This strategy, not licensing AAC so it can be played on other hardware than iPods, didn't prevent Apple from attaining the number one position by far in sales of MP3 players and TMS. How do they decide when to change that policy, if ever? Will they lose iPod sales if they change the policy just to get TMS sales and AAC licensing fees? If they cater to cruddier players, are they demeaning the quality of their image? What's really in it for Apple to license AAC at this time? What would they get for it and what would they lose?
Here's an article from Spymac today which agrees with my point of view, suggesting AAPL will win increasingly with this policy of not licensing AAC. Bold type mine:
All's Fair in love and music
07/24/2004 00:45 / By Michael Simon
Earlier this week, CNET reported on a clash between Microsoft’s copy-protected CDs and iPod’s inability to play Windows Media Audio tracks. "The subsequent meteoric rise of the iPod — which does not play Microsoft-formatted music — has forced a change in plans: no more reliance on Microsoft's technology, no more (songs in WMA format) and an appeal to Apple for compatibility."
It seems the two leading suppliers of the technology, SunnComm International and Macrovision, are set to launch new versions of copy-protection technology which “will let people effortlessly create versions of songs for computers and portable players, in almost the same way people rip CDs to create MP3 files today.
"Software will be loaded on the music CDs that will help create a new copy-protected file in a form that can be played on an iPod, or on Microsoft-compatible players such as the Rio Karma, or on whatever else a consumer might be using."
However, it's a common fact that Apple has yet to license its FairPlay digital right management, and despite several third-party attempts to defeat it, has remained untouchable. Music fans are happy. Record execs are happy. And, it seems, even artists are happy.
And with a new source of income, Apple would certainly be happier.
So what’s the holdup? Steve Jobs has said numerous times that iTunes is largely a vehicle to sell iPods and, despite making a small profit the past two quarters, it is obviously not a source of any real revenue. Plus, Apple seems to have no qualms with outsourcing its technology, as Hewlett Packard is set to sell its own digital music player 7mdash; an iPod in HP clothing.
So why not FairPlay? The iPod is obviously the big money maker in this department, so if Apple is willing to part with that technology, why not, as they say, go for the gusto? The digital music field is still fertile, and with the right amount of water and sunshine, it could thrive for years on AAC. without a second thought of WMA.
By not supporting WMA on the iPod, Apple has forced music suppliers and downloaders to rethink WMA, and while many are still crying for support, an increasing majority has turned its sights to AAC, realizing its superior compression and quality ratio. As iTunes continues to place itself far out of reach of the other services, more and more AAC tracks will enter people's collections, eventually eclipsing WMA altogether.
With the final piece of the puzzle, Apple could firm its stranglehold on the music world once and for all, and prove that, as a contender, it is willing to do whatever it takes to win.
And, if Microsoft loses the music battle, it could represent the first of many dominoes.
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Meanwhile those fake iPod ads for Fuse are all over Manhattan. On the way to the theater I passed several of them and they had my blood boiling. Not as much as the Iraq ads, which are sickening to see, but boiling nevertheless. I know as the prime player, Apple is going to be parodied and copied, but I feel proprietary about it all. It's a matter of love.
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Finally, on the matter of thenew 23" cinema display, I'm still in distress about the removal of the on/off computer capability, but this is so head and shoulders above the prior display that I can't see giving it up. The addition of the sleep capabilty is lovely. It instantly puts the computer to sleep and instantly wakes it. There's no waiting for drawing and pondering. The decreased size and weight, the ease with which it can be adjusted, make it far more versatile on balance than the prior one, which was a hunk and clunk in comparison. Speaking of love, this is a display one can love with passion. It would be really easy to have multiples of this or the 30", too, given all of the above. Why they removed the ability to turn the computer on/off, I don't know and it's going to be a real hassle for me to deal with it, on the rare occasions the computer freezes and has to be shut down hard and turned on. The old keyboard method for turning on the computer was also fine. Apple's constraining us to keep the PowerMacs facing front and having only that one way to turn it on. Can't give up this display, though. This is a thing of beauty.
Linda
AI
