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E-mails From 2003 Reveal Microsoft Caught 'Flat Footed' by iTunes Music Store Launch

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Over the weekend, Groklaw discovered a couple of interesting e-mails sent by Microsoft executives Bill Gates and Jim Allchin to other members of the Microsoft executive team revealing that the company had been taken by surprise by Apple's launch of the iTunes Music Store in April 2003. The e-mails were made public as part of an antitrust suit brought against Microsoft in late 2006 for which Groklaw has been documenting the exhibits provided as evidence.

Gates' comments offered a candid assessment of the situation, expressing surprise at Apple CEO Steve Jobs' ability to strike distribution deals with music companies.
Steve Jobs ability to focus in on a few things that count, get people who get user interface right and market things as revolutionary are amazing things.

This time somehow he has applied his talents in getting a better Licensing deal than anyone else has gotten for music.

This is very strange to me. The music companies own operations offer a service that is truly unfriendly to the user and has been reviewed that way consistently.

Somehow they decide to give Apple the ability to do something pretty good.
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In trying to understand how best to respond to Apple's move, Gates noted that Microsoft was caught "flat footed" by Apple's music download service and questioned appropriate strategies to respond.
I am not saying this strangeness means we messed up - at least if we did so did Real and Pressplay and Musicnet and basically everyone else.

Now that Jobs has done it we need to move fast to get something where the UI and Rights are as good.

I am not sure whether we should do this through one of these JVs [joint ventures] or not. I am not sure what the problems are.

However I think we need some plan to prove that even though Jobs has us a bit flat footed again we move quick and both match and do stuff better.
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Microsoft vice president Jim Allchin offered a briefer assessment of the situation, offering only a pair of observations:
1. How did they get the music companies to go along?

2. We were smoked.
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The same court case earlier revealed another e-mail from Allchin from 2004 in which he famously said that he "would buy a Mac today if I was not working at Microsoft." Steve Jobs used the quote to take a jab at Microsoft, displaying Allchin's statement at the beginning of Jobs' keynote at Macworld San Francisco 2007.

Article Link: E-mails From 2003 Reveal Microsoft Caught 'Flat Footed' by iTunes Music Store Launch
 
Article Link
https://www.macrumors.com/2010/02/11/e-mails-from-2003-reveal-microsoft-caught-flat-footed-by-itunes-music-store-launch/
VenusianSky said:
What is with all the focus on Bill Gates today at MR?
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for some people making fun of Gates is the highlight of their day ;)

iTunes definitely caught *everybody* off guard; it's interesting to see Gates saying that MS needs to come up with a response - because they sure as hell never produced one.

I do wish iTunes weren't so painful to use sometimes though, especially on a PC. For all its advantages, it still has some issues :(
 
Wow, an e-mail that's nearly 7 years old finally surfaces now, and shows that Microsoft was, and still is playing catch up to Apple. (Not in market share, I know)

I mean, the Zune, C'mon... what's next, the MicroPad?? One failed miserably and the other, if Microsoft even attempts to compete in the iPad arena, will be a total flop as well. Stick to software Microsoft. And even at your best at that, you're still second rate...

I sound like a FanBoy don't I? Hmmm:rolleyes:
 
who?

"I am not saying this strangeness means we messed up - at least if we did so did Real and Pressplay and Musicnet and basically everyone else."


Who are Pressplay and Musicnet?
 
The Internet - Microsoft caught flat-footed
The iPod/iTunes - Microsoft caught flat-footed
Web search - Microsoft caught flat-footed
The iPhone - Microsoft caught flat-footed

Is there a pattern here?
 
Look, I work in a hotel and the owner has like 11 of them and the management just can't get their **** together while the competition is doing wonderful things. We are surrounded by competitors that "GET IT" while my managers look around like elk in the tractor trailer headlights. It is an internal problem IMHO with MS.
 
So, think Steve is going to take the rest of the day off to sit at home and re-read that thread?
 
You wanna know why? I work in the record industry and saw the fast one pulled first hand. Apple basically said that iTunes and the iPod would be limited to the Mac platform. So with that small of a market share, who really cares? Therefore, they got the deals set in place. Then they took iTunes and the iPod to Windows. End of story....
 
carmenodie said:
Look, I work in a hotel and the owner has like 11 of them and the management just can't get their **** together while the competition is doing wonderful things. We are surrounded by competitors that "GET IT" while my managers look around like elk in the tractor trailer headlights. It is an internal problem IMHO with MS.
Click to expand...
I think it comes from a lack of focus. Google is having similar problems these days. When MS went after the XBox, they nailed it. They were focused and hungry. Everything else they do is half-assed. They dip a toe in the water here and wax eloquent about vaporware there... They aren't tightly focused on any of these application areas.

A lot of the problem is that it's hard to find a business that will affect their bottom line when compared to their current businesses. This is always a problem with big companies.
 
kyzen said:
for some people making fun of Gates is the highlight of their day ;)

iTunes definitely caught *everybody* off guard; it's interesting to see Gates saying that MS needs to come up with a response - because they sure as hell never produced one.

I do wish iTunes weren't so painful to use sometimes though, especially on a PC. For all its advantages, it still has some issues :(
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What do you mean? iTunes Runs the same on my mac as my PC, Whats a pain about it?
 
LagunaSol said:
The Internet - Microsoft caught flat-footed
The iPod/iTunes - Microsoft caught flat-footed
Web search - Microsoft caught flat-footed
The iPhone - Microsoft caught flat-footed

Is there a pattern here?
Click to expand...

yet somehow they're probably the most important company of the 20th century...:rolleyes:
 
VenusianSky said:
What is with all the focus on Bill Gates today at MR?
Click to expand...

It's a tradition "borrowed" from the dystopian novel, 1984. The Two Minutes Hate is a daily period in which Party members of the society of Oceania must watch a film depicting The Party's enemies (notably Emmanuel Goldstein and his followers) and express their hatred for them and the principles of democracy.
 
LagunaSol said:
The Internet - Microsoft caught flat-footed
The iPod/iTunes - Microsoft caught flat-footed
Web search - Microsoft caught flat-footed
The iPhone - Microsoft caught flat-footed

Is there a pattern here?
Click to expand...

Just think, if Bill Gates had his wits about him he'd be the richest man in the world. :rolleyes:
 
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