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For six years, the Internet Nexus served as my technology blog, but I've since started blogging at the SuperSite Blog instead. If you're looking for the blog, please head there. --Paul

Thursday, July 29, 2004

Apple's real problem

CNN Money: "Refusing to license its FairPlay system has cost Apple control. That may be a good thing ... Apple intended the iPod and iTunes to be a closed system, allowing no other company to sell iPod-compatible downloads ... To create Harmony, Real reverse-engineered Apple's proprietary AAC format, and created a way for Real's downloads to appear in AAC format when loaded onto an iPod. Industrious hackers have attempted such a feat but have been spooked by legal threats. Apple may yet decide to challenge Harmony in court, but it should carefully think through the consequences: Harmony may actually prove beneficial to Apple and the industry as a whole. As for Real, it gets some great press and momentum heading into the fall, when Microsoft is expected to launch its long-rumored digital-music offering. 'They need [an answer] that doesn't sound anti-consumer and yet preserves the system they've built for themselves,' Bernoff says. 'I can't think of a response that satisfies both of those requirements.' I don't know the answer either. But I do know that in most cases -- especially when it comes to consumer electronics -- open standards and consumer choice usually win. Giving consumers the ability to choose which store they want to purchase music from instead of locking them into one store is sound policy."

Yep, it sure is. And Apple should embrace, not dispute, Real's efforts. Apple doesn't make any money from its Music Store anyway. If Apple wants to sell more iPods, and support its customers, making peace with Real is the way to go.

[ Posted at 11:24 AM | Permalink ]