Is Microsoft making money on its 9-10% of the MP3 player market? No. Is Apple making money on its 9-10% of the home computer market? Yes.
Zune, like Xbox 360, is EPIC FAIL if you consider business success to be making a profit.
But Microsoft will spare no expense trying to capture some tiny slice of "cool."
Here's the bottom line: do most people spend $180 a year on music? NO. I sure don't. So the typical consumer would spend MORE with a Zune Pass than they would buying songs a la carte in iTunes. Period.
Actually I do believe the Zune has become profitable, not just on music sales for the device, but for hardware.
Even if it is not profitable in the short term, the long term plan might be 'hook' users on the device now, at a loss, so in the future they will choose a Zune rather than an iPod.
Some of the arguments on here are idiotic. I know a lot of people that would love Apple to introduce a subscription based model for the iTunes store. A lot of members here seem to have a very one track mind with regards to anything other than Apple (using the acronym M$ is very pathetic). My sister has a Zune and its fantastic looking and very easy to use. Anybody who says otherwise must be completely incapable of operating a very simple navigation system. Don't turn this into an Apple vs Microsoft war, both companies have got things right and things wrong.
Oh and the Zune has a roughly 9-10% share of the MP3 player market, so before any more posters claim this is an "EPIC FAIL", compare this to the similar marketshare of macs as home computers. Are they "EPIC FAILS" too? Thought not.
You guys should open your mind a little bit (just a little) and try to compare honestly iTunes vs ZunePass.
15$=
iTunes: 15 tracks, more or less
ZunePass: 10 tracks you own + millions of others you can easily download and listen on your PC/Zune
In conclusion: for just 5 bucks more a month Zune allows you to access its entire music catalog.
How this is supposed to be a bad deal? It's legal and pretty cheap. Here in EU I have to pay 3bucks a month for Last.fm (and I can't even choice which song to play or take them with me on my iPhone or other device).
And btw I don't get all this "ownership" issues, do you really listen every song in your catalog for 100 times? I'd bet that most people are annoyed after 10 times.
So why haven't all these other subscription models suceeded and taken over the market.
As for ZunePass, I did not spend $180 on iTunes last year for music - but if I had ZunePass I would surely download more than $180 equivalent on iTunes - probably 10 times that actually.
Yep, that was their plan with the Xbox 360 too. "Lose huge money now, make huge money later!" Then their boxes started spontaneously combusting and Nintendo came in and kicked their trash to the curb with the "underpowered" Wii. Looks like the bait & hook strategy isn't such a good one after all...
No they don't have 9 to 10 percent marktshare, and they are losing money on the Zunes therefore they are "EPIC FAIL".![]()
I can't believe you guys have never seen a Zune 'in the wild.' I mean I probably see 10 iPods for every Zune, but I see a lot of Zunes as well. Must be a college campus thing.
As for ZunePass, I did not spend $180 on iTunes last year for music - but if I had ZunePass I would surely download more than $180 equivalent on iTunes - probably 10 times that actually.
Agreed you probably would. But you would be downloading a lot of junk you probably wouldn't listen to often or for long just because you could. The purchase model tends to keep your buying to what you really like and want, and yet the song v album model also lets you get what's hot and sample new artists without buying whole CDs only to find out they suck.
I personally have never seen a Zune in "the wild" here in Glasgow, and I've never seen one for sale in the high street electronics stores like Currys.
Everywhere you look it's white earphones and iPods, and even the term "MP3 player" has been replaced across the world with the term "iPod", just as Coca Cola is the common term for Cola, even if it's Pepsi on sale people will ask for a Coke.
The brand has sunk into the publics subconscious, and the Zune has absolutely zero chance of denting its popularity or market share.
I personally have never seen a Zune in "the wild" here in Glasgow, and I've never seen one for sale in the high street electronics stores like Currys.
Just wanted to point out that's probably because the Zune is only on sale in the USA and Canada.
What about movies/TV shows that take up a lot of space and tons of free Podcasts? And there is no rule that says you have to fill up your iPod with music from the iTunes store.
This is much worse than their laptop hunter series.
And it's odd to me that Microsoft is conceding Apple's central premise in all these recent ads: Apple is concerned with quality while MS/generic PCs are concerned with low-cost.
Does anyone actually know anyone who owns one??? I personally do not.
EPIC FAIL.