by the late 80s, sideswiped by Microsoft's DOS and the cloners who were licensing it in parallel, notably Compaq and later HP and Dell. Steve Jobs had witnessed that happen, and was determined to not let it happen again to Apple. Rather than being manipulated by a software middleware vendor as IBM had, Apple worked to incrementally develop the iPod market itself. After consuming the hard drive-based player market, Apple took on the Flash RAM-based market with a tiny hard drive system used in the iPod Mini, and followed up with Flash-based devices of its own in the Nano and Shuffle. This allowed Apple to progressively serve an increasingly wider market, incrementally growing upon an established foundation. With the iPod, Apple became, in effect, an IBM with its own internal Microsoft. Microsoft's Failure Despite Features. In contrast, Microsoft entered the music player market by promoting music player hardware reference designs around WinCE. However, it was unable to ship a finished design until the iPod had become firmly established around 2005. Later branded as PlaysForSure, the devices were sold by various hardware makers and all purported to support the same DRM and the same music subscription services while also offering a broader array of hardware that presented video before the iPod did, supported wireless before the iPod, and so on. Despite these unique features, all of those PFS designs still failed. Microsoft blamed the failure of PFS upon its music store and hardware partners and decided to take Apple on itself in 2006. It relaunched a Toshiba PFS player as its own device under the Zune brand, adding WiFi music sharing features and a larger display than the current Pods had. It failed dramatically as well. Did Microsoft's attempts to float a new DOS among music players fail because of Apple's success, or due to Microsoft's own problems? The failure of the Zune, which followed the iPod model rather than the DOS model, seems to suggest that Microsoft itself was to blame. Consider too that Microsoft's Windows Mobile phones, which use the same underlying operating system as its failed PlaysForSure music players and the Zune, had similarly flopped even before Apple could release a charismatic phone equivalent to the iPod. Of course, when the iPhone was released, it hit Windows Mobile hardest. The iPhone made Windows Mobile Smartphones look ridiculous and underpowered, and made Windows Mobile Pocket PC phones look clumsy and awkward, despite the fact that they both supported a variety of features the iPhone didn't, including the ability to edit documents, capture video, send MMS, and so on. Simply adding on features did not enable Microsoft to compete against Apple. The only conclusion that can be drawn from all this is that competing against Apple requires more than just having a feature arsenal. Microsoft's failures in themselves do not necessarily mean that Google's Android will fail in its attempts to float its own smartphone platform. Why Microsoft’s Zune is Still Failing Microsoft’s Zune, Vista, and Windows Mobile 7 Strategy vs the iPhone Will Google Succeed where Microsoft Failed? Microsoft's demonstrated inability to successfully enter consumer markets for MP3 players and smartphones has given observers little faith that the company will somehow turn things around in late 2009 when its next generation of devices are expected to be released. However, prior to that the first fruits of Google's efforts to build its own smartphone operating environment will arrive. Will Google's Android take over Microsoft's crown as the “DOS vendor” among smartphones? Supporters of Google's Android project point to some parallels between Android for smartphones and Windows on the PC: Android will allow hardware makers to differentiate in ways that can offer features Apple can't (or doesn't want to); it should allow software developers to offer features Apple does not allow on the iPhone; it embraces open, hobbyist experimentation in ways that Apple currently isn't; and it opens the potential for content providers that Apple is not interested in allowing. Openness is Android's key competitive feature. Will all this openness allow Google to unseat the iPhone to become the primary platform developers want to participate in, and subsequently soak up the market for third party hardware makers that Windows Mobile serves? While Google currently has no market share due to the fact that no Android phones have yet shipped, it does have broad vocal support from a variety of the same kinds of hardware manufacturers that supported DOS and Windows and helped to make those platforms successful in the desktop PC market. HTC and Android. The first Android phone is expected to be the HTC Dream; Taiwan's HTC (High Tech Computer) also manufactures Palm's Treo Pro phone as well as many of the most visible Windows Mobile devices. In addition to models produced under its own name, HTC also sells Windows Mobile devices under the Dopod brand, as well as no-name phones branded by providers, such as AT&T, Orange, Sprint, T-Mobile, Verizon Wireless, Vodafone, and others. HTC will also be building the XPERIA X1 Windows Mobile phone for Sony Ericsson. HTC was quick to throw its support behind Android despite its long term alliance with Windows Mobile. Why would it so enthusiastically support an unproven platform from a company that has no experience in consumer hardware platforms? One can only assume that HTC is not happy with the current state of Windows Mobile, and desperately wants another “DOS” to succeed where Microsoft's has so spectacularly failed. As an Original Design Manufacturer for Palm, HTC watched as Palm adopted Windows Mobile in place of the Palm OS and subsequently fell even deeper into crisis. Palm's only successful phone since has been its Palm OS-based Centro. HTC undoubtedly sees Android as its ticket to becoming the next Dell, but without a similar dependance upon Microsoft. Android for mobile phones is essentially playing the role of Linux for PCs, except that it has the backing of a major company behind it. Can Android Take on the iPhone with Openness as its Feature? As great as this sounds, it's important to consider that Linux on the desktop has made no significant progress in eating into Windows dominance after a decade of trying. Being open, free, flexible, and decentralized hasn't been enough of an advantage to get consumers to migrate from Windows to Linux in any fraction of significance. Similarly, in the music business, Linux-based MP3 players have had no impact on the iPod, despite offering more features, flexibility, support for additional codecs, and so on. In the mobile phone area, Linux enjoys a sizable portion of the smartphone market, but this is almost entirely due to phones sold by Motorola in China, where the advantages of Linux' openness are void. Motorola's Linux phones offer nothing to users in terms of openness or flexibility, and are really no different in terms of features than other appliance 'feature phones' based upon closed operating systems. And again, a key problem with assaulting Apple in a feature war is that neither the iPod nor the iPhone became popular by being “highly featured.” They both delivered perhaps 80% of the functionality found in all other devices in the market. Rather than trying to match every feature and cater to every niche as Microsoft had with Windows Mobile, Apple's devices did a few things very well at launch, and incrementally developed into full featured devices that still lack some of the more unique features of their competitors. Further, in terms of openness, the demographic that embraces Linux' characteristic freedoms is not the same as the demographic that buys smartphones in quantity and then pays for data service. This is a critical fact to consider because a big part of the iPhone's success stems from the fact that it is being pushed by mobile providers who want to capture the cream of the market willing to pay a premium for data services. The Frankenphone. Combining the fractured aesthetic of HTC's Windows Mobile phone hardware with Android's software, based upon Linux' perpetually unfinished DIY openness and Google's Java-like development platform, will not result in a product similar to the iPhone. Instead, it will look a lot like phones that have already failed in the market. Apple's advantage comes from slick hardware designs with a close attention to detail, combined with software that purposely does less so that it can do what it does better. Even Apple's own conservative attempts to broaden its software capabilities with iPhone 2.0 have resulted in instability problems that can be blamed upon both Apple's early releases of its phone operating system and software from inexperienced third party developers new to the platform. Would the current frustrations with iPhone 2.0 be somehow mitigated by additional openness that also embraced all kinds of variables from different hardware makers with less quality control than Apple, a loose committee of additional cooks working to serve up operating system features targeted at every possible conceived need, and a wider third party software group with fewer constraints on illegal behaviors? The Failure of Open. While it is politically unpopular to criticize the well meaning efforts of open source contributors, the failure of Linux on the desktop, the failure of the vaporware Indrema game console, and the failure of the OpenMoko project to deliver a workable phone within a year of its deadline all underline the serious problems open development faces in the world of consumer oriented devices. Open has simply failed to deliver on its promises in the world of consumer hardware. OpenMoko was supposed to release its first mobile phone to consumers for $250 several months in advance of the iPhone. When the iPhone shipped, the group then announced new plans to get its phone out by the end of 2007. Instead, this spring the group announced new plans to move to an entirely different development platform, and ship its phone mid year for $400 with limited functionality and incomplete software outside of basic GSM phone features. Linux's notable successes, from Motorola's Linux phones to the Tivo DVR to Linksys Routers, have often come without any associated openness or freedom, and were instead delivered simply to provide their manufacturer with a free kernel to build upon. This indicates that while Linux may find its way into an increasing number of smartphones, it will likely not be accompanied by the glorious freedom of an open development environment Google has said it would offer with Android. Apple iPhone vs the FIC Neo1973 OpenMoko Linux Smartphone Can Google Succeed Where Open Has Previously Failed? Despite “openness” being Android's strongest competitive feature compared to Apple's iPhone, Google recently revealed that its wide-open development model is intentionally gravitating towards a closed association of top tier partners due to practical considerations. In July, Google accidentally sent out a notice that revealed that it had been seeding private SDK updates to only a subset of its contributors, angering those who believed that Android would be as open as Linux on the desktop or the OpenMoko project. Further, Google has restricted initial development to higher level APIs just as Apple did, further indicating that Google itself realizes that being wildly open to impress a minority of hobbyists will not result in the commercial success of its new platform. That serves to neuter Android's primary advantage over the iPhone. Without delivering on the premise of being wide open, Android is really just a less mature set of Java libraries used to create a specialized binary that runs on a Linux foundation. Unlike Apple's iPhone, Android phones won't have a slick user interface developed by professional artists, nor the iPhone's legacy of mature software development frameworks crafted over the last thirty years, nor the iPhone's tightly integrated hardware with award winning industrial design, nor its marketing power tied into the iPod and Apple's retail stores. Android won't be an open iPhone, it will only be a Windows Mobile phone with a better kernel that runs specialized Java software instead of Win32 or .NET code. Don't expect consumers to be impressed by that. The Biggest Missing Feature. There is one remaining factor that strangles to death any last remaining hope that Android might assassinate the iPhone and assume the crown of the “DOS of smartphones.” That is: Android delivers zero price advantage to consumers. In 1981 and 1991, consumers who wanted Apple computers faced the sticker shock of a somewhat arrogant price tag. Apple sold its computers, as it still does, at the higher end of the market, but there was simply far more range in prices available. In 1981, that meant the Apple II was $2600 and the new Apple III was $3500, even before you added a monitor. On the low end, Commodore sold its far less powerful, but “still a computer” Vic-20 for $300, while IBM entered the market with the IBM PC at $3000. Over the next few years, Apple focused on delivering additional sophistication at the same price, releasing the $10,000 Lisa and then the $2,500 Macintosh. IBM continued selling PCs in the same $3,000 to $10,000 range, but other DOS PC vendors began selling machines at prices that ranged as low as $1500. That left Apple with a roughly $1000 price premium over low end PCs. The products weren't really comparable, but consumers only saw the huge price difference. In 1991, Apple was still selling moderate to high-end Macintoshes for $3,800 to $10,000; the crippled Mac LC was $2500, and obsolete-at-birth Mac Classic ranged from $999 to $1500. Windows allowed PC makers to ship a functional $1500 PC and claim a rough approximation to Apple's $2500 entry level system, maintaining that apparent $1000 price premium. Today, pundits are lucky to find a Dell or HP system that is even a couple hundred dollars less than a comparable Mac. However, in the smartphone business, the iPhone 3G is now the same price, if not less, than generic competing phones on the market. Even more significant is the fact that the price of the phone hardware is nearly nothing compared to the cost of the service plan. This fact simply eases any price premium that could cause buyers to flock to a smartphone running a generic operating system over buying the iPhone 3G, regardless of whether it runs Windows Mobile or Android. 1990-1995: Planting Software Seeds Android Partners Have Already Failed. That same pricing principle similarly prevented buyers from considering many of the alternatives to the iPod. While Apple's original iPod models were more expensive than many of the first MP3 players on the market, they were price competitive with models offering similar features. By 2004, it was Apple who was undercutting MP3 competitors on price. Microsoft offered zero price advantage when it began selling the Zune, a major factor in its failure, but Microsoft simply couldn't out-price the iPod; it was already losing money offering the Zune at the same price as the iPod. Apple now has tremendous market power in buying RAM and other components that will prevent any competitors from being able to offer a huge discount over the iPhone's $199 price tag. Even if competitors were to give their phones away, they would only offer a $200 discount to users who would then still need to pay the same mobile fees to use the phone. Android's other partners, including Samsung and LG, have already failed to capture any significant market share in the music player market. Are they going to maintain their position as smartphone makers now that they face similar competition from Apple, its iPod ecosystem, its iTunes Music and Apps Store, Apple's retail store experience, and other factors that are pushing the iPhone? If they can, it is not obvious how partnering with Android will help. Other Problems for Android. Android was announced in early November 2007 and was followed with an early preview SDK within a couple weeks, a month ahead of Apple's initial announcement of the iPhone 2.0 SDK. However, between March and July 2008, Apple delivered nine progressive releases of its SDK, opened its App Store, and sold 60 million apps, raising $30 million to support iPhone software development in just the first month. It has since released three more SDK updates to developers related to iPhone 2.1, which is expected next month. Android just published its first open SDK beta update earlier this week, warning developers that “applications developed with it may not quite be compatible with devices running the final Android 1.0.” Additionally, Android still has no phones available. By the time the HTC Dream is expected to launch, Apple will have an installed base of around ten million iPhone (and iPod touch) users supporting software development through iTunes. The business model for selling Android apps is no better than that for selling jailbreak iPhone apps: there is no iTunes Apps Store to promote them, so users will have to track them down on their own. Android developers also have no real freedom that jailbreak iPhone developers lack. The only difference is that there are ten million iPhones to sell jailbreak apps to, and currently zero Android phones. If selling a jailbreak iPhone app sounds like more trouble than its worth, imagine trying to sell Android apps to a non-existant audience. Now add the official iPhone App Store into the mix, where publicity, promotion and profits are booming. What platform is going to have the most applications? How many users will flock to a smartphone platform with no apps? The wisdom of releasing a desirable phone and achieving a significant installed base before releasing an SDK makes a lot more sense in retrospect. Additionally, while Apple has a decade of experience in shipping regular updates to Mac OS X and its Xcode developer tools, Google has only shipped a random assortment of web-oriented SDKs (a number of which have been abandoned) as a tangent to its core business of selling advertisements. When the Android SDK 1.0 is finished later this year, developers will not only lack an installed base to sell their apps to, but will also have no high profile market for selling their apps in, and subsequently no financial incentive to develop applications that add value to the Android platform, just like Linux on the PC desktop. Around the same time, possibly within the next month, Apple will be shipping its second major OS release: iPhone 2.1. Apple will also be upgrading its entire user base to the new software so that developers will have a cohesive platform to target. This mirrors the efforts Apple has taken to upgrade its Mac OS X users to the same reference release. Mobile developers will be seeing money pouring in via iTunes while crickets chirp in the Android section of various mobile online stores. Apple’s iPhone Vs. Other Mobile Hardware Makers: 5 Revenue Engines Same Same, But Different: DOS Model Problems. Android developers will also have a series of other problems to manage. Like Windows Mobile, Android is intended to support everything, from BlackBerry-style keypad phones with a small touchscreen to the simple Windows Mobile Smartphone form factor lacking a touch screen to iPhone-like full size touch screens. Also like Windows Mobile, Android phone makers will have the option to leave off Bluetooth, WiFi, GPS location services, graphics hardware acceleration, and so on. Each Android phone will also have unique camera hardware, support for different video and audio codecs, and varied support for other differentiating proprietary services demanded by mobile operators. This will force developers to to make complex decisions regarding the lowest common denominator they choose to support. So while the iPhone will have a cohesive feature set, a managed software environment, and a functional market, Android will be a loose federation of hardware makers selling the same random features found on Windows Mobile today, with a chaotic development environment that lacks any central market for users or developers. And it will be run as an experiment by a company with no experience in consumer hardware or platform development. The Missing Tap. One specific example of the “DOS model problem” is that Android currently does not support multitouch. It's not touched on in the API, and Google quietly tap dances around its omission. Why no multitouch? Because multitouch screens are expensive, and most OHA hardware members are more interested in making a profit in a competitive phone market rather than impressing consumers as Apple did with the iPhone. Most existing smartphones, even those trying to directly rival the iPhone, use a stylus driven, pressure sensitive tap screen or a simpler, cheaper touch technology that lacks support for sensing multitouch. The iPhone's screen can actually sense up to five fingers at once, but the primary feature multitouch offers on the iPhone is the two fingered tapping and the pinching effects everyone associates with it. Android could certainly support multitouch if there were a demand for it, but that's the point: Google knows that its hardware partners are cheap and unlikely to put out hardware that actually competes with the iPhone. Instead of using expensive technologies that deliver clever yet largely invisible functionality, OHA members, just like PC makers, are far more likely to add flashy, impractical gadgety fluff that's cheap to tack on, such as slide out keyboards, neon tubes, and scratch and sniff stickers. That's how you impress gullible nerds on the cheap. Google itself is blowing smoke and erecting mirrors to distract from the reality that it being a “DOS vendor” means supporting bargain basement hardware from penny pinching duplicators. Android has been demonstrating some “wow” features such as a Street Maps app that pans around based on an internal compass in the demonstration phone. The problem is that that kind of thing only makes for a fun demo. Nobody needs to twirl around their phone in the air to see a view of the other side of the street, but everyone who has used an iPhone will wonder why they can't pinch to zoom out. Even worse, most Android phones aren't going to have a compass built into them, so Google is demonstrating features most Android users won't be able to use. That Sounds Like Microsoft… Google's design decisions are beginning to look a lot like Windows Vista; rather than actually working to make laptops boot faster, Microsoft came up with the idea of adding a small screen to the back of Vista laptops so users could check their email without having to wake the system up. But this was a stupid idea for a number of reasons, the most obvious being that most users just want a laptop that boots up quickly. Few laptops got the mini screen, but every user who tries Vista on their laptop will wonder why it doesn't boot up as fast as Mac OS X Leopard. In the same way, Google is advertising features for Android that most users won't ever see in their actual phones while ignoring things people will expect based on their exposure to the iPhone. Android is simply selecting the wrong features. Android will offer the advantages of supporting MMS, recording video, and the list of other features Windows Mobile already supplies. Those features didn't stop Apple from firing past Microsoft in the smartphone arena however, just as the Zune's highly touted WiFi and screen didn't phase iPod buyers. Incidentally, just months after the Zune, Apple had not only demonstrated a larger display but a higher definition multitouch screen, and not only WiFi, but functional WiFi that could be used to browse the web or check email. This suggests that Apple, with its faster release schedule, won't stay behind any of the leading features potentially offered by Android for very long. Android partners, however, will find it as difficult to catch up with Apple's unique features, just as Microsoft has been stymied to keep up with Mac OS X, the iPod, and the iPhone. The underlying reason: both Google and Microosft are tasked with maintaing support for a huge variety of hardware options demanded by all their partners. Apple has the unique circumstances to do only what it needs to do itself. Android in Windows Mobile's Shoes. Like Windows Mobile, Android faces a difficult market. In the US, it competes against the popular BlackBerry in corporate markets and the iPhone among consumers. Worldwide, it competes against entrenched market leader Nokia. The difference is that Google, unlike Microsoft, has no in. Windows Mobile was adopted by Windows-bound IT shops despite its weaknesses. Nobody has any preexisting reason to try an Android phone apart from hobbyists and open software enthusiasts, a demographic that has done little to move Linux on the PC desktop. Google also lacks Microsoft's installed base; it's starting from zero. The smartphone industry initially doubted Apple's chances of making much progress with the iPhone, despite the company having the Mac platform, the iPod, retail stores, platform development experience, marketing savvy, industrial design prowess, and so on. Google doesn't have any of those things. Mobile Providers vs Android. Apple also started with an exclusive partnership with AT&T, a three legged race that demanded effort from both. Google is hoping that hardware makers handle the hardware details and that mobile providers will be excited to sell its Android phones. While hardware makers such as HTC clearly appreciate having found a free alternative to Windows Mobile, it's not obvious why providers would be excited about Android, as it promises an openness that most mobile providers strongly oppose. AT&T took a big risk in getting behind the iPhone, as the phone encouraged users to use email rather than fee-based SMS and MMS, it supported WiFi for data access, and it bypassed AT&T's MEdia Net services to plug into iTunes instead. Verizon refused to parter with Apple and grant it those kinds of concessions. Is AT&T going to take a similar risk to partner with a phone that is not exclusive to it, and is Verizon now going to open its arms to support phones that do not exclusively support BREW, VCast and its other proprietary services? While Android may well eat into Microsoft's Windows Mobile business by stealing away its hardware makers, it seems unlikely that Android will ever serve as more than free alternative to Windows Mobile in a market where Windows Mobile is increasingly irrelevant. Android may have the dubious distinction of swallowing Microsoft's mobile business the same way Microsoft ate up the Palm OS, but even if it accomplishes that goal, Google will likely find itself unsustainably hungry immediately afterward. It will also find itself swimming in a shark tank of hungry rivals, including Nokia's Symbian, RIM's BlackBerry, and Apple's iPhone. Symbian is the final generic platform vying for the opportunity to play DOS in the smartphone market. The next article will examine Nokia's chances in its bid to match Microsoft's PC dominance in the mobile market while setting out in a new venture to copy Android's open software model. Did you like this article? Let me know. Comment here, in the Forum, or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast (oh wait, I have to fix that first). It's also cool to submit my articles to Digg, Reddit, or Slashdot where more people will see them. Consider making a small donation supporting this site. Thanks!
Is Apple's MobileMe Secure?

Daniel Eran Dilger A recent article presenting how MobileMe works was been roundly criticized by at least three different bloggers. While the original article did not primarily address MobileMe security, the statements made about MobileMe's security do warrant some additional detail and clarification. In contrast, much of the criticism was wildly overstated to the point of actually misinforming users about the actual state of MobileMe and email security. Here's a look at what's involved. Inside MobileMe: Web 3 and Web Client-Server apps MobileMe's Web App Data Transactions are not SSL Encrypted. I enjoy reading John Gruber's excellent Mac resource, the Daring Fireball. It initially stated, “AppleInsider reports that the MobileMe web apps supposedly do use SSL, even though you don’t see 'https:' URLs or the 'secure' lock icon in your web browser.” However, the referenced article did not ever state or even suggest that MobileMe's web apps use SSL or other forms of encryption when accessing the web apps for email and other services, outside of login and account settings. Gruber corrected the misstatement after being notified of this. For the record: Apple's MobileMe desktop email can be secured via encrypted SMTP and IMAP; Apple presents details on how to ensure this is set up, as users may not have this enabled by default. Address Book and iCal sync on Mac OS X is secured automatically when it transacts with Apple's server cloud. Windows apps use the same security when syncing their data via Outlook through iTunes for Windows. The iPhone and iPod touch also support encrypted email and all push messages are also secured via encryption. However, the MobileMe web apps are only secured by SSL through the initial login authentication session and again only when users access their account information to do things such as change their password, update their billing information, or order additional services. Outside of that, all email, calendar, and contact data that is exchanged between the web client and the cloud is not encrypted, and can be sniffed by anyone with access to the network (below, click to enlarge). What Unencrypted Web Apps Mean for Users. This means that as you send email, read emails, create new calendar items, view calendar events, and view contacts, that data is being sent in the clear across the Internet between the web browser and the cloud. This does not mean that if you access your email, anyone who might be sniffing traffic could intercept your account information, your login, your credit card information, or change your password. They also could not access anything you did not access yourself, so creating an email does not automatically allow them to read through your contacts, for example. MobileMe's limited SSL protection on its web apps presents a real (albeit unlikely to be widely exploited) security hole. However, it is important to note that Microsoft and Yahoo provide the same, limited level of SSL protection for their web services as Apple does; both Yahoo Mail and Microsoft's Live Hotmail send data in the clear after the initial login. Google has just started offering SSL protection by default for Gmail (below, click to enlarge). A followup article recommended that Apple should use the same IPSec-type of security for its MobileMe web services as it does for desktop sync. Other critics have noted that because Apple charges $8.25 per month for MobileMe, it should provide a better level of security than Microsoft or Yahoo and at least match Google. At the same time, it is important to recognize that adding SSL encryption does not automatically or even fully secure email. Apple’s secret “Back to My Mac” push behind IPv6 SSL is Not a Panacea. Blogger Jens Alfke, who works for Google, also took the MobileMe article to task. Alfke wrote that Apple's MobileMe apps not only do not perform data encryption, but also leave open the potential for rogue hackers to perform DNS forgery or phishing attacks that SSL could help prevent, or at least flag as a problem for the user when they occur. For example, a user trying to access webmail at me.com could hypothetically be redirected to a fake me.com by a bad DNS server, Alfke wrote. With SSL in place through the entire transaction, the user should at least be warned that the impostor me.com site did not match its known certificate. Without SSL, MobileMe web apps could therefore theoretically fall prey to a man in the middle attack, where all transactions were passed through a malicious user's third party control for tampering or viewing. Additionally, Alfke theorized that the web apps themselves could be replaced entirely by a fake site that pretended to be MobileMe in an Invasion of the Body Snatchers scenario. There are two problems with these scenarios. Alfke's assumption that MobileMe's “unauthenticated JSON exchange” could be easy to exploit, allowing redirect via bad DNS, is based in conjecture not fact. In response to his posting, Andrew Jaquith of the Yankee Group pointed out “there are lots of ways for two parties keep rotating secrets on both sides of the wire without disclosing them. See, for example, RFC 1938. I don’t know exactly what Apple is doing with JSON, but dismissing it just because it isn’t encrypted doesn’t prove anything.” Jaquith also described why SSL is not good for “verifying that software is 'genuine' or that a website is what you expect,” as Alfke claimed in dismissing Apple's security architecture for its MobileMe web services. Jaquith presented a scenario that would result in “a supposedly sniff-resistant [SSL] session that is still nonetheless 100% hosed.” Re: MobileMe Webmail Security — There Is None — Thought Palace Security through False Assurity. On top of that, even in cases where SSL could identify that something bad was happening, the only protection SSL really provides is to throw up a warning about security certificates that most non-technical users browsing at Starbucks would likely just click through to dismiss before happily giving away their credit card info, thinking they are safe because they are interacting with the “SSL” icon on for a website. When Apple transitioned from .Mac to MobileMe, users were presented with a SSL warning related to mac.com being redirected to me.com, and nobody seemed to even notice. SSL warnings are similarly not going to secure users who do not understand the security issues involved when they are sent to me.info or me.192168.com, or redirected by a malicious DNS to a server pretending to be me.com but failing the SSL check. Therefore, the benefits of adding SSL were greatly overstated by some critics, who also failed to even consider its drawbacks and limitations. If Apple simply added SSL, it certainly would, as stated in the original article, provide a “false sense of security that distracts from real security threats.” At the same time, the original article also understated the value SSL would provide web browser users. Adding SSL security throughout MobileMe's web apps, particularly those that deal with private data, would likely provide benefits that overshadow the added overhead. Despite that, it would not “secure” email for users, as described below. Never Cry Poppycock. While the original article was not purporting to be a tome on security, another response to it claimed special expertise in security. However, the author not only greatly overstated his case, but also resorted to unprofessional language in demeaning and dismissing the whole of an article just because he took issues with a minor portion of it. Rich Mogull's “MobileMe Web Interface Insecure, But Other Apps Get It Right,” published by Tidbits, provided some interesting comments on the subject, but began with an unnecessarily arrogantly overstatement of criticism that misstated the point and the context of the article in order to attack it as “patently false” “technobabble” “poppycock” and so on. Mogull didn't contact the author of the original article prior to writing about what he claimed was so wildly inaccurate. In addition, his own presentation is flawed and overstated in ways that are far more misinforming than any disputed details in the original article. TidBITS Safe Computing: MobileMe Web Interface Insecure, But Other Apps Get It Right Consider the Context. Mogull jumped upon a quote taken out of context, which was actually talking about how MobileMe and other JavaScript apps manage security related to JSON transactions. The context of the quote was the potential threat posed by sending self-executable JSON as opposed to simple XML data: “Being able to inject executable code into a system from malicious sources is a primary security problem. For that reason, web apps that transmit data using JSON have to authenticate with the server and regularly perform security handshakes to ensure that the data being sent back and forth is indeed coming from and going to a trusted source.” Mogull not only ignored that context, but only linked to the second page of the article, where the quote appeared without its immediate context. This enabled him to present that the comments on how JSON is secured were entirely about “why SSL was unnecessary,” which was not the point of the text at all. Quibble vs Patently False. The article presented that there was “unnecessary panic among web users who have equated their browser's SSL lock icon with web security;” that is accurate. While SSL encryption provides an additional layer of security, is not infallible. SSL security requires faith in fallible architectures that have regularly published vulnerabilities. Suggesting that SSL would be a panacea for webmail is false for a number of reasons: SSL can be spoofed; the browser only presents a cryptic warning when that happens, which many users would not know how to handle if it were being spoofed; and the larger fact that even SSL-secured web email is not really secure. The original article also correctly pointed out that SSL could provide a “false sense of security that distracts from real security threats.” Users who think that SSL web-based email is secure and therefore appropriate for sending confidential information are in for a rude awakening. Email is not secure, and carefully securing part of the email transmission is like only locking three doors of your car. It's better to understand that thieves can take anything in your car rather than to lock three doors and assume that you can leave valuables on your seat that cannot be taken. Mogull is arguing that Apple hasn't provided a functional lock on the driver side door of its webmail service, ignoring the fact that Internet email has no locks on the tailgate or the rear doors at all. This is penny wise and pound foolish security, and can be judged as the “patently false technobabble poppycock” that he quickly used to dismiss an article that was only touching on one aspect of security in a larger piece that was really addressing how MobileMe works as a service and the future potential it holds out. Mogull's reply was entirely about security, but it delivers the wrong message. It's not just easy to quibble about some of Mogull's details; his primary argument that the original piece was ridiculously wrong is just false, primarily because he overstates it in such an over the top, arrogant way. SSL is Not Evil. Having said that, the original article did understate the value SSL can add in securing webmail. SSL is useful in protecting users at the point where they will be most vulnerable when checking webmail, as they are more likely to be at a public terminal or perhaps using unsecured public WiFi when using the web rather than desktop clients (which are secure using encrypted transmissions) or an iPhone (similarly secured). SSL web apps would provide MobileMe users a similar level of security; Apple currently does not present this throughout the entire webmail session, only when the user authenticates and if they enter account details to change their password or order new services, as noted previously. With SSL, webmail addressed to other MobileMe users, as well as access to one's own contacts and calendar would be very secure. Email to other domains would continue to be exposed to Sending email is like sending a postcard: anyone intercepting the postcard on its way to the post box, from there through the mail system, or on the way to the recipients mailbox will be able to read what's written on it. Encrypted email is more like a letter written in code inside of a security envelope: it would be far more difficult to view its contents. However, SSL email only provides security for part of the trip; it's like carefully guarding your postcard until you drop it in the mailbox. This will prevent casual eavesdroppers from seeing what you've written, but won't protect you from having your postcard read from that point on, because it is wide open throughout the rest of the trip. In addition, when using a public computer or improperly secured WiFi network, the SSL security provided to a webmail user can't be trusted. A public PC is just as likely to have a spyware keylogger installed (if not more so) than a malicious hacker listening in on the transmission remotely. Your emails could therefore be spied upon before they were sent through the secure SSL pipe to the cloud. Similarly, using an unsecured WiFi connection opens a user to security issues that far outweigh having your email transactions possibly sniffed. Additionally, across the industry there are few webmail providers who deliver greater security that Apple's MobileMe. Google just recently added SSL, while Microsoft and Yahoo provide similar security to Apple's web interface in MobileMe: SSL encrypted authentication and account protection (you can't change your password in the clear on MobileMe, only in an SSL session). Doth Protest Too Much, Methinks. So while SSL isn't worthless, it does not present the bulletproof panacea that Mogull suggests it would in his over the top, excessively arrogant, one-sided attack piece. While the original article's understatement of the benefit that SSL could bring to Apple's MobileMe webmail could rightly be criticized, it did not say that the existing webmail service was secure. Instead, it said email was not secure and shouldn't be trusted, and that SSL could provide webmail users with a false sense of security. Mogull presented this in a mocking, simplified paraphrase as, “we think SSL would bog down performance without providing security.” He then concedes that he has overstated his own arguement by agreeing that SSL would have a limited impact on securing users, saying, “While there's a reasonable, if small, risk someone might sniff your connection when you are out in public, the odds of a redirection attack are extremely low.” Mogull could have presented his last paragraph, essentially warning users that MobileMe's web interface exposes them to unlikely but theoretically possible dangers, and explain that Apple's expanded use of SSL could help secure its webmail service from some of these kinds of attacks. Instead, the solution he demand would only provide limited benefits to users, while providing that suggestion that webmail is more secure that it really is in practice. This would suggest to user a greater level of security than would actually suggest, a far worse problem than acknowledging that email is simply not secure and should not be treated as such. Ridiculing the original article for presenting the fact that SSL is not a panacea, explaining unrelated facts about JSON, and describing that email shouldn't be trusted was all entirely unnecessary, and really just presented in a unprofessional fashion. Did you like this article? Let me know. Comment here, in the Forum, or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast (oh wait, I have to fix that first). It's also cool to submit my articles to Digg, Reddit, or Slashdot where more people will see them. Consider making a small donation supporting this site. Thanks!
Why Dan Frommer and Scott Moritz Are Wrong on iPhone Sales

Daniel Eran DilgerSilicon Alley Insider's Dan Frommer says Apple's announcement of reaching its million mark goal in iPhone sales three weeks early is actually bad news for Apple and is convolutedly "below plan." He also says the announcement only props up the speculative conjecture by Scott Moritz of the Street that Apple's iPhones sales are somehow woefully below expectations. They're wrong, here's why.The PremiseFrommer wrote that Apple isn't selling iPhones as fast as planned and is set to only sell around half of its 2008 goal.His premise revolves around the idea that if Apple were selling iPhones at "a constant rate," a million phones in 74 days would be five million per year. However, because it sold over a quarter of those in the opening day and a half at the end of June, Frommer calculates that sales of the remainder in the 72 days since the first of July mean that Apple is only hitting a "3.6 million annual run rate."By the end of 2008, that would only result in 5.8 million units instead of the ten million goal Apple. [Silicon Alley Insider: Apple's iPhone: 1 Million Is Below Plan]Strike One: The Run Rate Myth.The most obvious problem with that idea is the fact that devices don't sell at a constant “run rate." Apple's iPhone sales took off at launch much faster than the original iPod due to the fact that a swell of early adopters were ready to buy it after being convinced over six months of anticipation. At the same time, many potential buyers held off on plans to buy the iPhone until they could read reviews and get a real sense of how it worked. Many were also locked into contracts with Verizon or Sprint. With only six months of advanced notice, it will still be a few more months before the majority of buyers who want an iPhone even get the chance to buy one without having to pay outrageous fees to cancel their existing mobile contract. iPhone sales are also now taking on the network effect of the iPod, as early adopters show their friends. All these factors have difficult to estimate impacts upon sales that make trying to figure a static “run rate�? a very simplistic and pointless exercise.However, there is another factor that simply blows the entire idea of a static “run rate�? out of the water. Last November, I predicted that sales of the Zune would bomb that winter because Microsoft had failed to critically examine Apple's historical sales patterns. Sure enough, the Zune was thrown against the rocks by Apple's riptide. Frommer's idea ignores that same reality by imagining that iPhone sales will schlep along at a linear pace. Had Frommer tried to calculate an "annual run rate" for the iPod based on a portion of third quarter sales at any point over the last half decade, he would never have been close to accurate. That’s because Apple’s iPod sales roughly triple every winter quarter.In 2002, it sold nearly as many iPods in its winter quarter as it did the first three quarters combined: 219,000In 2003, it actually sold more iPods in its winter quarter than in the first three combined: 733,000In 2004, it again sold more iPods in its winter quarter than in the first three: 4,580,000In 2005, it sold more than 4 million units every quarter, but still sold nearly three times as many in the winter: 14,480,000.In 2006, it sold more than 8 million units every quarter, and then sold over 21 million in the winter quarter.In 2007, it has maintained quarterly sales between 10.5 and 9.8 million per quarter.[Strike 3: Why Zune will Bomb this Winter]Strike Two: The Have it Both Ways Myth.One particularly annoying bit of analysts' talk about Apple's expectations is that they can't seem to decide if Apple's projections are bad because they are conservative lowballs, or if they are bad for being overly enthusiastic figures the company won't be able to reach. They often try to describe them as both, loading contempt on both sides of the scale. This makes them look very foolish. Do they think we have no memory, or are they just changing their stories back and forth in sheer desperation?Frommer tried to argue both sides at once in the same article. Recall that Apple only ever gave two iPhone sales goals: one million by the end of the first quarter of sales, and ten million by the end of 2008. In his piece, Frommer suggests Apple will only be able to sell 5.8 million iPhones by the end of 2008, based on that fallacious "run rate." That would be just over half of Apple's ten million goal. However, he then says that Apple's immediate short term goal was an unimpressive low ball, no doubt because Apple reached it three weeks early.Apple's stated goals must be a greatly frustrating logical conundrum for Frommer, because even at a “run rate" of one million in a quarter, Apple could only ever hope to sell six million iPhones by the end of 2008, another five quarters later. No wonder he's faced with trying to say that the immediate goal was too low and the longer term one is too high! Frommer needs to stop trying to pound round facts into square holes just so they can be stacked up like bricks the way he would like them to be.Strike Three: The Market Bearing Price Myth.While Frommer and Moritz are enamored with the idea that iPhone prices could only be cut if sales were in crisis, a variety of obvious market realities don't support that simpleton idea. Between now and the end of 2008, Apple has just two holiday seasons. If it wants to dramatically exploit its historical potential for selling roughly three times as many gadgets during the winter season, it makes sense to trade off unit pricing for volume sales, even if it could perhaps sell fewer at a higher price and make more short term profits doing so.Such a strategy isn't unique. Microsoft and Sony currently lose money on their new game consoles in desperate bids to establish their gaming and HD video playing platforms. Even so, this year they both cut prices again to accelerate volume demand. Nintendo purposely aimed low to capture volume sales using a more attractive price point. Given high demand for the Wii and extremely constrained availability, Nintendo "should" seemingly raise its console price and profiteer. It hasn't. While prices are clearly linked to demand, it is a common fallacy to think that the "right price" is always the highest the market will bear. Jobs' 99 cent pricing in the iTunes store is clearly not the top price consumers will pay for downloads. Music labels are fuming that other licensees such as Verizon will collect $2.50 or more for portions of a song sold as a ringtone. Jobs wants media prices low to induce volume sales and attract buyers to the legitimate market for music and movie downloads. Labels and studios want "market pricing," in part so they can jack up the price of popular music to exploit consumers, and in part so they can exploit artists by threatening to release their work at lower tiered prices and signal to the market that their careers are over.[Universal vs Apple in the iTunes Store Contracts][Nintendo Wii vs Microsoft Xbox 360 and Sony PS3]This All Happened Before.Dial back the clock twenty years, and you'll discover that Steve Jobs also fought with Apple CEO John Sculley over the price of the original Macintosh. The desire to use an expensive but pioneering amount of RAM and a futuristic new processor had inflated the price of the Mac, but the design team was still able to deliver it at a fairly attractive price point of $1,995. Scully determined that the Mac would still sell at $2495, delivering high profits to fund splashy advertising. Nothing on the market was really similar to the Mac apart from Apple's $9,995 Lisa. VisiOn for the PC similarly cost nearly $10,000 and did far less. Sculley thought that the market would bear anything Apple might charge. Andy Hertzfeld recalled on Folklore.org that in October 1983, "Steve Jobs strode into the software area one evening, looking angry. 'You're not going to like this,' he told us, 'but Sculley is insisting that we charge $2495 for the Mac instead of $1995, and use the extra money for a bigger marketing budget. He figures that the early adopters will buy it no matter what the price. He also wants more of a cushion to protect Apple II sales. But don't worry, I'm not going to let him get away with it!'"Jobs fought Sculley over the price increase, but Sculley prevailed. Sure enough, Macs did sell well out of the gate to early adopters at the higher price, but sales then began to stall. While Jobs couldn't cut the price for the original Mac to induce wider adoption in the mid 80s, he could choose to cut the price of the iPhone early and use interest in the iPod Touch to ramp users toward the iPhone. That price cut will dramatically boost sales this winter, just as iPod price cuts and feature refreshes do every year.Apple will earn less profit on individual hardware sales of the iPhone, and may even earn slightly less money overall this quarter than it might have selling the iPhone at $599. However, a $399 iPhone will dramatically boost the company's sustainable subscriber revenues and devastatingly cut into stationary rivals like Palm and the Windows Mobile licensees, giving them little opportunity retool and strike back with copycat products. [Price Fight - Folklore.org][Office Wars 3 - How Microsoft Got Its Office Monopoly]Strike Four: The Myth of Unlimited Availability.Another problem with idea that iPhone sales were in crisis--and that a price cut is a conspiracy to hide the truth--is that Apple sold out of iPhones in many of its retail stores throughout the first three weeks on sale.Carl Howe of Blackfriar's Communications tracked iPhone availability every day through July, and then animated the results in a movie that depicts just how constrained iPhone inventories in Apple's retail stores were. So not only did Apple meet its 94 day goal 20 days early, but it did so despite having no or few iPhones to sell in many of its stores during the first 21 days. Price isn't just related to demand, but also to supply.That also demonstrates the fallacy of Scott Moritz' assertion that Apple secretly planned to sell a million iPhones in a day and a half, and was sorely disappointed after failing to do so. How could Apple have planned on selling a million units in one day when it didn't even have a million units on the shelves of its stores during the first month? Remember, Moritz wasn't saying Apple had a delivery problem in getting enough units to stores as Nintendo is experiencing with its constrained supplies of the Wii. Instead, he tried to suggest that interest in the iPhone was far below Apple's estimates, and buyers were leaving it on the shelf like Windows Vista. The result, he claimed, was that "rivals were rejoicing."The only real rejoicing by rivals was that Moritz was volunteering to repeat the talking points handed to him by Verizon shill Roger Entner of IAG Research. Just hours before Apple announced it had sold a million units, Moritz tried to get some traction out of the idea that Apple had dropped the price in desperation to find another half million or so customers over the next three weeks. Apple isn't the typical tech company being run by visionless bean counters. It it were, it would have continued selling $600 iPhones at least through the end of September and then announced that it had sold its million. Apple had to push out new iPods in early September and fit the iPhone into the price range because next month it will be rolling out Leopard and a series of new software updates. Apple feeds the press in small, consistent, and regular feedings so reporters know what to write. If Apple were a big stupid company such as, say HP, it would parade out a mix of dozens of consumer and business products all together in one big event, and nobody would ever hear about any of it. HP did.[Why a million iPhones in 74 days is better than you think- Blackfriars][HP's marketing this week: fashionable but ineffective - Blackfriars][Unraveling Anti-Apple Panic: the iPhone Launch Success] [More on Scott Moritz and the Jim Cramer Misinformation Engine]Strike Five: It's Too Late to Deny the iPhone.The most comical part of Frommers’ analysis is that he’s trying to stuff a cat back into a bag and explain that there was never really any cat, long after everyone in the room heard the purr and pet the thing. Sorry, but the windows of opportunity to doubt the iPhone have long since closed.Real Windows Enthusiasts were aware of the need to deny the iPhone well before its release. They all chimed in with reasons why the iPhone wouldn't work, wouldn't offer what consumers want, and wouldn't sell well, all hoping that their non-stop misinformation campaigns would act as a self-fulfilling prophesy. They failed miserably.John Dvorak began his smear campaign immediately, appearing on CNBC to say that the iPhone was "trending against what people are really liking in phones nowadays, which are those little keypads.�? He explained, “The BlackJack, the Samsung, the BlackBerry obviously pushes this kind of thing. The Palm, all of these. I guess some of these stocks went down on the Apple announcement, thinking that Apple could do no wrong. But I think Apple can do wrong, and I think this is it." Reader Jim Barrow sent in a link to a MarketWatch article from March, where Dvorak scribed a rambling diatribe entitled "Apple should pull the plug on the iPhone." He offered no factual basis for worrying that the iPhone might not work out apart from the offhanded comment that "there is no likelihood that Apple can be successful in a business this competitive," words which echoed Dvorak's 1984 observation that "the Macintosh uses an experimental pointing device called a 'mouse.' There is no evidence that people want to use these things."In April, Dvorak inflamed his 'pull the plug' rhetoric further in a TWiT podcast, where he reported to an audience of hundreds of thousands that the iPhone only delivered "40 minutes of talk time" and "the interface fouls up constantly.�? Dvorak said that his inside information on the iPhone came from a "guy at Cingular who’s testing the product," adding, "he’s telling me confidentially and I shouldn’t be telling anybody."[John Dvorak: How Wrong Can One Guy Be?][Readers Write: Don't Write About John Dvorak Anymore]It'll Be the Death of You.Dvorak was joined by Rob Enderle, who called the iPhone “damned�? and “not a very good phone�? at every opportunity in the months before its launch, despite not really knowing anything about it, or even ever offering any rational criticism. Instead, Enderle appealed to fantasy fears of sexual assault, murder, and the violent death of children, all of which he suggested might somehow be related to the iPhone. Unaware that a password protected iPhone--or even a unauthorized unit without a configured service plan--can still be used to make emergency phone calls, Enderle wrote about, "an emergency situation where, say, a woman was being raped and couldn’t call for help because she didn’t remember her iPhone password." As I understand, with a Windows Mobile phone, even if the unit crashed while trying to place the call, at least the victim could use it like a brick as a blunt weapon. Enderle also feared that being unable to take out the battery would somehow making recharging it impossible, resulting an a scenario where one might end up on “the wrong side of town�? with a dead iPhone and be murdered because of it. Being on the wrong side of town was apparently the source of most murders prior to the arrival of the cell phone, which somehow made it safe to be in bad neighborhoods. For those who unfazed by the prospect of one's own own grizzly death in relation to the iPhone, Enderle appealed to his readers to please think of the children, particularly the potential for their brutal decapitation in an iPhone-related collision. "If you are buying this phone for a child or another member of your family," Enderle warned, "please emphasize that entering data on this phone while driving is dangerous." In contrast, operating the slide out keyboards of an HTC brick phone, or using both hands to thumb type on a BlackBerry may or may not save your children as they drive off an embankment, but at least you'll know they didn't die at the hands of Apple's "damned" iPhone.[SCO, Linux, and Microsoft in the History of OS: 1970s][Mac OS X vs Linux: Third Party Software and Security]Pure Concentrated Evil with a Multitouch Screen.Brian Lam of Gizmodo published an impassioned plea to boycott the iPhone shortly before its launch, due to the fact that Cingular had purchased the AT&T name, a brand Gizmodo's writer correlated with "monopoly tactics" in the late 70s. Gizmodo hasn't ever called for the boycotting of Verizon Wireless, which is well known for its anti-consumer tactics and which shares just as much blood with the old AT&T as its Baby Bell sibling Cingular, nor has it ever urged the boycott Microsoft products due to "monopoly tactics." Gizmodo also failed to boycott any other GSM phones that are tied to AT&T.Gizmodo's Lam and Enderle then teamed up with Slate's David Sessions in an article purporting to expose Apple's rated battery life for the iPhone. Sessions complained about the attention the iPhone was getting, and tried to dismiss Apple's announcement of a two fold increase in battery life over what was originally advertised. Unbelievably, Sessions and friends could only explain away the iPhone's jump in talk time by crediting its glass screen, saying that "glass transmits light more efficiently than plastic." That and some witchcraft.However, all of these individuals sharply reduced their squirt rate of false information after the iPhone's successful launch. In day and a half, Apple sold 270,000 iPhones compared to the 500,000 Palm OS Treos, 1.03 million RIM BlackBerrys, and 1.51 million Windows Mobile phones that were sold worldwide in the first 90 days of 2007.Apple has since nearly matched highflying RIM in sales during July, despite being limited to a single carrier and only offered for sale in the US. At this point, denying the iPhone is like saying the Earth is flat. It might be fun to do at a Renaissance Faire, but pretending to seriously doubt reality is not a good career move unless you work for the Street--or perhaps Rupert Murdoch, as Dvorak does.[Secret iPhone Details Lost in a Sea of Hype and Hate][iPhone Sales vs Zune, Palm, RIM, Symbian, Windows Mobile]And Now: a Warning.Let it be known that anyone who publishes further misinformation or blows out similar inanity will risk being instantly awarded a Zoon on the spot. No complicated voting, no tedious application process. New Zoon nominees will be rubber stamped with the same effortless fast tracking as the ECMA declaring Microsoft technology as an international standard.In fact, I’m going to totally Zoon Dan Frommer and Scott Moritz right now, as well as John Dvorak, Rob Enderle, Brian Lam, David Sessions, and even Roger Entner. And John Sculley. And while I’m handing out an intellectual property construct that costs me nothing to distribute, I will also award Steve Jobs with a Zoon for the whole two month “just kidding�? iPhone pricing situation, although I might take half of it back if I get a $100 coupon that doesn’t force me to spend $500 to actually use it. So let that be a warning to you out there on the Tubes thinking about how to linkbait an article at the expense of the progress of technology. I have a rapid firing gun full of Zoons and I’m not shy about cranking them out. Be sure to post any nominees.What do you think? I really like to hear from readers. Comment in the Forum or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast! Submit to Reddit or Slashdot, or consider making a small donation supporting this site. Thanks!
The live music talk

As promised, I've put together a PDF transcript of the talk I did about the music industry. (click to get the PDF). I know it's not a video, but I'm afraid this is the best I can offer right now. I find that if you read it out loud and wave your arms a lot, you get the entire effect. Have fun. [Cory asked for it in plain text. Here you go]: On the future of the music business ...I keep writing books, and writing books about this industry and the industry has never invited me over, so thank you. So, I’m going to start by pointing out that for the period I’m talking about, which is my entire youth, not ill-spent enough, but my entire youth, the record business was perfect. It was a perfect industry. And I want to tell you why. Each one of these factors is important. Number one: An entire medium and entire section of the spectrum devoted to promoting the stuff you make...thats great right...for free! An entire thing built around helping you sell more stuff. Number two: An oligopoly. For those who didn’t grab an MBA [an oligopoly] is where there is a small number of people competing against each other. If you are a band hoping to break out in 1974, 1984, 1993, you didn’t have a lot of choices, and since you didn’t have a lot of choices guess who had a lot of power, a few companies.� And, those companies could demand certain things that they needed from the world. The third thing that made it perfect is it was a key part of out lives. Look up senior prom on the internet and all you’ll see are stupid pictures, ugly dresses, and people remembering the songs they were listening to. It was the soundtrack for generation after generation. The people in the shoe business don’t have this advantage. The people at almost every business aren’t featured on the prom pages, you guys are. The next thing, entire chains of retailers devoted to selling your product. In malls they’re paying the rent, not you, Sure they’re extracting shelf space allowances from you, but isn’t that really cool? Whole stores you don’t even have to own, devoted to promoting what you sell. Next thing, you have God on your side. (slide of “Clapton is god�?) Where was the last time you saw a piece of graffiti that said Starbucks is God. This is really good times. The next thing, one of my favorites, this piece of technology is so cool, it is really cheap to make. You can sell it for a fair amount of money. You can’t copy it, you wear it out and then you need another one. Its pretty, other people can see you own it, and they want one too. And once I don’t have it anymore and give it to you, I don’t have it anymore. This was a really cool thing, bad idea to get rid of this. (audience clapping) Alright, I’m on a roll here. The next thing, a magazine, not one magazine, several magazine devoted to promoting the product you sell. Again, no magazines about coffee, plenty of magazines about music. And, a whole cable TV channel about it. Lets see if I understand this. Everyone else has to buy TV commercials, you guys get your own channel...and you’re allowed to put scantily clad women on it. (laughter) This is amazing. I’m almost done-almost done with all the good news. It used to cost a wicked lot of money to make a record. (laughter) Thats good for you because that means the artists need you. Because you’re the ones who pay all the money it costs to make a record. And the last amazing piece of news is this guy. The voice of Scooby Doo (slide of Casey Kasem). Because, if you made it to the top 40, you made it! There is really something special about best seller lists. Something magic happens when you make the best seller list. What happens is people buy your stuff because other people are buying it. Think about that. You’re popular because you’re popular. And it’s an ever going cycle. And that is underlying a lot of what is going on. So! We can look at this and say, “this was good�?, and I’ll grant you, it was good. But that doesn’t mean it’s going to last forever. Just because all of those things lined up to make this the greatest business in history, thats legal, doesn’t mean that you should assume it’s all gonna stay. So, rather than me going through each one of those and bumming you out I’m just going to pick a couple of them and remind you of how the dynamic changed. Obviously, it’s really hard to make money doing that. Also, remember those guys who bought Beach Boys records? This is what they look like now. (slide of aging couple) (laughter) Now this is really important to understand because when the typical person is a teenager, they’re spending a lot of time looking for more. “What’s the new thing, what’s the next thing, what’s the new thing?�? But these guys don’t want that. They want to remember THEN, they don’t go looking for the new thing. And, it’s not your fault they were baby boomers, it’s not your fault the baby boomers are getting old. It’s just true. The next thing we talked about, this technology wasn’t as good as we hoped when we started. And it’s had a lot of side effects, the biggest one of course being it’s digital. And once you make it digital, all of a sudden the math changes. Because, it used to be if I gave you my record, I didn’t have my record anymore. And now, it’s if I give you my record, I still have my record. And that’s different. I’m not saying it’s better, I’m not saying it’s worse. I’m not saying it’s moral, or immoral, I’m just saying it’s different and we got to accept that. And, one of the side effects of that is that something has fundamentally shifted here. Now, I’m going to give you a little bit of a preview which is, I think the internet is the new radio. And I think we’re needing, in the record business, people in the record business are going to have to think about the fact that, that might be a really good thing, not a really bad thing. And, we’ll come back to that in a minute. The next idea is this idea that American Top 40, Casey, I don’t even know if he is still alive but its doesn’t matter so much anymore. And the reason it doesn’t matter is because of something called the long tail. I don’t know if you’ve read this book, you should go out and read it right now, you can read it in 45 minutes. And what Chris Anderson [author of The Long Tail] pointed out is this, if I look at Netflix, what I see is that Netflix rentals, half of them are products Blockbuster doesn’t even carry. If I look at Amazon sales, half of Amazon sales are products that are unavailable in any Barnes & Noble store. If I look at the iTunes music store, half of iTunes sales are titles that you could not buy if you went into any record store. What happens when you give people an infinite number of choices in any genre, polka, doesn’t matter, they spread out. And two things occur. One, they go down the tail and start finding what’s just right for them, and two, sales go up. And so what this means is that the very structure of “how do we force as much attention as we can to the top 40�? is actually the opposite of what leads to more consumption. And then the last one, you’ve seen it before, is this idea of suing the very people you’re trying to talk to is unfortunate. So, what’s next? And where do we go from here? I want to start by saying this really clearly. Music is not in trouble. I believe more people are listening to more music now than any time in the history of the world. Probably five times more than twenty years ago...that much! But, the music business is in trouble. And the reason the music business is in trouble is because remember all those pieces of good news?...every single one of them is not true anymore. Every. One. Now, if you want to, you can curse the fact the Solomon’s couldn’t figure out how to keep the tower going. You can curse the fact that it’s really easy to copy a CD. You can curse the fact that we don’t care about the American top 40. You can curse the fact that there isn’t top 40 radio that matters. What good is that going to do? Or, we could think about the fact that you have more momentum and more assets and more talented people than any body else. [And], at the very same time that people are listening to more music than ever before. Thats really cool. And, so when we think about transitions what we know is that timid trapeze artists are dead trapeze artists. And, that the only way you get from here to there is to just do it. Now, you might be wrong but the alternative is you WILL be wrong. There is no way to go from the perfect music business to the new music business with guaranteed ROI and written assurances-it doesn’t exist. So what will happen, I will guarantee this to you, is that 90% of the people in this industry will timidly start walking their way over and they will all fail. Thats why when you go to look up something online, you don’t go to RandomHouse.com, you go to Google.com. Thats why when you go to buy something on auction online you don’t do to Sothebys.com, you go to Ebay.com. Go down the list, what happened was AOL lost their nerve and didn’t start AOL Book where you could meet friends. They forgot. They were too busy trying to get people to buy a CD and start joining a membership internet service because they weren’t willing to do this. So it’s a little quixotic on my part but I’ve devoted my career to try and get people to do this. So, I think there is a new business here that might even be more perfect than the last one. It’s not the same business, the waves are shaped differently, and you need different skills but someone is going to win big in this business. So, what I want to do, and I’m excited-I’m talking too fast, we don’t have a lot of time here and thats fine with me, is tell you some of the tactics that I would use if I were in your shoes. But I don’t think I’m necessarily right. And if Berry Gordy had called me on the phone in 1964, I would have given him bad advice too. But, I hope what you’ll see in this is the thinking process about some of the realities of what really “is�? in the world because you guys are much better than I am at turning those realities into an actual business. So let me try. The first one is that people don’t listen to companies, they listen to people. And what is unique, almost entirely, compared to the movie business, the book business, whatever, is that you sell people. And, there is something magical about the connection between one person and another person. There is something magical about the way we treat celebrities.� And so part of the thing that is out there is that there is a large number of people who want to be led. There is a large number of people who want to connect. There is a large number of people who want to join a tribe. And you have the ability, from where you stand, to make some of those connections happen. What’s really neat is...my friend gets all excited because he needs to score some Bruce Springsteen tickets. Isn’t that interesting, right, because he’s using Greg to get to this tribe of people. That’s really valuable. He doesn’t need to have somebody get a copy of an album, he can just get that, you know, from Amazon for ten bucks, or for free. But the tickets, the connection, the insider, the handshake to one handshake-thats worth a lot! And so far you guys have been treating it like an interesting side effect. But it might be something right at the core of what you do every day. The next one is my biggest one, and what started me down this whole path which is, if I asked you for the name and address of your 50,000 best customers, could you give it to me? Do you have any clue? Then what happens every day is you guys go to a singles bar and you walk up to the first person you meet and propose marriage and if that person won’t marry you, you walk down the singles bar to every single person until someone says I do. Thats a stupid way to get married. A better way to get married is to go on a date. If it goes well, go on another date. Wait to tell them on the third before you tell them you’re out on parole. (laughter) Then you meet their parents, they me your parents, you get engage, you get married. Permission is the act of delivery. Anticipated, personal, and relevant messages to people who want to get them. I have every record Ricky Lee Jones has ever made including the boot legs that she sells. Rick Lee Jones should know who I am! (laughter) I have bought many of them (pause) well her agents, her people [should know who I am]. I’ve bought many of them directly from her site. I desperately want Ricky Lee to drop me a note telling me when she is going to be in town. I want her to ask me, “should I do a duets album with Willie Nelson, or should I do one with Bruce Springsteen?�?. I want to have these interactions. And I want her to say, “I’m making another bootleg, but not until I get 10,000 people to buy it as patrons before I make it�?. Because I’d sign up. I’d buy five if it would help, but she doesn’t know who I am. She doesn’t know who I am, she never talks to me. And then every once in a while her record label tries to yell at me, but I’m not listening because they’re yelling at me in a place where I’m not paying attention. And so we look at these phrases, “paying attention�?. That’s what you’ve wanted people to do all along. “Pay attention to this artist�?. Paying is a weird word isn’t it? You want me to pay you something-my attention. And if you’re wrong, I get nothing back. I had to listen to the Backstreet Boys...AHH! I want those three minutes back. So, it’s a weird relationship. The next thing is this idea that people care very much about who is sitting next to them at the concert. They care very much about the secret handshake. They care very much about the tribal identification. “Oh you like them, I like them�?. The Grateful Dead is an amazingly successful paradigm for many of the things I’m talking about. They didn’t make any money selling records compared to the way they made money doing everything else. Part of it was, you knew if you met someone at a dead concert, they had some things in common with you. The secret handshake, the clothes, whatever it was. And that was important and you were willing to pay money to be with those people. And after Jerry died it was very interesting. Because obviously there was thousands of hours to listen to but that’s not what the people missed. The people missed the place they could go to meet the people like them. At Facebook, it’s all about that. 64 million people who go there every day so they can meet people like them because [Facebook] is very good at dividing people up. The next thing is what I call the Seinfeld curve. The Seinfeld curve shows us Jerry’s life. If you like Jerry Seinfeld you can watch him on television, for free, in any city in the world two or three times a day. Or, you could pay $200 to go see him in Vegas. But there is no $4 option for Jerry Seinfeld. This is death. You can’t make any money in here. Because if you’re not scarce I’m not going to pay for it because I can get if for free. And one of the realities that the music industry is going to have to accept is this curve now exists for you. That for everybody under eighteen years old, it’s either free or it’s something I really want and I’m willing to pay for it. There is nothing in the center-it’s going away really fast. The next one is back to this long tail model. The magazine business imploded a long time ago. Saturday Evening Post, Time Magazine, they’re all irrelevant. But you can make a fortune with Playstation magazines, PC gaming [magazines], Game Informer, because there are silos of people who care a great deal. And if you know who those people are, if you have permission to talk to them, ready for this, if you stop looking for listeners for your music, and start looking for music for your listeners instead, the economics of your business totally changes. Magazines make 10x return on equity of books, you know why? Because magazines have subscribers and books don’t. So every time a book comes out they gotta run around looking for someone to buy it. Where as the magazine people just look for the next author to write the next article in the next magazine. The next idea is this idea of liking. There is a lot of music I like. There is not so much music I love. They didn’t call the show, “I Like Lucy�?, they called it “I Love Lucy�?. And the reason is you only talk about stuff you love, you only spread stuff you love. You find a band you really love, you’re forcing the CD on other people, “you gotta hear this!�?. We gotta stop making music people like. There is an infinite amount of music people like. No one will ever go out of the way to hear, to pay for, music they like. And the last one is back to this tribal thing. It’s really important to people to feel like they are part of that tribe, to feel that adrenaline. We are willing to pay money, we’re willing to go through huge hoops, trampled to death in Cincinnati if necessary, in order to be in the environment where we feel that’s going on. So if I put all this together I’m going to come up with what I call the Merchant Solution. It has nothing to do with stores, it has to do with Natalie Merchant. (laughter) So, Natalie Merchant shows up in the New York Times last week saying not only do I not have a record label, I’m not going to make records anymore because I just figure out how to do it. And that is the biggest opportunity times 10,000 because Natalie doesn’t want to be in business, Natalie wants to make records. Thirty years ago Natalie couldn’t put together the scratch to record an album because she couldn’t afford a recording studio. Thats what you guys did for her. She couldn’t come up with the time and energy to go out to California to sell and pay for shelf space at Tower, thats what you guys did for her. The point is, now she needs somebody to say “let us take care of your tribe�?. Let us figure out the business model that says you get to do what you’re great at, write songs, perform them, find people who love you, not like you, and they are A LOT in the case of Natalie Merchant, and we will figure out not how to exploit that, not how to write a contract that you’re going to regret for the rest of your life, but to sit next to you and say guess what, there are all these people in the tribe [and] we need to figure out how to make stuff for them. And, because we have three other artists that are just like you, Cowboy Junkies, we can start mixing tribes together in appropriate ways that makes everybody happy. Because you [record label] could go to the Cowboy Junkies tribe and say Natalie Merchant is coming to town and they’ll all go. Because they love her and they love each other and they want to see each other again because they can’t wait a whole year till the [Cowboy] Junkies come back. So if the model that we loved about the record business in 1968 was A&R, taking care of artists, finding artists who people will love, and the model that we hated was brand management, I want to argue that the next model is tribal management. That the next model is to say, what you do for a living is manage a tribe...many tribes...silos of tribes. That your job is to make the people in that tribe delighted to know each other and trust you to go find music for them. And, in exchange, it could be way out on the long tail, no one wants to be on the long tail by themselves, the polka lovers like the polka lovers, they want to be together. But that you, maybe it is only one person, technology makes this really easy, your job is to curate for that tribe, like the curators upstairs [at the museum]. There is a museum of modern art tribe, you can see them here every Thursday. And if you can curate for them guess what the [musical] artists need...you! Guess what the tribe needs...you! You add an enormous amount of value by becoming a new kind of middleman. So let me go through, real quick, a bunch of tactics and we can come back to these after I’m done if you want. So, old world, new world. Old world: it mattered who you knew. You know Jan Wenner...thats a good thing. Now it doesn’t matter because there’s an infinite number of outlets-you can have your own channel. Number two: limited number of physical outlets, now there’s an infinite number of online outlets. An infinite number of places where I can find music. Number three: an emphasis on hits because you didn’t have a lot of channels, you had to own the ones you had. Now, it’s about niches. I write the number one marketing blog in the world. Who cares. Well not many people here care, but lucky for me that niche has a bunch of people in it who care. And so I enjoy my day writing that blog, I could never write a blog that appealed to everybody. I couldn’t write a Boing Boing blog or a blog about popular culture, but because I get to be the king of this little silo I get benefits out of it. Number [four]: you yelled at the consumer. You talked directly to the user. Now it’s about two things. One, consumers talking to each other and two, consumers talking to you. How easy is it for a fan to talk to you? Almost impossible because you’re not organized for that and because you didn’t see that there was a benefit. But if you’re in tribal management thats the number one best thing that could happen to you all day is that you get an email or a phone call. Alright? Back to the barrier between the consumer and the permeability. The next one: your whole life was about interrupting people with messages they didn’t want to get. Fortunately radio made that socially acceptable. Unfortunately the government made it against the law for you to pay for that to occur but you still managed to pull it off. I could get in the car, turn on the radio and hear a song I wasn’t expecting and maybe I would like it. If I didn’t like it, it didn’t cost you anything anyway. Now it’s about permission. Now I get on the radio and in my car I have either my mp3s in there or I have satellite in there, I don’t hear anything i don’t want to hear. So, the model has totally changed. Next one: you used to have a factory. The factory is the recording studio, you know, the ability to get the number of things on the shelf space at Tower. You built everything around that factory. There’s no factory anymore! If you guys put up one ad on Craigslist you’d have records here tomorrow, done, finished, by email. Because everyone has the ability to make a record now. It used to take a long time. Someone would go to the studio, Boston, and we’d hear from them three or four years later. Now you can put a State of the Union speech out as a hip-hop record one day after he gives his speech and you could sell a bunch on iTunes. It used to be “how big a share of the market can we have?�? Now it’s about “how do we touch a tribe, just for a minute?�? As long as the tribe is happy, we’re happy. It used to be about what features, checklist stuff, now it’s “is there a story behind this artist, is there a story behind the person?�?. Advertising, promotion, shelf space, that used to be what you paid cash money for. Now you’re going to have to figure out how to innovate in the way you interact with people. And I think this is my last one: stability used to be “we’re big, you can trust us.�?. Now small overhead, we own the polka silo, we only need one person to take care of it, gives you the ability to have low risk when taking care of the long tail. Customer support isn’t as important as consumer support. How do you get people to help each other? So, if I had to show you one slide again, it would be this one. It would be, “I really want to hear from you�?.� Ricky Lee. Please! write to me, I want to be part of the tribe, I want you to talk. It’s not about, anymore, how many people can you reach. Super Bowl, doesn’t matter. it’s irrelevant. The internet is the new radio. What that means is this you’ve been arguing and hassling and yelling and pushing for 40 years to get more air time. Now you have infinite air time. That’s what the internet is for you. The internet is the ability to get any song you want in front of the people who want to hear it with huge reach and no barriers. What matters isn’t how many, it’s who. Who are you reaching, who are the thought leaders, who are the people who are going to tell other people? Who are the people who are out there trying to find the next big thing because those people are going to influence what the next trend is, and if you’re in the middle of that trend, because you’ve used this new medium to spread the ideas, you’re going to start paying for internet airtime soon because it’s worth it. It’s not that you need to say “no, no, no, I can’t let you hear this�? it’s “I want you to hear this�?. Because if you hear it you might join the tribe, and if you join the tribe then over time I’ll take care of you so well you’ll want to pay me. And then people will be passionate when they hear what you do for a living, they’re going to die to have you help them meet other people in the tribe.
Microsoft's Zune, Vista, and Windows Mobile 7 Strategy vs the iPhone

Daniel Eran Dilger What secret partner has Microsoft discovered to bail water from the deck of Zune and its Zune Marketplace music store in a last ditch attempt to take on Apple's iTunes, the iPod, and iPhone? Microsoft's own Windows Mobile, of course, with some help from Windows Vista! Who Else Will Help Zune? Certainly not Nokia, as one Zune fansite tried to suggest last week. Nokia has nothing to gain by promoting the Zune. A more credible sounding rumor, as long as we're inventing stuff, would be to instead suggest that it could be Sony Ericsson that is interested in putting the Zune software on its new phones. At least Sony has already demonstrated its complete failure at selling music on its own, and actually has a Windows Mobile phone in the works. The simpler reality is that Sony Ericsson may have no choice in the matter. Microsoft is clearly out to wed the Zune with Windows Mobile in a effort to get the two failures to prop each other up in its “I'm not dead yet!” fight against the iPhone. Microsoft is likely to make inclusion of its Zune Marketplace a mandatory feature that its Windows Mobile partners will have to swallow, just as it forced its PC licensees to bundle its Internet Explorer browser and later Windows Media Player, while prohibiting them from seeking their own bundling deals with other companies. Microsoft took quick steps to block Compaq's licensing of QuickTime, for example. Those deals were bad for HP, Compaq, Dell, and the other PC makers, bad for competition within the tech industry, and subsequently bad for consumers. However, they did enable Microsoft to use its powerful Windows monopoly position to push proprietary standards and or anti-interoperable technologies designed to expand its monopolized control, while making big money selling Windows in a market that lacked any alternatives. Will Nokia Rescue Microsoft’s Zune? Haha No. Apple in the Web Browser Wars: Netscape vs Internet Explorer Microsoft's Plot to Kill QuickTime A Lot Has Changed. This time around however, all Microsoft has to leverage is Windows Mobile, a struggling platform with little respect in the industry, now in a distant third place. Further, the technology Microsoft is trying to push is essentially its Windows Media DRM, which has already been swept up and trashed by Apple's iTunes, QuickTime, and the iPod. The dismal fate of Windows Media was sealed with the failure of PlaysForSure. The Zune's new, albeit incompatible, reincarnation of Windows Media DRM never stood any chance of making any headway. However, the most problematic part of Microsoft's strategy of pushing its Zune Marketplace store on its Windows Mobile partners is that music stores don't make money. Apple's iTunes Store is the biggest online music store on Earth, and does tremendous volumes of sales. Still, Apple reports minimal profits from the store. It recently warned its investors that it's now selling so much through iTunes that the low profit, high volume venture may have a negative impact on the company's overall profit margins. As problems go, that's certainly a nice one to have. Apple is not at all worried about turning a big profit with iTunes because it runs the store exclusively with the intent of ensuring new content for the iPod, iPhone, and Mac. That in turn sells its hardware. However, Microsoft doesn't have hardware sales to nurture. It has barely sold two million Zune units, many at fire sale prices (compared to 150 million iPods, 93 million of which have been sold since the Zune's release). It now faces impossible odds in tilting against the momentum of iTunes' rapidly spinning windmills, with no possible upside in terms of eventual music store profitability. There's simply no way that any amount of investment in the Zune Marketplace could deliver profits, because Microsoft is competing against Apple's non-profit motivation behind iTunes. Further, Windows Mobile is similarly a big loser with no potential because Microsoft has little ability to profitably license its mobile software. It's competition is the iPhone OS, which Apple develops for free to sell iPhone hardware (Microsoft does not sell its own phone hardware); RIM's mobile OS, which is also free for BlackBerry hardware; the Symbian OS, a partnership between hardware makers; and various mobile distributions of Linux, including Google's Android, all of which are also run as profitless ventures to support hardware sales (or in Google's case, service sales). The Great Google gPhone Myth Why Microsoft’s Zune is Still Failing 10 FAS: 7 - Apple’s Hardware and Dvorak’s Microsoft Branded PC Good Money After Bad. All that unpleasant reality hasn't phased Microsoft. Its executives haven't found a way to make money in consumer electronics yet, and the company's attempts just keep getting more and more expensive. Barron's recently featured the speculation of one Microsoft investor who hoped the company would spin off its hemorrhaging online services division as well as its profitless entertainment and devices unit, which includes the Zune, Xbox, and Windows Mobile. The investor calculated the value of Microsoft's other businesses (its high profit Office, Windows, and server divisions) and decided that the market wasn't assigning any value at all to Microsoft's consumer electronics and services products divisions. No wonder; they're nothing but a huge drain on Microsoft! Even so, the investor seemed to think there must be some value to obtain from selling off the black holes, citing the market value of the highly profitable Nintendo. The investor's real intent seemed to be finding a way to “discourage the company from overinvesting in the business.” Microsoft's stock has only appreciated by 6.3% over the last decade. Apple has appreciated 1,822.6% in the same period. Microsoft is trying to develop new markets as Apple has, it's just failing to do so. Microsoft’s Outrageous Office Profits Strength in Bundles. Microsoft has always been interested in promoting its products by using strong ones to prop up weak ones. From the start, it bound its strong Mac apps to the rather weak Windows offering to invent the PC platform, and has since tied Word and Excel to a suite of otherwise fair to marginal apps under the Office banner. Once Windows became established, the company tied in an unfinished, third-rate web browser and was able to rapidly build it into a strong competitor through market inertia. On the server side, Microsoft similarly ties in tragic products into package deals that often (but not always) enable the weak bits to gain some traction. So Microsoft is again working to stitch together its various properties to support each other, but now most all of its recent products are in flames and desperately need reinforcement. There's only so much one failure can do to support another. Even worse, Microsoft's historic strengths are no longer working. The Windows monopoly was supposed to brace up Windows Media Players, Windows Media Center, Windows Mobile, Windows Live Search, Windows Live Soapbox, and a series of other cobranded products that haven't gone anywhere. Office Wars 3 - How Microsoft Got Its Office Monopoly Office Wars 4 - Microsoft’s Assault on Lotus and IBM Why Does Microsoft Really Want Yahoo? Certifiable Failure. Windows itself is now in the throes of crisis, as the failed launch of Vista nearly two years ago has signaled the undoing of Microsoft's ability to rely on its desktop monopoly to advance failures into strength. Is Vista going to put out the Zune's flames by beating with its own flame-engulfed wings? That's part of Microsoft's current strategy, which included rebranding PlaysForSure as 'Certified for Windows Vista.' The Zune is also Certified for Windows Vista, despite not being compatible with the Certified for Windows Vista PlaysForSure. Confused? You needn't be for long, as the remnants of Microsoft's one-time strategy for creating an 'ecosystem of hardware, service, and software partners' to provide choice and freedom in the music industry is pretty much dead now. All of Microsoft's significant PlaysForSure store partners, including AOL MusicNow, MTV URGE, Musicmatch Jukebox, Wal-Mart Music, Yahoo Music, and Microsoft's own MSN Music have now unplugged their PlaysForSure stores, ironically making the brand among the least accurate names for a service ever. The remaining stores making use of PlaysForSure music, principally Rhapsody and Napster, are now on death's door. PlaysForSure video stores such as CinemaNow, which once worked with Microsoft's PlaysForSure-certified Portable Media Players no longer do. Even Amazon's UnBox service, which is supposed to sync with some devices that are PlaysForSure-certified, has not bothered to get certified under Microsoft's program. Incidentally, the failure of Yahoo Music and Microsoft's MSN Music (and the company's outrageous plan to simply unplug its customers from DRM authentication) caused CNET to wonder if Apple might be next in line to make users' music purchases unplayable, echoing the poorly conceived idea that Microsoft's Vista failure, its mobile platform incompetence, and desktop viral malware security crisis all somehow also predict a similar certain doom for Apple at some point in the future. For some reason, CNET saw no connection between the failure of Yahoo and MSN (hint: PlaysForSure), and no reason to speculate about the future of other media stores facing actual failure and likely disbanding in the near future, including Rhapsody, Napster, UnBox and Microsoft's own Zune. Nearly all of the recent DRM deactivation controversies, including Major League Baseball's, have been related to Microsoft's software, although Google decided to similarly to dump users of its paid video when it pulled the plug on Google Video last fall. Rise of the iTunes Killers Myth Forrester Research: Epic Terror of iTunes and Apple TV But Wait, What About This Ecosystem Failure Sounds Familiar? The complete failure of Microsoft's PlaysForSure hardware and software licensing program paints a damning prophetic picture foreshadowing the fate of Windows Mobile. Pundits often dance around this fact by spewing Microsoft's talking points: Window Mobile has lined up scores of hardware partners! Windows Mobile has lots of software partners! Choice is good! Oh wait, that's the same stuff they said about PlaysForSure in explaining why the iPod couldn't stand a chance once Microsoft could deliver its Windows Media Player reference designs and the Windows Media DRM that would enable PlaysForSure stores to open their doors. The only real difference between PlaysForSure and Windows Mobile is that the former was expected to prove that the Windows licensing model would work well among mobile devices, while the latter has already proven for some time now that it can't. Windows Mobile has been a snowball of failure ever since it launched a half decade ago with clumsy-looking phones running buggy, poorly architected software with abysmal battery life that makes the iPhone 3G look exceptional in comparison. Windows Mobile simply shares too much in common with the PlaysForSure failure to escape the event horizon if its blackhole. Pairing software from one vendor to hardware from another is problematic in the PC market, but completely untenable among highly integrated mobile devices. Microsoft tried to blame PlaysForSure incompatibilities on its music store and hardware partners, but the real problem was the model. Microsoft's own software problems didn't help either of course. The issue on Windows Mobile is even more significant because having functional mobile phone service is far more critical than being passively entertained by an MP3 player. Unchecked diversity among the devices of a platform is a bug, not a feature. The mantra of choice and freedom, hailed among Windows enthusiasts and homebrew hackers alike, makes for a great mission statement but in reality delivers products that just don't work. It's great to be able to compile your own servers from free and open source software, but most consumers don't want the accountability that comes along with that freedom when trying to dial 911 from their phone. For that matter they don't even want to troubleshoot the installation of a firmware update, or deal with why software designed for a tall screen looks awful on a square screen. With an integrated product like the iPhone, they can complain to Apple for a fix. With Windows Mobile, you get passed around by Microsoft from the mobile operator to the hardware maker to the third party software developer. Everyone is responsible but nobody is accountable. The Spectacular Failure of WinCE and Windows Mobile Count the Flames of Windows Mobile. And so, in terms of failing platforms, Windows Mobile is closer to PlaysForSure on the flames meter than it is to the only smoldering Vista, which is a moderate success by comparison. If attaching the Zune, Microsoft's phoenix on fire, to Vista's train wreck didn't have any impact on the relative salvageability of either, what will Windows Mobile 7 do for Zune 3 a year and a few months from now in late 2009 at the earliest? That's Microsoft's current schedule, barring any customary delays. By then, Apple will have had the iPhone in international distribution for more than a year, the App Store will be a year and a half old, and the WiFi iTunes Store will be more than two years old. What in Windows Mobile 7 will make a difference for smartphone buyers? According to Microsoft: copycat touch controls hobbled by an interface trying to look like Vista (below, and yes they did spell Internet Explorer wrong, as well as putting a space in ActiveSync), and no doubt a major new push to force Zune Marketplace media sales down the throats of Windows Mobile users in imitation of Apple. Microsoft is no Apple. The problem of course, is that the market for Windows Mobile phones is almost exclusively among corporate IT users, who don't give a rats ass about downloading music from the Zune store. So there's really little potential for cross pollination between Windows Mobile and the Zune. In contrast, Apple originally marketed the iPod and iPhone to consumers, who do buy up music to the tune of billions of tracks every year. Apple now has success to build upon, and has targeted its year-old iPhone platform toward the enterprise, with development tools, a software deployment infrastructure, and management utilities that in most cases meet or exceed what Microsoft has delivered over past decade on WinCE and Windows Mobile. On top of that, the iPhone platform has a far superior, standards-based web browser, development frameworks recognized to be easier to use than Microsoft's mobile .NET, and a core OS that is simply more stable, not to mention a user interface that's designed to look good and be simple to use rather than to match the flashy branding of a failed desktop OS. WWDC 2007: Kevin Hoffman Presents .Net vs. Cocoa The Other Problem: Windows Mobile is Going Down. Anyone banking on Microsoft's promises to deliver Windows Mobile 7 on time by the end of 2009 should also consider the company's track record in delivering Windows Mobile updates. The company initially intended to get Windows Mobile 5 out next to Longhorn [Vista] in mid to late 2004. Windows Mobile 5 was actually released in May 2005, and Vista finally popped out “officially” at the end of 2006, although one couldn't actually buy it until it was relaunched to consumers in early 2007. Even after Microsoft “released” its subsequent Windows Mobile 6 nearly a year later (based upon the same underlying WinCE 5), it took six months or more for many of Microsoft's partners to approve it and set up distribution so that users could actually get the software on their phones. In contrast, Apple releases regular iPhone updates every month or two that are always available to users immediately after their release, directly from Apple. Microsoft doesn't exactly have years of leisure at its disposal. Windows Mobile has already been hit hard by competition from the iPhone and from other rivals, including RIM in the enterprise market and Symbian internationally. That competition has resulted in Microsoft's mobile market share slipping year over year. This year, Microsoft failed to meet its frequently repeated goal of selling “more than 20 million units” through all of its various hardware partners, and instead only sold 18 million. Microsoft senior vice president Andy Lees blew off the missed goal as a “rounding error.” He cited numbers from IDC that indicated Windows Mobile had grown from 11% to just under 13% of the worldwide market for smartphones, growing faster than the overall market, and that unit sales of Windows Mobile phones have both outpaced sales of BlackBerry phones and outsold the iPhone by a factor of two. Windows Mobile misses target Oops, Microsoft Fibbed a Bit There. Canalys reports that Microsoft actually started out with a 23% share of the smartphone market in Q1 2004, which fell to 18% in Q1 2005, then down to 12% in Q1 2006, where it remained in its Q4 2007 figures. Apple ranked at 7% worldwide in Q4 2007, but that was based on sales in one market, of one model, and on one mobile provider, after only being on the market for six months. Smart mobile device shipments hit 118 million in 2007, up 53% on 2006 (Canalys press release: r2008021) If the best Microsoft can do is to claim victory for selling twice as many phones as Apple, worldwide across all of its partners despite having a many years long head start and that great ecosystem of manufacturers behind it, then it should probably just not say anything. Incidentally, with the release of the iPhone 3G, AT&T is reporting having doubled its sales volumes, not to mention all of the other new markets the iPhone 3G is now being sold in worldwide, at half the price of the original model. Within just the US smartphone market, which was Apple's only market last year and is also Microsoft's strongest market for Windows Mobile, the iPhone grabbed a 27% share in its debut third quarter of 2007, and maintained a 28% share in the fourth quarter 2007, behind RIM with 41%, but ahead of Palm at 9%. Adding up all of the Windows Mobile manufacturers selling in the US, Microsoft could only claim to have its software on 21% of the phones sold, a significant step behind Apple. Canalys, Symbian: Apple iPhone Already Leads Windows Mobile in US Market Share, Q3 2007 iPhone Grabs 27% of US Smartphone Market Also, all of these figures bundle in all of the “convergence” Pocket PC mobile devices sold by Microsoft's partners, but none of the iPod touch units Apple sells, which are likely to be in well in excess of its iPhone sales. So Apple's mobile WiFi platform is actually far larger and growing much faster than market statistics companies report under their smartphone category. Anyone hoping that Windows Mobile 7 to going to reverse that trend when it arrives over a year from now is seriously delusional. Did you like this article? Let me know. Comment here, in the Forum, or email me with your ideas. Like reading RoughlyDrafted? 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★ BlackBerry vs. iPhone

1: Wherein Neither ‘RIM’ Nor ‘BlackBerry’ Are Even Mentioned, but Rather the Stage Is Set for Showing Why They Might Be Seriously Screwed Along the lines of can’t-really-be-answered-but-gosh-they’re-fun-to-ponder questions like, say, “Who’d win in a fight, Batman or Spider-Man?” or “Star Destroyer vs. U.S.S. Enterprise?”,1 here’s one regarding the iPhone: What historical Mac is a current iPhone most analogous to, spec-wise? I.e, complete this sentence: “An iPhone is like having a tiny ____ in your pocket?” Now of course the comparison can’t be precise. Different software, different use cases, different purposes. But there’s no denying that an iPhone is a computer. And unless you’re really young, it’s faster — a lot faster — than the computers you owned not so long ago. So, seriously, stop here for a moment and think about it. My first answer, pulled simply from recollection of how fast machines felt to use, was the original iMac. But that machine — announced 10 years ago this week — had a 233 MHz G3 and, by default, a paltry 32 MB of RAM. Apple has never officially released the CPU specs of the iPhone, but Craig Hockenberry poked around with undocumented system APIs which indicated the iPhone’s CPU runs at 400 MHz with a bus speed of 100 MHz, and that there’s 128 MB of RAM. As we all recall from the PowerPC era, MHz is not a precise metric for comparing the performance of CPUs across different architectures; I wouldn’t be surprised in the least to find out that a 400 MHz PowerPC G3 is a faster chip than the 400 MHz ARMwhatever that’s in the iPhone, if only because of the power constraints. But, still, it’s something. So, my answer to the question: the original “Pismo” G3 PowerBook. The numbers match up pretty closely: 400 MHz CPU, 100 MHz bus speed, 64 MB of RAM. (The higher-end Pismo had a 500 MHz CPU and 128 MB of RAM.) Even storage sizes are similar: hard drive options for the Pismo were 6, 12, or 18 GB. Another possible answer: the original blue-and-white Power Mac G3 — again, 400 MHz CPU, 100 MHz bus speed, 64-128 MB of RAM, and 6-12 GB hard drives. Think about that — in just nine years, the specs that then described Apple’s top-of-the-line desktop computer now describe their phone. One thing that makes this comparison hard is that there’s not much software in common. You can’t use most of the real-world tasks commonly used for ballpark benchmarking, like, say, Photoshop image processing or ripping MP3s from AIFFs, because the iPhone doesn’t do them. But there is one processor intensive task we can compare: web page rendering. In the early days of the web, it took a while for even moderately large web pages to render in a browser, even when you were loading them from HTML files right on your hard drive. If you were to plop yourself down in front of one of these vintage 1999-2000 Macs for an afternoon of web browsing, even with a decent Ethernet connection to the Internet you’d find the experience pretty damn slow by current standards. For all the incessant chatter about the demand for and purported certainty of 3G wireless networking in the next generation of iPhone hardware, the truth is that current iPhones are held back, web-surfing-wise, by more than just the speed of EDGE (which admittedly, is indeed pretty slow). Recall this video pitting a 3G Nokia E61i against an iPhone on EDGE — total rendering time was more or less the same, and in a few cases, the iPhone came out ahead. You can see that browsing speed — which is what matters — depends on more than just networking speed simply by comparing how long it takes to render a web page on the iPhone using Wi-Fi: a lot longer than it takes to load the same page in using Safari on a Mac. For example, it takes about two or three seconds for Safari to load the Daring Fireball home page on my new MacBook Pro. Using the same Wi-Fi network, it takes my iPhone about 15 seconds. (Using EDGE, it takes about 60 seconds to completely load, although you can start reading much sooner than that.) Point being that even if 3G wireless networking were as fast as Wi-Fi — which it’s not — browsing on an iPhone would still be pretty slow compared to browsing on a modern desktop or laptop. If you frequently use Wi-Fi on your iPhone, a faster processor in the next-generation hardware would make a bigger difference to the overall experience than faster phone-carrier networking. And so here’s the point I’m driving at. If a 2007 iPhone is loosely equivalent in terms of computing power to a 2000 PowerBook or 1999 Power Mac, that puts the spread at around seven or eight years. Extrapolate forward, and it’s therefore not at all unreasonable to think that a 2014 iPhone will pack the computing power of today’s MacBook Pro. Or, nearer term, that an iPhone introduced two years from now might pack the punch of a 2003 Aluminum PowerBook G4 — quite a difference from the Pismo. Even if your estimate of the iPhone’s equivalent-horsepower Mac is further back in time than mine, there’s no denying that Moore’s Law applies to handhelds, too. Eventually there will be a computer that fits in your pocket that is more powerful than today’s Mac Pros. But the path from here to there is riddled with difficult engineering problems — heat dissipation, battery life, and OS integration chief among them. There is marketing. There most certainly is design. But at the core of this market — by which I mean the market for handheld multitasking web-surfing networked-everywhere “phones” which are really computers — is engineering. Apple is the best handheld computer engineering company in the world today, hands down. They’re also the best handheld computer user experience design company. And they’re not sharing. 2: Why RIM Is Screwed When the iPhone was announced, I saw Apple as staking out ground far afield from the territory RIM occupies with the BlackBerry. Last year, I didn’t see Apple implementing Exchange support in the iPhone OS, and clearly that was, well, completely wrong. The “enterprise” features Apple has announced for the imminent 2.0 release of the iPhone OS — remote wipe, push email, automatic calendar and contact synching — pretty much encompass every single feature that’s been held up as a reason the iPhone wouldn’t sell to enterprise users. It remains to be seen how well these new iPhone features will actually work, but if the answer is “as well as promised”, and if the iPhone’s Mail app is improved in ways targeting people who receive a high number of messages, it’s hard to see a single software advantage in the BlackBerry’s favor. Which leaves hardware, which leaves the keyboard. Two Sundays ago, the New York Times ran a lengthy business-section piece by Brad Stone, titled “BlackBerry’s Quest: Fend Off the iPhone”. Regarding the upcoming BlackBerry 9000, the focus turned to the keyboard: Photographs of the device, leaked to gadget news sites, also indicate that the new BlackBerry will have elegant curves suggestive of the iPhone. It will also have a physical keyboard like previous R.I.M. devices, as opposed to the glass touch screen found on the iPhone. There’s a reason that R.I.M. is averse to the iPhone’s glass pad. “I couldn’t type on it and I still can’t type on it, and a lot of my friends can’t type on it,�? says Mike Lazaridis, R.I.M.’s co-chief executive and technological visionary. “It’s hard to type on a piece of glass.�? Mr. Lazaridis thinks that e-mail-dependent BlackBerry owners demand the reliability and tactile feedback of a keyboard. But, despite his critique of the iPhone, he does not dismiss the possibility that R.I.M. may itself one day sell a touch-screen phone, aimed specifically at consumers without the e-mail demands of BlackBerry’s core users. Translation: “We’ll emphasize the physical keyboard as a differentiating factor as long as it seems to work, at which point we’ll try a touch-screen keyboard too.” The only other angle RIM seems to be hanging its hat on is “security”: RIM is also betting on security, which hinges on the fact that its handsets and e-mail systems are relatively impervious to hackers. Mr. Lazaridis predicts that corporations will not give iPhones to their workers because they have already proved vulnerable to hackers eager to pry iPhones off AT&T’s system and make them work on other wireless networks. “It’s not that simple for an I.T. manager to give up security,�? he said. The idea that iPhone carrier unlocking is a “security problem” is a conflation between what an attacker can do to your phone, against your will and/or unbeknownst to you, versus what a phone’s owner can do to their own phone. It’s not like these “hackers” are attacking happy AT&T-subscribed iPhone owners and switching them over to Sprint against their will. To understand why Apple is making a concerted effort to appeal to BlackBerry users, consider an analogy to the board game Risk. RIM has a large army (read: users), but they’re all massed together in one spot on the map. They care about email, they care about exactly the sort of enterprise features Apple has announced for the iPhone, and they are known to be willing to pay several hundred dollars for a handset. A lucrative target that can be attacked all at once. And the BlackBerry is weakest where the iPhone is strongest: web browsing, music, and video. Compare and contrast with, say, a software platform like Windows Mobile, or a hardware maker like Nokia — their users are spread across a wide variety of phones and platforms. It was far easier to turn the iPhone into something almost every BlackBerry customer might at least consider than it would have been to make a lineup of iPhones that appeal to every Nokia customer. RIM doesn’t really have any lock-in other than user habits. The BlackBerry gimmick is that it works with the email system your company bought from Microsoft. Replace a BlackBerry with an iPhone (2.0) and the messages, contacts, and calendar events that sync over the network will be the same ones on the BlackBerry you just tossed into a desk drawer. In broad terms, BlackBerrys are optimized first for email; the iPhone for the web. What’s more important, an email client or a web browser? For most people, and perhaps even most current BlackBerry users, the answer is clearly the web. Many people in fact read their email entirely through the web. Unless you’re Richard Stallman, you probably don’t read the web through your email client. The iPhone would be a credible, useful device with just two apps: Phone and Safari. But it doesn’t just have those two apps. It has a slew, and they’re all better on the iPhone than the BlackBerry and the difference with regard to anything other than email is only going to get more stark once the iTunes App Store opens its doors. If nothing else, consider games, games, and games. As I wrote when the iPhone’s upcoming enterprise features were announced, the iPhone can do more BlackBerry-ish things than the BlackBerry can do iPhone-ish things. Apple doesn’t wait for someone else to knock one of their hit products off its throne or slowly run it into the ground (cf. the Motorola Razr) — they do it themselves. For six years pundits have been declaring that competitors would “soon” catch up to the iPod, but the iPod has never been a static target — over the same six years Apple has released significant new iPods every year. There are no signs that RIM has the engineering chops on either side of the ball — hardware or software — to compete with where the iPhone is now, let alone where it’s going to be. We know that Apple has an OS that can scale to take advantage of faster (and multi-core) processors, because OS X is doing that already. If a two-years-away 2010 iPhone might be like having a 2003 PowerBook G4 in your pocket, for RIM’s sake a 2010 BlackBerry had better be something more than a BlackBerry with a brighter screen. Correct answers: Batman, Star Destroyer.�↩
iTunes Wi-Fi Music Store for iPhone

Filed under: iTS, iPhoneOur weeks of obsessively checking for iPhone updates were rewarded today with software version 1.1.1. There are several changes, like a new Calculator icon (it now matches that of the iPod touch) and additional text message alert sounds.The big news for iPhone users, however (those that survived the update, that is), is the iTunes Wi-Fi Music Store. Here are my impressions after spending a few minutes with it.Look and FeelUpon first launch, you're brought to the main screen. I had an excellent Wi-Fi connection and the store came up very quickly. Across the top are three buttons: "New Releases," "What's Hot" and "Genres." Below that are two banner ads and a scroll-able list of top releases. Flipping through the list was snappy, though it did take a second or two to draw album art towards the bottom of the list.At the very bottom of the screen are four icons: "Featured," "Top Tens," "Search" and "Downloads."It feels much snappier than I expected. The album art is nice and big and everything is quite legible.Purchasing MusicI touched The Shepard's Dog by Iron & Wine (I intended to buy it anyway) and got a listing of the album's tracks. Tapping any title launches its 30 second preview almost immediately, just as tapping the price tag reveals the "Buy now" button. I bought the album, and was prompted for my iTunes Store password. The selected music seems to "jump" down into the "Downloads" icon, and a small, red indicator slowly flashes red, indicating the number of tracks remaining.Again I was amazed at how quickly it downloaded: 3MB and 4MB songs were taking 3 and 4 seconds.Once the download was complete, a button for the newly-created "Purchased" playlist appeared in the upper right hand corner. Clicking it quit iTunes and launched the iPod software, where my music was ready to play. The whole process was fast and dead simple. Apple obviously contemplated (and nailed) every last detail.Synchronizing with iTunesAgain, this was laughably easy. With my iPhone connected to my Mac, I launched iTunes and started a sync. iTunes saw and imported the new music. It also created a new, "Purchased on Dave's iPhone" playlist. Other Features Live search: iTunes begins searching as soon as you start typing, which is pretty cool. Top Tens: Quickly jump to the top ten songs across genres, or view the store's over all top ten downloads. Download Extras: If an album contains extras, like a digital booklet or a video, it's described beneath the list of album tracks. This is a very nice piece of software: Speedy, simple and similar enough to the "full"version of the iTunes Store that there's no learning curve at all. Feel free to share your own experiences in the comments.Read�|�Permalink�|�Email this�|�Comments
Forbes Prints Insanely Self Serving Attack on iTunes by MediaNet CEO Alan McGlade

Daniel Eran DilgerForbes, best known to many readers as the soapbox Daniel Lyons used to promote--perhaps unwittingly--a pro-Microsoft agenda backing SCO and vilifying Linux and open source, has taken another opportunity to present outrageously false information serving the interests of Microsoft: an impassioned outcry of rage over the success of iTunes.This time, rather than using a journalist Forbes gave its bullhorn to Alan McGlade, the CEO of MediaNet Digital. Although not identified as such by Forbes, his company supplies the music library behind MTV's Urge, Yahoo, FYE, and the Zune Marketplace, all of which are Microsoft’s partner Windows Media DRM stores. I wonder if he has anything bad to say about Apple and its music business?[Daniel Lyons: Fake Steve Jobs and the SCO Shill Who Hated Linux]Tear Down This Wall!In a rapturous plea to abandon Apple, McGlade complained that "In a flat, digital world, walls don't need to be torn down. Thanks to online file sharing and social networking, people are able to go over, under and through walls." No doubt the company stocking Microsoft's Windows Media stores would like nothing more than an open playing field where everyone could compete. Oh wait, companies already can. Stores like eMusic profitably sell MP3s online next to iTunes, and Apple has made no efforts to erect barriers to sales of open music on the iPod. Apple does stop DRM providers from using the iPod, and this incenses DRM providers like Real and Microsoft.The other problem for companies selling egregious DRM is that customers hate their business models. People don't want to pay to rent music, or they would be. They have had lots of opportunity to do so.McGlade is bitter to have partnered with Microsoft--the most deviously anticompetitive and monopolistic company in technology and the biggest proponent of the most restrictive types of DRM--only to lose out in the music business to more permissive and liberal stores like Apple's iTunes and the popular iPod, which will not support anti-consumer Windows Media DRM at all.[Of Apple And Oranges - Forbes]McGlade Cries Over His Own DRM Failure. McGlade weeps out a portrait of his own failure, writing, "How is it then that one of the world's most innovative technology companies has managed to erect its own exclusive, and so far impregnable, kingdom? A relatively small percentage of world music sales occur through digital downloads. But, those that do, happen mainly through iTunes, Apple's online music store. "It's hard to remember any one company establishing such total control over a segment of our culture as Apple has on digital music. The iPod accounts for 70% of personal music player sales, while iTunes is estimated to direct more than three-quarters of all music downloads."Yes it is easy to forget about Microsoft when you are bound to the company's teat. With some objective perspective, perhaps even McGlade could recognize that he bought into a deal that was 'guaranteed to win' because of Microsoft's 97% monopoly hold over computers worldwide. But he lost, and miserably so, as he points out. Now he wants the market to pay him without having to compete. McGlade expects the world to ‘correct’ his defeat because he is simply owned profits for offering DRM in partnership with Microsoft. Sorry McGlade, you have to earn your money.[Microsoft’s Outrageous Office Profits]Double Locked Down!"Apple has maximized its dominance of the digital music market with a double lockdown." McGlade says, but leaves it somewhat unclear what either of those locks are. "The combined clout of iPod and iTunes is mutually reinforcing and gives Apple enormous marketing leverage." Is the iPod at all locked to iTunes music? No, in fact we know, as McGlade earlier pointed out, that downloads only amount to a small percentage of music on all music players, including iPods. Most music comes from users’ own CDs.McGlades' comment is particularly saturated in hypocrisy because the stores he represents--as a competitor to iTunes--are mostly geared toward subscription plans, and therefore lock users to to a specific store and lock them to a monthly fee. That's the real double lock down, but McGlade doesn't want his readers to think about that. He just wants their money.[BBC Prints Irresponsible Rubbish on Apple]Remember: Apple is the New Microsoft.McGlade then describes how Apple is defining popular music, and that it has the power to promote music on the front page of iTunes. He warns that "as digital devices diversify [through the imminent adoption of Microsoft-partnered players]... music lovers will inevitably seek digital music from a multiplicity of sources [selling music from MediaNet]."This makes lots of sense! I know when I find a grocery store offering good deals on everything I need, I run to competitors to see if I can pay more to sign up for subscription memberships that will bill me whether or not I shop with them.McGlade then describes Apple as the Orwellian "Big Brother of the digital music scene." In case you didn’t get the memo that’s being passed around by every flack in the business of shilling, Apple is the New Microsoft, and so consumers should revile the company and flee to the safe harbor of Microsoft, which is now, logically, less of a Microsoft than Apple.Forbes’ Lisa DiCarlo paints ugly pictures of Apple at every opportunity, but really outdid herself with the 2005 headline “Is Apple The New Microsoft?�? which castigated Apple for its lawsuits against bloggers. In the same year, Daniel Lyons advised in Forbes’ “Attack of the Blogs�? that, “you can't stop bloggers from launching an allout attack on you or your business if that's what they decide to do--but you can defend yourself.�? So which is it Forbes?Since then, the idea that “Apple is the New Microsoft�? has been aped by such objective thinkers as Paul Thurrott of Windows Supersite, and supreme shill Mike Elgan, the former editor of PCWorld. How they can claim that Apple is bad for being like the company they have made excuses for over the last two decades is difficult to explain. Fortunately, they’re still wrong.[Microsoft Surface: the Fine Clothes of a Naked Empire][Paul Thurrott's Merciless Attack on Artie MacStrawman][Myth 4: The iTunes Monopoly Myth]Forbes' Fraud in Photos.We don’t expect much from Thurrott and Elgan. We might expect more from Forbes. However, in a move that erases any suggestion that Forbes is objective and honest in the information it publishes, McGlade and Forbes put together a slide show of stomach churning, false information that goes far past disingenuous and lands directly in a patch of flat out fraud.The first slide depicts a “DRM is Killing Music" t-shirt featuring an iPod. McGlade says "It's through proprietary DRM software that Apple enforces iTunes/iPod exclusivity." Except that that is a lie. The iPod doesn’t use DRM at all unless users chose to buy tracks online, which only a minority of users do.He then notes that things are changing, starting, he says, with Universal and WalMart. He also notes that "Apple, to its credit, has embraced this shift, offering DRM-free downloads on its site. However, every other retailer chose to offer-DRM free in the open MP3 format except for Apple."This is all very convincing except for the fact that we all know that Apple shocked the industry by announcing the first DRM free deal with EMI. Other groups slinked along later, offering a few MP3s only when browsing Windows-only sites as WalMart does. Apple sells its music in AAC format, which is as open as MP3, but more technically sophisticated and easier to license. McGlade is working hard to associate DRM with the iPod, but he’s withholding the truth to do so.The second slide of misinformation depicts the clunky failure of the Zune, along with a McGlade caption that notes "Serious competition [to the iPod] has emerged in the past year or so, and its impact is beginning to be felt." No it hasn't. The Zune is a joke and a major failure. Microsoft is losing billions in its consumer electronics efforts in order to establish a monopoly position in music with Windows Media, but is failing. McGlade is just sorry to be on the losing side, and is scrambling to tell us that up is down. [Ten More Myths of Zune]More Promotional Zune Fraud.McGlade dives deeper into the toilet to fish out a third slide, which depicts a man in a wireless cafe using a Titanium PowerBook, photoshopped to obscure its Apple logo and further tampered to include what appears to be fake Intel and Windows stickers. To what further fraud will Forbes stoop?Dear Forbes: your next assignment to is photoshop a VW Beetle to look like a generic car, and then use it in an article assailing Volkswagen for being too much like General Motors in the 1970s.But what does a doctored Apple laptop at a hotspot have to do with the music industry? "Samsung, Sandisk and Microsoft's Zune were the first to innovate with features like wireless, access to music subscription services, unprecedented battery life and larger screens,�? the caption announced. “Fast wireless puts the 'music anywhere' dream within reach.�?The Zune did include WiFi, but it was completely worthless for anything apart from draining the battery. Microsoft limited it solely for use as a way to send exploding commercials to other Zune users. It was Apple that delivered the first and only WiFi music store, delivering the supposed 'dream' of buying music anywhere. McGlade makes no mention of this because he makes no money on sales through iTunes.[iPod vs Zune: A Buyer's Guide]Enter the iPhone."While Apple has scored another hit with the iPhone, the company will posses only a tiny segment, about 1%, of the global cellphone market in the product's first year." McGlade wrote. He should have said, "1.5% of the market in its first month," but his version sounds better for rivals. Why would he need to lie about the iPhone in a music article? "By 2008, hundreds of millions of these phones will employ standard Microsoft software that will make them compatible with most download stores and subscription services." Because that "standard Microsoft software" would sell McGlade's MusicNet content, he has to desperately overreach to suggest that the future will suddenly change and consumers will somehow get excited about Microsoft's truly awful Windows Mobile products, despite their being a complete failure on the market even prior to the release of the iPhone. Microsoft only has a tiny scrap of the smartphone market, about 5%, despite representing a broad selection of phone makers for half a decade. Apple outsold every one of those models in its debut month, selling at a premium price. That adds up to a wide spectrum of flacks, shills, and desperate CEOs ready to bad mouth Apple for their own loss in supporting Microsoft.[Secret iPhone Details Lost in a Sea of Hype and Hate][Apple: iPhone Now Costs Less than Ballmer's Lame Motorola Q]Music Anywhere.The next slide describes diverse devices that can play digital content, and depicts a Pioneer car CD player, which can play MP3 CDs and the radio. That means it can play CDs burned with iTunes, including purchased tracks, but not subscription music or WMA DRM.It strangely makes no mention of AirPort Express or Apple TV and their ability to play iTunes content wirelessly to home stereos or TV, or Apple’s lead in iPod integration with car makers, or its deals with airlines to plug the iPod into in-flight audio and video playback systems. That would undermine the intent of the photos. Besides, Forbes just printed an article by Scott Woolley which pretended that Apple TV was a huge failure compared to the massive losses behind Tivo (tens of millions per year) and Microsoft (billions).As reader Timothy Bandy pointed out, “overall, TiVo-owned subscriptions totaled 1.71 million, up 136,000 on an annual basis compared to the year ago-period.“So if Apple sold 250,000 Apple TVs, it's already doubled the amount of new customers Tivo made last year; or to put it another way, they already have 1/7th of Tivos' customer base without hardly trying. And as you pointed out, I doubt they've lost several million bucks in the process.�?[Scott Woolley Attacks Apple TV in Forbes, Gets the Facts Wrong]Double Locked Down Subscription Services.Touting the double locked down rental music business McGlade represents, the next slide notes, "subscription services, which allow unlimited access to millions of music tracks for an average set monthly fee of $10 to $15, have been around for some time." Yes, and have failed miserably! "But with the advent of wireless-enabled players, phones and home devices, they are just now poised to deliver on an awesome promise: access to virtually all recorded music, anywhere, any time." How? Ubiquitous networking "may soon render the idea of exclusive music ownership obsolete." In other words, no CDs for you. You will rent what MusicNet sells you, and you'll like it at whatever price they set. You can rent access from any Microsoft/MusicNet store you chose, and play it on any Microsoft PlaysForSure or Zune player you pick, just not both, because they’re aren’t compatible with each other. Both are, however, double locked down.Music You Want.Speaking of which, McGlade reaches out embrace Latinos and Christian music buyers by advertising two specialty web stores that sell music from... well, you-know-who: MusicNet. For this shameless and desperate advertisement / hit piece masquerading as news, Forbes gets a Zoon, as does MusicNet and its shameless CEO, Alan McGlade. Good luck trying to sell it, they’re worthless! I crank them out like paper money.What do you think? I really like to hear from readers. Comment in the Forum or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast! Submit to Reddit or Slashdot, or consider making a small donation supporting this site. Thanks!
Apple's iTunes Ringtones and the Complex World of Copyright Law

Daniel Eran DilgerWhile I’m no huge fan of the “all singing, all dancing�? mobiles that announce every incoming call by belting out a section of a song--particularly since they tend to use songs that I don’t want stuck in my mind for the next hour--ringtones are extremely popular and a big money business, so they’re not going away anytime soon. The latest version of iTunes now allows users to select from a half million songs in the iTunes Store that can be “upgraded�? from a regular 99 cent track to a ringtone by paying another 99 cents to carve out a user-defined, 30 second clip as a ringtone that can be synced to the iPhone. Suddenly, everyone who was cool with Verizon Wireless charging $2.50 and up for individual ringtones came out of the woodwork to castigate Apple for selling ringtones as a 99 cent upgrade, and only for songs it sold within iTunes; by default, you can’t make a ringtone from songs ripped from your own CDs using iTunes. Of course, you actually can do this by changing the filetype of the song and assigning it a metadata tag, but Apple doesn’t tell you this, and doesn’t really want users to exploit this because it will send it back into negotiations with the labels again. [iPhone Ringtones - What Did iTunes 7.4.1 really do? - gryphondwb]The Ringtone Circus.Remember that Apple appeared poised to deliver a ringtone sync function in iTunes back in January, but then pulled the feature and later backed away further by adding new legalese to the iTunes terms of service that excluded downloads from being used as ringtones. Clearly, the record companies jumped on ringtones as a whole of stack of potential profits that could not be allowed to go without remuneration. Apple makes very little from sales of music in iTunes; the vast majority of revenues are funneled back to the record companies, which then devise how to avoid paying their talent and keep as much as they can.At stake are the complex copyright laws involving derivative works, performing rights, and reproduction rights. Apple’s iTunes breaks open a whole can of worms because it is changing the market for music and video.[Universal vs Apple in the iTunes Store Contracts]The Complex World of Copyright.Copyrights were designed to make sure that the creator of an original work would be compensated for copies, whether they be exact copies or derivative works based on their original. For example, a movie based on a play or a novel has to respect the copyrights held by the original work, because much of the value of that derivative work comes from the original.In the music industry, groups like ASCAP license performing rights of music created by composers, songwriters, lyricists, and music publishers. Bands playing their music have to pay royalties, which are commonly split between the writer of the song and the author of its lyrics. In addition to live bands, any commercial playback of music also requires performing rights licensing. Music played during a TV show, over the radio, or even in a restaurant requires obtaining a license and paying fees. Publishing music requires a different set of permissions referred to as mechanical rights. CD and record manufacturers pay music owners fees to create copies of a given work. When musicians perform and their work is captured as a “master recording,�? the reuse of that work must be licensed under master use rights. There are also synchronization rights involved in incorporating a music recording into a film or video performance or a commercial, and grand rights for using recordings as part of a dramatic performance such as a musical, opera or ballet. The music business is therefore based upon a series of complex legal relationships between writers, performers, distributors, and the groups that represent each of their rights and their legal obligations.Consumers Left Mystified; Fair Use Left Undefined.Outside of the complex world that funds artists and their work, the idea of paying a license to play or use a song in different contexts is hard to grasp. Laws to define protections for producers were worked out long ago to make sure artists would get paid, but the rights of consumers haven’t been so carefully defined. Consumers’ rights are based on the general idea of “fair use,�? which isn’t a right defined in law. Instead, its a general defense against claims of copyright infringement. If the recording industry were to sue an individual for copying music from their CDs onto their iPod, they would likely lose because the idea of fair use generally determines that consumers can use their own music in reasonable ways. Unfortunately, fair use has not been upheld in clear court precedents or in law to the point where it can really be called a right. This leaves things enshrouded in a grey fog where consumers assume that anything they can do with “their music�? is fine, while the music industry seeks to find new ways to sell its products. Ask Not For Whom the Ring Tones.Writing about Apple’s iTunes ringtones, John Gruber of the Daring Fireball cited Engadget, which reported that “the RIAA wanted to be able to distribute ringtones of its artists without having to pay them big money to do so (surprised?), and it won a decision last year before the Copyright Office saying that ringtones weren’t ‘derivative works,’ meaning they didn’t infringe on the copyright of the songwriter.�?Engadget, known for shooting from the hip rather than the brain, didn’t really understand whole story. From its report, Gruber concluded, “So if you have the right to play a song, you have the right to use it as a ringtone on your phone.�?Gruber blamed a “complicated, confusing mess of a ringtone policy�? on Apple, and suggested the company should have simply handed out tools to create ringtones from any users. Incidentally, that’s apparently what Apple was going to do back in January.  Derk Nek of Epplegacks explained that--unfortunately--what the RIAA actually won in the case cited by Engadget was instead the right to collect money for ringtones without distributing those fees to the artists they represent. There was no establishing that ringtones are not protected intellectual property, so the RIAA will continue collecting royalty fees, because distributing songs or portions of songs requires mechanical rights. Playing a ringtone might also--in the mind of the RIAA and the letter of the law--require performing rights. [The Ringtones Racket - Daring Fireball]Ringtone Performing Rights.Nek added, “I produce porn for a smattering of online websites. In one of our scenes, a ‘talent agent’ gets a phone call on his cell saying the girl will be right up, and of course the scene continues as expected. We put this file online and no complaints... until we went to release it on DVD.“With the internet if there's a complaint, you simply pull the file like it never existed, or re-edit it like it never existed in it's previous form. With a DVD there's a hard copy that's on retail shelves, which means a retailer, distributor, production company and owner of the content is liable. We were told the ringtone had to go because we didn't have the rights to have to redistributed in our DVD release. Dumb, but understandable.�?“The thing about studios, networks, and labels, is they'd like nothing better but to track every pair of eyes and ears that views or hears their content, and charge based on that rather than unit. They consider a ringtone, which could be heard in a crowded cafe, subway, or street corner, something that would be a public performance of the work, and thus feel they need to be compensated. Dumb, but the truth as far as I can deduce.�?[Letter to DF in regards to The Ringtone Racket article - Epplegacks]Do You Have A License for that Ringtone?In addition to carefully watching every performance in order to catch any playback of any bit of music that was not paid for with the appropriate license, music industry also monitors Apple to make sure it does not confer any suggestion that users might use the labels’ music in ways that might leave money on the table. When they saw that Apple might allow users to put songs on phones, they flipped a nut and sent in lawyers to iron out a contract covering iPhone ringtones. Apple negotiated a far lower price than any other ringtone distributor, but the labels are worried that consumers might figure out how to create their own ringtones, just as they were able to figure out how to put music from CDs onto computers and MP3 players, a practice that got out of hand and resulted in more music being handed around for free than legally paid for. Nek added, “The iPhone is a hardware product which Apple derives substantial profits from, ringtones are something people want but the current state of copyright law in the states makes much more unfair than it should be.�?[Ringtones - Apple]The Wrestling Between Apple and the Labels and Studios.Nek also outlined another example of the distribution skirmish between Apple and its content producers: the fight over TV downloads from NBC/Universal.  “NBC just demanded of Apple that to get Heroes for the iTS, they'd need to buy two episodes of those shows no one downloads like Passions or Friday Night Lights. Apple says that this would force them to sell Heroes at $4.99 not because NBC wants that much for each episode, but because Apple isn't in the business of losing money selling a popular show for $1.99 when they had to buy two very unpopular shows at $1.49 each on which they won't make back their investment. So instead of going ahead and selling video files of less resolution than are available at no cost on torrent sites for that $4.99 price to keep them in the black, Apple told NBC to walk.“NBC also expressed that they wanted Apple to crack down on their customer base who were walking around with devices full of stolen content, read: ‘iPods can play unprotected AAC and MP3, MPEG-4 and H.264 video files and we want you to switch to only DRM'd content so we know that every track and video file on those devices was paid for’. Again, Apple told them to walk. If all Apple was concerned with was profit, then they would've accepted the terms because it costs them nothing to keep files on the iTunes Store and a certain percentage would keep on buying TV Shows at the inflated price, which in turn would keep selling iPods and Apple TVs so people could view them. But Apple saw in these terms from NBC a very anti-consumer agenda, and made their stance on any such terms by NBC or other studios plain.“For Apple to put a ringtone editor into iTunes and have it work with the user's existing library would be in a consumers best interest definitely, but it would also be illegal as far as I understand the mickey mouse laws. Apple didn't become number three in music sales by pursuing illegal business plans, they did it by offering a better product at a competitive price. They competed against piracy with the iTunes Music Store and won. They're now competing against current mobile service providers ringtone products and are going to win.�?A Legal Problem Your Representatives Don’t Care About.It is fortunate that it is in Apple’s own interests to defend the rights of consumer. The reality of copyright law isn’t going to go away however. Its complexity is seldom discussed in the simpleton arguments that suggest that the RIAA should vanish and “that artists�? are somehow magically going earn a living without a complex system to funnel money back to them as their work is copied and performed, particularly when most music is traded around for free.If the government had any interest in representing the rights of citizens as consumers, we’d have clear and fair consumer rights spelled out in law, and the music industry would have to respect them. Instead, the government is working for the industry, setting up a police state of criminal codes designed to enforce the anti-consumer laws already on the books. It doesn't help that they’re also distracted by efforts to legislate morality and criminalize free speech. Until citizens start to care about what their government is doing, these problems won’t be solved, and we’ll be stuck having to sweat copyright infringement when our mobiles ring. Of course, that should really be the least of our worries when our government is serving the moneyed interests of industry before the rights and protections of its citizens. What do you think? I really like to hear from readers. Comment in the Forum or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast! Submit to Reddit or Slashdot, or consider making a small donation supporting this site. Thanks!
13-year-old trades iPod for Walkman, reports on mysterious ancient artifact

If you want to get an idea of just how fast technology moves, a brilliant piece from the BBC should help light the way. The setup is simple enough: 13-year-old Scott Campbell is given a Walkman and told by his dad that it was "the iPod of his day" -- and that's when the fun begins. Having never used or even seen the device, the young man proceeds to experience the kind of equilibrium-destroying confusion which we can only imagine the elderly first felt when attempting to set a VCR timer (you do remember what VCRs are, right?). We've collected a few of the choicest bits from the teen's observations, but we highly suggest you read the full article... you won't be sorry. Our favorite picks (direct quotes): When I wore it walking down the street or going into shops, I got strange looks, a mixture of surprise and curiosity, that made me a little embarrassed. It took me three days to figure out that there was another side to the tape. That was not the only naive mistake that I made; I mistook the metal/normal switch on the Walkman for a genre-specific equaliser, but later I discovered that it was in fact used to switch between two different types of cassette. I managed to create an impromptu shuffle feature simply by holding down "rewind" and releasing it randomly - effective, if a little laboured. When playing, it is clearly evident that the music sounds significantly different than when played on an MP3 player, mainly because of the hissy backtrack and odd warbly noises on the Walkman. [Via Richard Lai]Filed under: Portable Audio13-year-old trades iPod for Walkman, reports on mysterious ancient artifact originally appeared on Engadget on Mon, 29 Jun 2009 09:24:00 EST. Please see our terms for use of feeds.Read�|�Permalink�|�Email this�|�Comments
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