Free Zune with Marketplace Subscription?

Microsoft may make the Zune less of an iPod competitor and more of an iTunes competitor. They may follow the lead that cell phone companies have been using for ages, free [or discounted] phone with the purchase of a contract (typically for 2 years). This will ultimately be the same way that the iPhone will be cheaper to buy from Cingular, but in this case you pay the fee for the music and the contract is with Microsoft.

Speculation has begun from a comment made by Zune marketing director Jason Reindorp. He stated that they were looking at a Zune Pass subscription that is like a cell phone contract. The model has worked very well for the cell phone industry, so why not for the MP3 marketplace?

It’s quite a good concept because it really would bring in more customers. Most people don’t really use the WiFi functionality of the Zune, so that really isn’t a killer app. However, the concept of being able to download all your music and get a Zune music player for a fixed price, well that sounds pretty good for the average joe.

The only thing they need to do though is keep the price point of the device at the same point. This would be disaster for Apple, because would you rather buy an MP3 player (iPod) or a 2-year subscription with a Zune for the same price? Some would call this a VERY smart move. Let’s see how it goes.

Get EMI music from iTunes and put in on Zune

Today Steve Jobs announced that the iTunes store will begin selling songs by EMI on iTunes without DRM! This move has been expected for a while with Steve Jobs open letter to the industry. However, the DRM-free versions of the songs will cost you 30 cents more. An added bonus of getting a DRM-free song from iTunes is that the quality of the file will be better which will be good news for some of us.

So now you can choose to get your EMI music from the iTunes store, if you own a Zune. But this won’t be big for most of us, because most music comes from Universal and secondly from Sony BMG. However, this is a move that will shake the industry.

At this point there is no word on whether the Zune Marketplace will follow and include EMI’s DRM-free library. However, it does seem likely to happen soon as more labels move towards DRM-free music. So enjoy in this new found freedom!

Update: When Microsoft was contact and asked about this by Engadget, this is what they had to say:

Consumers have indicated [having DRM free music] is important to them so Zune has been working with a variety of partners to head in this direction

Apr 1st, 5:08 am

By:
Mike

Microsoft buys out ZuneBoards, Sells to Apple and now the iZune!

Don’t you just love April? to be more specific, April Fools Day?
You get all these exciting interesting stories going on, specially in the Zune world, and wow there is allot of change for one day!

Here is what we have going on in the Zunesphere:

Apparently Microsoft has brought out my buddies at Zuneboards.com for, wait for it… $95k, pretty cool indeed! I expect my slice soon ;)

Then we have the new iZune coming, which Zunerama broke the news to earlier today!

And last but not least, surprise surprise Apple has brought out Zune, I know I totally saw it coming!

So to recap, Microsoft brought out Zuneboards.com which then got sold along with every thing else Zune to Apple and now the iZune is coming out. Wow hard to keep up here!

What would the end of DRM do for Zune?

  One of the biggest issues regarding digital music right now is DRM. Recently, we have seen that the industry is strongly reacting to Steve Jobs open letter concerning DRM. EMI Group is thinking about making all their digital tracks DRM-free. But what would the loss of DRM mean for Zune. We will discuss the pros and cons of DRM on Zune.

 The biggest hassles of DRM on Zune is caused due to Zune’s unique sharing feature. Currently the sharing feature is a pain for users because of the 3play/3day rule that has been implemented. We also have seen some other issues with the sharing feature, such as not being able to share certain songs. If DRM were to be removed, then we would no longer see restrictions on the music we share. But, the record industry (RIAA) may feel that this is similar to practices like P2P services and get Microsoft to block the sharing feature all together. So the end of DRM could either be positive or negative for the sharing feature depending on how RIAA feels about it. But looking at the past, chances are high that RIAA will ask Microsoft to lock up the sharing feature.

 Another issue is in regards to the Zune Marketplace. We may have to say goodbye to Zune Pass because unlimited downloads is strictly available due to DRM restrictions. If DRM is eliminated chances are that ZunePass will be a thing of the past along with other music subscription services from other providers. Ultimately this will be a loss of a great feature of the Zune Marketplace and make it exactly like the iTunes Store. However, it is expected that songs will be slightly cheaper if the DRM was removed. So this can either be good or bad for user depending on what they use it for.

 The only real positive result is that you will be able to buy your music from any provider and play it on the Zune. But from a general standing point, it appears that DRM may actually be a good thing for the Zune.
 

Cesar comments on Phone and Breaking Screens

 Cesar (Microsoft employee) from ZuneInsider has basically debunked the rumours of a ‘Zune Phone’ or ‘Breaking Screens’ that we reported earlier today. He states that this is basically ‘rumor and speculation’, but in the past some of the things he labelled as rumors happened, while some didnt. So it is hard to know whether either of these are true.

However, he does imply that both sources are ‘fake’ (as seen below):

“BTW, if you are the imaginary friend ”source” cited in the story, can you email me? We should go  pretend bowling. And we can invite the “friendly tipster’s buddy” (from yesterday’s rumor), too.”

 

 He has also stated that the Zune is about connecting people to music and that a phone may be a part of that experience, but as of now they still haven’t begun working on it. This is indication that a Zune Phone is on Microsoft’s mind and that we very well could see it on shelves by late 2007.

Microsoft Discussing ‘Zune Phone’?

   In a article by CrunchGear, it looks like Microsoft will be adding a Phone to the Zune brand as early as next November. Yet again however, CrunchGear is reporting that this is a tip (but go on to say it is as definite as tips can be) . Apparantly, Microsoft executive will be meeting today to discuss the details, strategies and timescale for the release.

 There are few other details known about the phone, but the following is being reported by CrunchGear:

• It will work with the Zune MarketPlace
• It will likely not run Windows Mobile, and rather use something similar Zune interface
• Connect to XBOX 360 and stream video to the phone wirelessly
• If things go as planned should be in stores for 2007 Holiday Shopping Season

   And I personnally think that there is a strong chance of them using the design of a existing phone like how Zune is like Toshiba GigaBeat S and iPhone is like the LG KE850.

  Some may believe that this is inspired by the iPhone, which is set to launch this summer. However, Microsoft talked about the ‘Zune Phone’ as early as September 2006, as we report earlier. Below is what the general manager of global market for Zune said in September.

“Microsoft Corp. said on Thursday a Zune-branded phone is part of its future plans to expand in the digital music market, now dominated by Apple Computer Inc.’s iPod. “A Zune phone is definitely part of the future of this brand,� Chris Stephenson, general manager of global marketing for Zune, told reporters at a news conference. He did not give specific details.� (from September 2006)

  So the ‘Zune Phone’ is nothing new, however it’s a shame Microsoft didnt announce this earlier because now the general public will see it as a ‘copy’. It also leads me to wonder what the Zune Phone have that the iPhone doesn’t.

Zune Screens Cracking while Charging?

  Engadget is reporting that there have been Zune screens that are getting cracked while charging. The information was provided to Engadget by a tipster who’s friend works for a call centre that handles Zune issues (Engadget has not mentioned the credibility of this tipster). The call centre has supposedly recieved many calls regarding to the Zune screens cracking after being left to charge.

  The tipster’s friend has also said that the issue is due to the lithium ion battery in the Zune. The issue seems to be that the battery expands when overheating and therefore causes pressure on the screen causing it to crack. It is huge issue for Zune owners because it is not covered by Zune’s warranty and ultimatly means their Zunes are dead unless Microsoft begins covering repairs for the screens.

  However, I do not believe this story to be true. My biggest issue with the story is that it was provided by a tipster’s buddy, so there is a number of people that could be lying even the customers that call in. Also, until now I haven’t heard of any issues like this happening and Zune has been out for awhile now.

  Have any of you had this issue with the screen breaking while charging?