- Microsoft placed a bigger bet on Zune this week, as it announced enhancements it hopes will solidify Zune as “the company’s all-in-one digital entertainment brand.” The Zune brand includes digital audio players, software, and an online music store.

One approach the company is using to battle Apple’s market-dominating iPhone is to add more social value. Christ Stephenson, general manager of global marketing for Zune, said that “consumers want more than the traditional transactional model of an online music store plus portable device.” Instead, he said, they want a “new experience centered on music discovery,” which helps expose them to music they may not have tried and offers a variety of ways to buy.

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According to a recent study commissioned by Microsoft, more than half of consumers said they didn’t have enough time or didn’t know where to look to find new music and, as a consequence, ended up wasting money on music they didn’t really like. But 89 percent said they would trust a recommendation by a friend or a family member. Read the full story

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SAN FRANCISCO (AFP) - Microsoft began making television shows available for viewing on its Zune MP3 players on Tuesday as it continues a campaign to wrest market share from Apple’s globally popular iPods.

Microsoft started releasing a software update that makes television shows available for viewing on the devices for the first time and enables users to more easily share their tastes in music.

Previously only music and music videos were available for the devices.

Offerings at Microsoft’s online Zune Marketplace will include downloads of television shows from Comedy Central, MTV, Nickelodeon, NBC Universal and other entertainment networks for 1.99 dollars per episode.

The NBC programs represent a coup for Microsoft since the major studio pulled its shows from Apple’s online iTunes store because they wanted higher prices to be charged for downloads to iPods.

“Partnering with Zune will allow us to develop innovative content offerings for their customers, including flexible pricing and packaging options beginning this fall,” said NBC Universal digital distribution president JB Perrette.

“NBC Universal is excited to offer our hit television shows to Zune customers.”

Microsoft is also introducing a “Zune Pass” subscription that lets people access the online store’s entire music catalogue for monthly fees of 14.95 dollars.

The software update is also crafted to enhance the social aspects of the online “Zune Social” community by letting members easily send messages to one another and share their musical preferences and discoveries.

“Zune owners are pretty passionate,” said Zune group marketing manager Brian Seitz. “And I definitely fall into that category myself — the main reason we’re all here is we love the music.”

Microsoft reports having sold more than two million Zunes since the devices hit the market in November 2006.

Apple sells more iPods than that in a typical quarter and has sold more than 150 million of the culture-altering devices since they were launched in late 2001.

Apple’s iTunes stores began selling television shows for download to iPods two years ago and also sells and rents movies for viewing on the devices.

source from tech.yahoo.com

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Microsoft (NSDQ: MSFT), which trails far behind Apple in the portable media player market, tried to narrow the gap Tuesday with the release of new technology that enables Zune users to share more of their music libraries with friends.The latest update to the Zune software that synchronizes the player with a person’s music library on the PC and Microsoft’s online store reflects how Microsoft is hoping to grab market share from the Apple iPod by encouraging Zune users to build online social networks. Microsoft last November launched a music community Web site called Zune Social, where users could browse each other’s playlists and share opinions on songs and bands.

The upgrade takes the community element a bit further by letting Zune users download each other’s nine most recently played songs, as well as nine tunes flagged as favorites. The playlists are updated each time a person connects their Zune to the PC.

In order for people to trade tunes, they have to subscribe to Microsoft’s mobile music service called Zune Pass. The service costs $14.99 a month and lets subscribers download onto their Zunes any of the 3.5 million songs in Microsoft’s library.

Only time will tell whether Microsoft’s strategy will gain ground against Apple. Up until now, however, the Zune, which Microsoft launched in late 2006, has failed to make a dent. In the first quarter, Apple accounted for 71% of the portable music player market in the U.S., while Microsoft had only 4%, according to The NPD Group.

In other Zune news, Microsoft on Tuesday added television shows from Comedy Central, NBC Universal, Turner Broadcasting, and others to the Zune online store. Microsoft added a total of 800 episodes, including those from the popular South Park and Heroes programs. Each show costs $1.99 each.

Nevertheless, Microsoft’s offerings fall far short of Apple’s. The latter company’s iTunes store offers thousands of episodes from 600 shows.

source form informationweek.com

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