Microsoft Zune

Zune is a Microsoft brand of portable media players, associated software, and an online service for acquiring and sharing media. Following its launch, Zune was briefly the #2 selling portable media player in the United States. The first Zune device released to the U.S. market was a 30 GB model for $249.99 on November 14, 2006.

Overview

Microsoft's entry into the Media Player market debuted with a strong initial showing, but by the end of its first month of sales Zune had revealed itself to be the underdog to Apple's iPod. Despite being shadowed by iPod's established limelight the Zune offers several new features which arrive integrated with the device.

The first model of the Zune device comes equipped with a 30 GB hard drive, built-in FM tuner with Radio Data System, a 3 inch screen, and Wi-Fi networking. In terms of audio formats, Zune supports MP3, WMA and AAC. Zune supports Microsoft's WMV movie format, and Zune software will transcode MPEG4 and H.264 video to synchronize to the device. Preloaded music, videos, and images ship with the device.

A key differentiator between Zune and competing players is Zune-to-Zune Wi-Fi communication. This allows limited sharing of songs, recordings, playlists and pictures with other Zunes. A track received from another Zune can be played for up to three days or three plays, whichever comes first, after which it expires unless purchased or downloaded via the Zune Marketplace online. Recipients cannot re-send music or audio files that they have received via the sharing feature. Not all songs are eligible for sharing . record companies can flag songs from the Zune Marketplace as "non-distributable".

As part of an effort to build a complete end-to-end ecosystem, Globals Inc., a US incorporated company associated with Microsoft to offer Podcasting service, and Zune uses a new digital rights management system to protect content which is incompatible with other DRM systems including Microsoft PlaysForSure. This ecosystem includes a PC client called the Zune Software and an online store called the Zune Marketplace. Zune does not support audio-books downloaded from Audible.com

The Zune can connect to a Microsoft Xbox 360, giving users the ability to stream music, videos, and pictures via USB. Windows based Zune Software can also stream music, videos, and pictures to Xbox 360 via a home network.

J Allard, who oversaw the creation of the Xbox 360, has also overseen the creation of the Zune.

Features

  • Ability to send photos, and some music files (not all music files may be shared) from Zune-to-Zune via Wi-Fi. Sharable music files can be played only a maximum of three times on the device, and expire after three days whether they are played or not. Recipients cannot re-send music that they have received via the sharing feature. However, this limitation is easily bypassed when sending files renamed as JPGs. Photo files may be shared without restriction.
  • Ability to flag tracks received from Zune-to-Zune transfer, a tool used so that a shared song may be purchased from the Zune Marketplace after it has expired.
  • Ability to play videos and view pictures.
  • Updatable firmware.
  • "ZuneTags", a field changeable username/profile visible to others who wirelessly scan the area for fellow Zune users.
  • The wallpaper on the Zune can be changed to any user-specified image.
  • The Zune will play standard podcast files, which are usually available in unprotected MP3 or AAC format. However, the Zune software lacks full podcast support, such as a directory and automatic downloading via RSS feeds. A Zune team member has stated that in the future "We'll ship podcasting, and we'll call it "Podcasting" when we do."
  • The player software will automatically convert audio and video in a format not supported by the Zune into a format that is. (e.g. a video with a resolution of 720x540 will be converted to a resolution of 320x240 if necessary).
  • Able to show other Zunes nearby what you are listening to or doing through advanced settings.
  • Support for Zune Digital Rights Management (DRM) (incompatible with other DRM schemes).
  • Able to add songs to a quick playlist without reconnecting to the Zune software.
  • Built-in FM radio, capable of showing song information on supported FM stations using RDS

Zune device

The device is available in three colors and features what Microsoft calls the .doubleshot. effect, with a translucent glow in a different color. The colors of mainstream availability are black, brown, and white with a doubleshot of blue, green and clear respectively. A limited-edition red Zune was put up for auction in various stores in L.A. Additionally, pink and orange Zune devices were given to the Zune team as ship gifts with "Welcome to the Social" and "November 14, 2006" written on the back. And finally, an as yet unknown color is being released by December 15th, 2006 to recipients of the Zune Master inductees.

The Zune Software syncs music, pictures and videos to the Zune device. It organizes the media in its library and allows users to add to the library by ripping from CDs, and organize the metadata. It can automatically pull down album art and metadata for all content in the library. The Zune Software is also the interface to access the Zune Marketplace.

The Zune Marketplace is an online service that integrates with the Zune player. It is similar to the MTV URGE service that is available for Windows Media Player 11. Over two million songs are available for purchase using Microsoft Points, the same currency used on Xbox Live, for per-song purchase. The Zune Marketplace can also be used as a subscription-based flat-fee service, if users purchase a monthly "Zune Pass".

Individual tracks (in protected WMA format) currently cost 79 Microsoft Points (at an exchange ratio of 79.8 points per dollar). Users must purchase blocks of points in $5 increments.

The unlimited "Zune Pass" costs US$14.99 per month or $44.97 for three months. However, some selected albums and tracks are not available to the subscription service and can only be purchased with Microsoft Points.

The Zune Software includes an inbox, which keeps track of flagged music (for later purchase) as well as songs swapped with other Zune users. The inbox shows up in the Zune software as well. All music downloaded under the subscription plan becomes unplayable if the user lets the subscription lapse. Songs downloaded under a subscription are not burnable to CD without paying an additional charge per track.

Zune Marketplace content currently appears as normal PlaysForSure DRM to other applications and portables. This allows purchased or subscription content to be played outside of the Zune Ecosystem. However, this functionality is not supported by Microsoft officially and no testing is done to ensure compatibility.

The initial release of the Zune Software supports the following types of files: Windows Media Audio (.wma), MP3 (.mp3), AAC (.mp4,.m4a,.m4b,.mov), JPEG (.jpg), Windows Media Video (.wmv), MPEG4 (.mp4,.m4v,.mov) and H.264 (.mp4,.m4v,.mov). Unlike the Windows Media Player 11 media server, the Zune Software can also stream AAC files to the Xbox 360, which supports AAC natively.

Additional details

The device is a handheld media player similar to the 5th-generation hard drive based video iPods, although slightly larger and heavier. Built by Toshiba, it is a modified version of the Toshiba Gigabeat S with a re-arranged controller layout. The device uses the twist interface on a Freescale 400MHz DSP processor, and contains a Toshiba 1.8 inch 30 GB hard drive.

The device features a five button controller arranged in a circle, which is skeuomorphic of the iPod's iconic design. A menu button and a play/pause button are to the left and right, respectively. However, when the Zune is flipped horizontally the controls remain in the same location, despite a different orientation. A hold switch is featured on the top of the player, next to the headphone port. The entire system casing is made from rubberized plastic.

Accessories

Microsoft has made several first party accessories for the Zune, including the Zune Car Pack, which contains an FM-transmitter with AutoSeek and a Zune Car Charger, the Zune Home A/V pack, which contains a dock, wireless remote, sync cable, AC adapter, and A/V output cable, and the Zune Travel Pack, which includes in-ear earphones, a dual-connect remote, a travel case, a sync cable, and an AC adapter. Each of these accessory packs will sell for $100. Microsoft's accessories are also available for individual purchase. Microsoft is working with other manufacturers like Altec Lansing, Belkin, Griffin Technology, Harman Kardon, JBL, Incipio and more to make additional accessories.

Advertising campaign

According to Brandweek, Microsoft plans a $100 million campaign to promote Zune with "Music the way it wants to be" as a major theme.

Microsoft has enlisted approximately 300 "Zune masters" to advertise the device on American college campuses. They receive free merchandise, including a Zune; in return, they are expected to promote the item and run Zune-related events.

Speculation and rumors

It was previously thought that Zune was one of Microsoft's media players under codename "Project Argo". However, it now seems that the "Zune" brand will be used for all media players and other services, throughout the new project.

It was also thought that, during the time, Microsoft was working on a portable gaming handheld, dubbed, the "Xbox 180" or simply, "Xbox 2.0". However, when word of the product becoming a music player leaked onto the internet, the portable gaming system was debunked.

The European release date is tentatively set for late 2007 or early 2008. There has been no official word on Zune launch outside the US.

Chris Stephenson, general manager of global marketing for the Zune project, has also said in an interview with Engadget that some phone functionality is in store for the Zune at a later date.

Opening sales

The Zune was the second most sold player during the launch week (first four days). Microsoft captured a 9% unit share and a 13% dollar share (total cash spent) in the portable media device space, but still lagged far behind the iPod's 63% and 72.5% respectively. These numbers don't include sales from Apple retail stores (stores which sell only iPod players). However, as MP3 Newswire recorded, the initial release of Zune was met with mostly consumer indifference. Sales weren't terrible, but the heavy marketing failed to launch Zune as a genuine threat to the iPod's dominance. A survey of 40 retailers conducted by Piper Jaffray analyst Gene Munster found only 8% of the sales people recommended Zune compared to 75% recommendation for Apple iPod, and that most of the sales people did not even know what Zune was or who made it.

    In the second week Zune was the 5th most sold player, with a 2.1% market share, according to the market research firm NPD Group. The figures do not include iPods sold directly from Apple.

According to Amazon.com sales charts, currently (December 6, 2006) the position in the market aggressively declined. The most popular Zune model (the black one) is also behind a number of SanDisk, iRiver, Creative, and other manufacturers' devices .

Criticism

  • Numerous industry pundits have criticized the Zune for its features and functions (see below) based on a side-by-side comparison with the iPod. Meanwhile, others have criticized its DRM and the market's potential responses, especially given that it will compete with Microsoft's own early-adopters of the PlaysForSure DRM scheme. Technology reviewer Leo Laporte (of G4techTV (Canada)) said in his November 12 2006 radio show that Zune may be the "beginning of the end" for DRM as a business tactic.

  • Though Zune is a Microsoft product, it is not compatible with players and online music stores using Microsoft's PlaysForSure technology. This includes music purchased from Microsoft's recently retired MSN Music store.

  • The first version of Zune Marketplace is not compatible with Windows Vista, which was made available to developers and volume licensing customers in November 2006. Microsoft has stated that Zune Marketplace will be updated in time for the worldwide release of the new operating system in January 2007.

  • While Zune has built-in Wi-Fi capabilities, it can only connect to other Zune devices; it can't wirelessly sync with its host PC, nor can it wirelessly connect to the internet and download new music via a Wi-Fi hotspot.

  • Songs wirelessly transferred from one Zune to another can only be played three times. After three days, the song expires . regardless of whether or not it has been played. Just playing half the song (or one minute, whichever comes first) counts as one "play." You can never resend a song to the same friend, nor can a song received from someone else be passed on to a third person. These limitations apply to all songs, whether they are copyright free and self-recorded or protected with DRM. Not all songs purchased from the Zune Marketplace can be shared via Wi-Fi with other Zunes (see note 1).

  • The software that supports Zune seems to be very unstable on some Microsoft Windows configurations (including Windows XP). A resolution to this problem has been found.

  • Unlike many hard drive-based music players, Zune cannot officially be used as an external hard drive. However, a hack was found that allows Zune this functionality with slight altering of the Windows registry by the user.

  • Microsoft has entered into a deal with Universal Music Group whereby UMG will receive $1 per Zune sold, paid by Microsoft. UMG.s stance is that digital audio players are "just repositories for stolen music" and hardware manufacturers like Microsoft and Apple Computer should compensate record companies for lost revenue; UMG refused to allow Microsoft to stock their music unless the deal was agreed on. (A similar deal exists for blank audio CD-R manufacturers, who pay fees to the RIAA for every audio CD-R sold in the U.S.)