OzHub, the Macquarie Telecom-led cloud computing alliance, has come down firmly on the side of Optus over the copyright controversy surrounding Optus TV Now, warning that any moves to change the law "risk branding Australia a global luddite state."
A reader pointed me to a blog on a competitor's site which discussed the restrictions imposed by Verizon Wireless' use of Microsoft's Windows Media digital rights management (WM-DRM) technology in its new LG Chocolate phone.
The WM-DRM restrictions are similar but not quite so stringent as the
restrictions imposed by Apple's FairPlay DRM system used to confine the
distribution of iTunes downloads.
For instance, WM-DRM as imposed by Verizon allows users to make up to 5
CD copies of a track as opposed to 3 CD copies for iTunes tracks. The
Verizon system also allows users to transfer tracks downloaded to PC to
three portable music players that support WM-DRM.
So are we seeing the Macintosh versus DOS/Windows PC battle taking place all over again on the consumer entertainment stage?
In many ways iPod is a very similar product to the Macintosh, albeit at
a much lower price point in the market and with more broad based
consumer appeal. Users of iPod and Macintosh have the same sort of
passion and pride in their product and have no problem with the product
being a closed proprietary system and a little more expensive. As far
as they're concerned, their product is simply the best.
On the other hand, WM-DRM is an open proprietary platform that can be
licensed by anyone with a compatible device, such as an MP3 player or
mobile phone.
The question that needs to be asked now is how does Microsoft's
upcoming portable music player Zune fit into the picture? Obviously,
Zune will use the WM-DRM platform and will be able to play tracks
downloaded from Microsoft's music store whatever that may be, as well
as tracks from other WM-DRM compatible players. One would expect,
therefore, that tracks downloaded to Zune would be transferrable to a
designated number of other WM-DRM compatible players.
If the above is the case, Microsoft would be creating a digital media
ecosystem based on its own DRM platform in much the same way that it
created the DOS/Windows compatible PC ecosystem.
Such a strategy could pose a far bigger threat to iPod dominance than a Zune music player copying the closed iPod model.
Microsoft could well be stepping into the music player market with Zune
in order to help drive the widespread acceptance of WM-DRM. As a
software company, Microsoft does not need to make big money from the
Zune hardware but if it can drive the market for WM-DRM compatible
devices and help to make WM-DRM a defacto standard like Windows, then
it will have created a business with enormous profit potential.
The response of Apple to all this will be interesting. Back in the
1980s, Apple was presented with an enormous opportunity to compete with
Microsoft head to head with a far superior product. Instead Apple kept
its system closed and saw its market share dwindle until it became a
marginal player. Could history repeat itself or will Apple learn from
its past mistakes?
David Frost
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