Originally posted by the_dalex
From a marketing perspective, there are good reasons to play WMA, because that would pull Microsoft's last rug out from under them. If I were SJ, and if I wanted to stick it to Microsoft in the music world I would...
1) Build up the iPod into the most popular music player (done)
2) Build up the ITMS into the most popular online music store (done)
3) Let them criticize the only "flaw" being that it doesn't play Microsoft's proprietary format (done)
4) Suddenly allow the iPod to play WMA via a firmware update, in a final death blow (pending?)
When I look at the business model Apple has chosen, I don't see why this wouldn't work. We all are aware that the ITMS breaks even or at best makes a small profit, and the money is in the iPods. You don't want to sell music in WMA format, because you want the iPods to sell... but why not let the iPod play WMA? The only thing I can think of is that Microsoft would want a royalty or licensing fee, but if Apple came to them now, Microsoft can't deny them or gouge them without being dragged into court after their statements about "choice" being so important. Plus, I imagine if you just want a license to decode instead of encode, it wouldn't cost much.
I personally believe that the ITMS is the best music store out there, and I know SJ agrees. Let customers try them all with their iPod, and they will use the best service (or a combination of them all), but the important thing is...they have an iPod.
Now is the perfect time for the death blow, with the upcoming Pepsi promotion and the new HP crossover. Apple can completely take over the market by opening the iPod to WMA, and Microsoft has basically challenged them to so they can't get in the way. Microsoft's predictable behavior has them in a real pickle, but they've walked themselves into a trap.