Can Microsoft win the media format war?
Published: 04 Feb 2003 17:05 GMT
"We've definitely seen a movement to taking CDs and trying to protect them," said Michael Aldridge, lead product manager of the Windows Media division. But there have been mixed results trying to do that. We wanted to come up with a mechanism to address this, hopefully, in a very compelling way."
Microsoft believes the second session will appeal to consumers because it "resurrects the kind of rich experience you used to get with albums, where when you opened up the album you had really cool liner notes, lyrics and photographs of the artists," Aldridge said. At the same time, labels can use the DRM to control how the songs are copied, whether to a CD, DVD or portable music player.
Record labels have applauded Microsoft's move for several reasons. While the entertainment companies have tried to avoid relying on the software giant as a sole technology vendor, they like the omnipresence of the Windows Media technology and the strength of its rights management system. And unlike the haphazard digital add-ons to CDs of the past, the Windows Media files are likely to be supported well into the future.
"That was one thing we needed, to make sure: that 10 years from now, you stick the CD in a machine and it plays," said Ted Cohen, vice president for new media at EMI Recorded Music.
Still, Microsoft's approach greatly favors Windows. Accessing the content "would require a PC and support for Windows Media on the PC itself," Aldridge said.
For now, Microsoft only provides a toolkit supporting Windows, although Aldridge says a Macintosh version is forthcoming. For now, record labels would have to distribute over the Web a downloadable license that would let Mac users play second-session content created using the toolkits. No option is available for other operating systems, such as Linux.
This kind of favouritism is likely to make record labels extremely cautious about using Microsoft's DRM, regardless of the technology's attractiveness or the free use, say analysts.
"On the PC, they're trying to lock in favouritism for the Windows platform," said The Yankee Group's Jones. "Their plan kind of shows through, and that will put the content owners on alert."
At the same time, labels are concerned that should Microsoft's file formats come to dominate digital media, what's free today could cost plenty in the future. In other markets, Microsoft significantly jacked up the costs once it dominated a technology or market segment. A good example is Microsoft's Licensing 6 program, which aised fees for obtaining Windows and Office licenses as much as 107 percent, according to Gartner.
"You have the possibility that all your digital content protection is on their platform and they start charging for it," Jones said. "There's this template of how Microsoft can spread its influence and then capitalise on it after being patient. It's really Microsoft's patience that's going to surprise content providers at the end of the day, as it has enterprises."
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