Filed under: Launches, Industry, Consumer experience, Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL)
Microsoft (NASDAQ: MSFT) can’t sell any Zunes, so it has come up with a plan so that it will continue to do badly in the business. According to The Wall Street Journal, Redmond “is introducing a new technology that’ll let users of its Zune portable devices legally share portions of their song libraries with other Zune users.” To take full advantage of the new product users will have to purchase a $14.99 a month service called Microsoft’s Zune Pass.
None of that is going to help get share from the Apple (NASDAQ: AAPL) iPod. Not only is it the largest music download service in the US, the iPod has almost 80% of the market. Zune owners can’t share music with other Zune owners because there are so few of them. Perhaps Microsoft could start a “Zune-user location service” and charge money to help people find the two or three other Zune customers in their town.
There have been hopes that the Zune would do for Microsoft in the portable music device business what the Xbox did for it in gaming. But, Apple’s footprint is too big and it is adding services, like video downloads and rentals, too swiftly.
Microsoft should stick to trying to buy Yahoo! (NASDAQ: YHOO).
Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 letter.
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