Microsoft Seeking Zune-Exclusive Content

August 11, 2008 | by Geoff Duncan

Microsoft is looking to raise the profile of its Zune media players with exclusive content deals - particularly content that can leverage its social features.

When Microsoft introduced its Zune media players back in 2006, some hailed then as an "iPod killer," believing Apple's seeming stranglehold on the portable media player market would be broken now that a heavyweight like Microsoft had, finally, decided to enter the fray.

The iPod is still going strong, and despite a product refresh a year later, the Zune line hasn't exactly been racking up serious sales compared to the iPod—Microsoft has sold about 2 million Zunes since launch, while Apple moves well over 3 million iPods a month. Microsoft has persistently denied rumors that Microsoft would follow Apple's lead with the iPhone and produce some sort of Zune phone, but has otherwise gone nearly silent on the future of the Zune, leaving industry watchers to wonder just what Microsoft planned to do with the Zune platform.

Now, the Hollywood Reporter and other sources report that Microsoft has been hitting production companies and agencies in hopes of securing exclusive digital video content exclusively for the Zune. Although Microsoft execs would love to have hot content that was Zune only, reports indicate they're also open to deals in which content would debut on the Zune before becoming available in other channels. However, Microsoft is keenest on projects that could leverage the Zune's somewhat infamously under-used "social" features. Microsoft is reportedly looking to the Zune as a way to make video "consumption" more of a communal, social experience, much as the company's Halo franchise turned first-person shooter from a solitary activity to a network-based social event for many gamers.

Whether Microsoft can pull it off remains to be seen: with only two million Zunes in the wild, the Zune tagline "welcome to the social" is more like "welcome to the wasteland" for many Zune users, some of whom have reported never encountering another Zune with which they can use social networking features.

Post Your Comment...Comments

Matt on Aug 11th, 2008 at 11:17 AM:

If Microsoft made a few tweaks to the Zune, broadened the store and made it less XBOX'ish, and lastly, changed the name they would sell more units. When I hear Zune, I'm already unsold.

Synthmeister on Aug 12th, 2008 at 1:51 PM:

MicroSoft needs to take some very basic steps here:
1. WiFiâ—MS was the first to make WiFi available on an MP3 player and then they found no compelling use for it except to suck the battery dry.
Give the Zune e-mail, internet, AIM, ActiveSync for Outlook, etc. etc.
2. Lose the DRM and jump on the bandwagon with AOL. Loudly proclaim your ability to play any and all DRM-free music and the total absence of DRM-music on the Zune store. Loudly proclaim that people will never have to worry about losing their DRM keys.
3. Points? POINTS! This has got to be the STUPIDEST idea ever in the history of the world. Lose the points system NOW!
4. Start using AAC and loudly proclaim your allegiance to open standards, then cut a deal with some of the majors to produce 5.1 surround mixes of some of the classic albums.
5. Optical digital output on the ZuneDock or whatever it's called to play back the 5.1 surround mixes and movies.
6. Online purchase of music
7. Copy the iPhone developer program, app store, 70%/30% split.

Of course these points beg two questions: Is the Zune software anywhere near up to snuff to accomplish any of this stuff? And can MS find anyone with hardware chops to make it work. Remember, the original Zune was just a warmed-over Toshiba Gigabeat.

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