iTunes Caves in to Competition

Apparently Apple reads my articles. Just one day after I posted my article “Do You Really Own Your Music?” on Applematters.com and complained about having to pay extra for non-DRM tracks, iTunes just dropped their price on these tracks to $.99, which makes them the same price as all their other tracks.

This is a great move, but I still won’t be buying songs on iTunes. Why, you ask? The iTunes plus tracks are still AAC format instead of Mp3. That may not seem like a big issue, but Mp3 is the industry standard for compressed music. Virtually every DVD player in the world will play Mp3 tracks, many new car audio players will play Mp3s burned to a CD, and of course, every portable music player will play Mp3 tracks. How many of these will play AAC? iPods. Period. There are probably a few devices that play AAC, but I won’t buy them just for that.

Apple shot themselves in the foot a bit here. First, they had a proprietary system of iTunes and iPod, and because it was all locked down with DRM, no one really cared. Now, with stores like the Amazon Mp3 store, you can buy non-DRM Mp3 tracks that will be automatically added to iTunes and your iPod. Oh, and did I mention the Amazon store is cheaper? Not only are many of the tracks $.89, but you can get entire albums for bargain prices like $4.99, $5.99, etc. In a world without proprietary DRM locking people into specific players and stores, there is room for a lot of competition, and Amazon Mp3 is just the first of many to offer a good alternative to iTunes.

But Apple will still continue to push their AAC format for months, if not years, because they have tried to convince us that it will become the industry standard. The problem is, we already have an industry standard. We don’t need another one. Sure, AAC might sound a little bit better, but not enough to counter the fact that they won’t play on any devices you own.

So Apple tried to charge a premium for non-DRM tracks, and it failed, so they caved in to competition, and now they’re offering them at the price they should have in the first place. Soon, they’ll cave in and at least offer the iTunes Plus tracks in Mp3 format too. And after that they’ll cave in on pricing and stop being so controlling of the media in their store.

Either that, or the iTunes store will simply go out of business in the face of better competition.

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Two More Articles on AppleMatters.com

I now have two more articles posted on Applematters.com

8 Reasons Windows Users DO Switch to Mac

Do You Really Own Your Music?

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The Death of Windows Genuine Advantage?

Microsoft just announced it will allow users to download Internet Explorer 7 without checking for Genuine Advantage validation.

From the IEBlog:

Because Microsoft takes its commitment to help protect the entire Windows ecosystem seriously, we’re updating the IE7 installation experience to make it available as broadly as possible to all Windows users…installation will no longer require Windows Genuine Advantage validation and will be available to all Windows XP users.

When Genuine Disadvantage first appeared, everyone pegged it as a security risk. If there were thousands or millions of machines that could not get updates (whether they run legitimate copies of Windows or not) they are easy targets for viruses, spyware, and malware. It seems that Microsoft has finally owned up to this reality, and they’re loosening the chains a bit.

If you ask me, this is probably the beginning of the end for Genuine Disadvantage. It was a failure from the start. Not only could it be easily disabled, but it locked out so many legitimate users and caused such a negative backlash for Microsoft that they probably wished they had never done it in the first place. I think we will see Microsoft loosening the validation requirements on more software and updates going forward, until they finally just abandon it altogether.

Plus, the idea of calling it an “advantage” as if it has some value for the customer was always in insult to everyone’s intelligence. Say what you will about Apple’s recent treatment of iPhone customers, and I think it’s terrible, but at least they’re not trying to convince anyone that it’s making their lives better.

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Don’t Count the Zune Out Yet

So, Microsoft announced the New Zune Players recently, and most people, myself included, are unimpressed. Right now they’re nearly identical to the current iPod lineup, with none of the cool new features like cover flow or touch screens.

But if there is one thing I know about Microsoft, it’s that they never give up. Don’t count them out yet. I’m not the first to make this comparison, but when Internet Explorer was first released, everyone thought they were mad to create a new browser. At that time, everyone was using Netscape, and the first version of IE didn’t even have as many features. The second version wasn’t much better either. The third version was significantly better, started gaining market share, and then Microsoft starting bundling IE with Windows, and now no one even remembers Netscape. Everyone said they were crazy to enter the console market as well, and now the Xbox 360 has a dominant spot in the console market.

I don’t know if they can pull off the same thing with the Zune and I don’t know if they’ll ever take a significant share of the market, but I think Microsoft’s plan all along was to release a few versions and learn from their mistakes, and then come out swinging. We may see some real innovation in version 3 of the Zune, and it could be beyond anything Apple has given us yet.

On the other hand, it might not…

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Amazon Mp3 Site Looks Good

I haven’t tried it myself yet, but the word on the street is that the Amazon Mp3 site is really great. You get 256k Mp3’s with no DRM copy protection, meaning they work with any mp3 player, and they’re cheaper than iTunes, usually 89 cents a song. Oh, and they also have a little program that automatically adds downloads to your iTunes library. Now THAT is how you take on iTunes.

Is Amazon Mp3 the iTunes killer? No, and I’m so tired of hearing that phrase. Every new store doesn’t have to be an iTunes killer. Every new device doesn’t have to be an iPod killer. All it has to do is make money and slowly build market share. If it does that, it’s a success, and more importantly, it puts more pressure on iTunes to innovate and compete on price.

You’ve probably heard about the Radiohead story, where they are not selling their album on iTunes because iTunes won’t let them sell the complete album without also selling the individual tracks. There is no reason they couldn’t do this, but it’s that bit of Apple arrogance again, where they think they know what people want and they’re not willing to listen. Well, if Amazon and some other online stores are willing to be flexible on things like this, how long before Apple feels the pressure and has to do it as well?

I think competition in this arena can only be a good thing, and the fact that DRM is dying a slow death is the best news I’ve heard all year.

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I’m on Paul Thurrott’s Blog

Paul Thurrott gave me a nod in his fantastic Internet Nexus blog. He gives some excellent commentary, and I agree with most of what he says.

PCs come in many, many more price points.
…if you want to spend $500, there’s a decent PC out there for you. The same is not true on the Mac side. It just isn’t.”

He makes a good point here. When you do a comparison of price on similarly-equipped machines, Macs and PCs are very similar, but I have to admit, it would be nice to have more options. This is a slippery slope, though. Part of the charm of the Apple line is the simplicity of the choices. I think there is room for one or two more Macs in the lineup, but at what point do you have so many choices that it gets confusing?

Also, part of the reason Apple makes changes so quickly is their focus on fewer configurations. They are able to make sweeping updates very quickly because they don’t have to test as many machines.

I do think you have to factor the value of Apple’s stellar support into the price, as well as things like free classes at Apple stores, if they’re available to you. iLife is also a big bonus, though some may not use it often. Windows has never impressed me much with its bundled software or its support, and those things have value.

If you’re not familiar with Paul’s work, he runs the Supersite for Windows as well as his Internet Nexus blog. He also does a weekly podcast with Leo Laporte called Windows Weekly. Even though Paul’s focus is on Windows and Microsoft, I think he gives a fair assessment of Apple and Macs, and he is not afraid to criticize either side when they make mistakes.

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8 Reasons Windows Users Don’t Switch to Mac

by Steven Leigh

Let me say it right off the bat: Macs running OS X give the best computing experience on the planet. It’s not that Macs are perfect, but compared to everything else, there is nothing like the Mac experience. With that in mind, it’s difficult for many Mac users to comprehend why there are so many Windows users suffering needlessly by running a Windows system. That’s where I come in.

I have been a die-hard Windows user since I started computing. If you had told me I would switch to Mac at any point in the future, I would have laughed at you. There was nothing that could ever make me switch! Well, that didn’t exactly last forever, but as a recent Mac “switcher,” I have a unique perspective on both worlds. Experienced Mac users may not have the perspective that it takes to see what makes Windows users stay with Microsoft, and let’s face it, some Mac users (not you or me, of course) are just downright zealots who think that anyone using Windows should be cast into the fiery pits of Mount Doom and forgotten for all eternity. (Nerd alert!)

So allow me to take an objective look at what keeps some Windows users from switching, from the perspective of someone who has resisted switching to Mac for a long time and was looking for any excuse to stay with Windows. And once you’ve read this article, check out 8 Reasons Windows Users Do Switch to Mac to learn what is working.

1. Ignorance
Ignorance is merely a lack of knowledge, and when it comes to Macs, most Windows users, myself included, are extremely uninformed. My experiences with Macs were mostly pre-OS X, before the really good stuff began to happen, and I made a decision that Macs were not for me and never looked back. Many Windows users think they’ll have to “re-learn everything” and that nothing will be familiar. While this is partly true, Macs are so much easier to use; many beginners find it easier to do most tasks intuitively, without having to be taught or open a manual. As someone who has spent long hours teaching family and friends how to do simple tasks like email attachments, I can you tell that the same cannot be said about Windows.

2. The Office
No, I’m not blaming Steve Carell, I’m talking about where you work. Most office environments run Windows, period. While this is beginning to change, the reality is that the majority of people are using Windows at the office. If you need to bring your work home and get things done, it makes sense that you should run Windows at home, right? Not really, but the average Windows user doesn’t know about Office for Macs, or that their files will still be compatible. They don’t realize how easy it is to work across both platforms, or that they can even run Windows on their Mac when all else fails. Even if they do know these things, they figure that it will be more difficult to work on two platforms than it is worth.  Apple is doing a great job lately of educating people on these misunderstandings, but it is still the prevailing thought among Windows users. Even if the Mac doesn’t get a strong hold on the business market, it’s important that people know they’re capable of it.

3. Hardware
I have always been a bit of a hardware geek, and used to enjoy building my own machines. Every few years, I would upgrade the motherboard and processor, and re-use the case, the hard drives, and power supply, and could make a significant upgrade for $400-500. I can never do this with a Mac. Hardware geeks are hard to convince for this very reason, and even average Windows users may scoff at something like an iMac because they don’t want to pay for a new monitor every time they upgrade their computer. Mac Minis are popular with Windows switchers because they can use their current monitor, mouse, and keyboard and not have them bundled as with an iMac. This is becoming less of an issue as the price of Macs have come down considerably, and technology moves so fast nowadays, you’ll likely to want to upgrade almost every component every few years anyway. As a former system-builder, I’m now at a point in my life where I would rather pay a little extra for a system that works right out of the box and has great support than save a few hundred dollars at the cost of countless hours of being my own tech support.

4. Price
The perception by Windows users is that Macs are more expensive than Windows PCs. This may have been true in the past, but the new Macs are very comparably priced to similarly equipped PCs. Unfortunately, the perception remains. Budget PCs may undercut Mac prices, but budget PCs sacrifice quality parts and support. Apple has shown that they are not interested in competing in the budget computer market, and it’s a smart move, as the margins in this area are extremely small. Windows users should consider what they’re getting for the extra money. Apple’s support is top-notch, the included software, such as iLife, is stellar, and the quality and design of the machines is always first-class.

5. Lies
Let’s face it: Apple tends to bend the truth once in a while, especially about Microsoft and Windows. One of the “Get a Mac” ads states that Windows is for spreadsheets and pie-charts, while Macs are for “fun stuff” like photos, movies, etc. To Mac users, this seems both funny and true. Windows users, however, are thinking of the aisles and aisles of games that are available for Windows, while there is a half-shelf devoted to games for the Mac. I don’t know about you, but I can only have so much fun playing with photos. Things like this just sound like lies, and they sometimes present Apple as a company that has to lie about its competitors to get business. Other ads point out flaws in Windows that are so true it hurts, especially letting people know that Macs don’t get viruses, or that Macs include a lot more useful software and less bloat than Windows. Don’t get me wrong, I take the commercials as a light-hearted jab, as they are intended, but some of them bend the truth so much that it creates mistrust.

6. Windows Bashing
Apple and Steve Jobs are constantly making jabs at Vista and Microsoft, and Mac users follow suit. That’s understandable, but when Steve Jobs is constantly berating Vista and Microsoft instead of touting the features and advantages of Apple’s own products, it makes Windows users think that Macs don’t have much going for them. I remember watching the 20 or 30 minute Vista-bashing session at the WWDC conference and wondering why Steve Jobs is so insecure that he has to berate the opposition. Can you imagine shopping for a car and having the salesman only talk about what’s wrong with the competition’s cars? This always reminds me of John Kerry, whose entire campaign was about bashing Bush instead of telling you why he was a good candidate himself. It didn’t work for him either. Apple, your products are the best in the industry. Act like it.

7. Vista
I’m going to let you in on a dirty little secret, but you need to sit down first. Windows Vista is actually a good operating system! There. I said it. The ugly truth is that Vista is the best operating system Microsoft has ever released, and for many users, it is good enough. That’s right, good enough. I really like Vista. It fixes so many of the little issues that have plagued me for years, and if I had to use Windows, it’s the version I would use. But now that I have spent time with OS X, I could never go back. For Windows users who have never touched OS X, or are resisting Macs for any of the reasons listed here, Vista is the best operating system they have ever used. I know, I pity them too, but all we can do is hope that they see the light eventually.

8. Mac Users
Okay, I’m not talking about you or me here, but there are some Mac users out there who have just a little too much love for Apple. When they are shouting (or typing in all caps) about how much better Macs are, they’re not convincing anyone to switch, they are scaring them away. Even well-intentioned Mac users can sometimes get a little carried away. I’ve had many friends lecture me for hours on end that I was stupid not to switch, and all it did was push me further away. In contrast, when I got a chance to sit down and quietly use a Mac, I began to enjoy the experience, and luckily, a friend was smart enough to answer my questions and just let me play for a while, and it made all the difference.

Conclusion:
Apple is doing so much right these days. I am sometimes awestruck by their constant stream of good decisions, but there are still so many Windows users unwilling to take the bait. I think it helps to know what we’re up against when we’re trying to convince Windows users to join the Mac side, and I hope I have provided some insight.

Did I miss some reasons? I’d love to read them in the comments.

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