Microsoft Takes Page From Satellite Radio Playbook

November 3, 2006

In what can only be seen as a compliment, Microsoft has take a page from the playbook of Sirius and XM in an effort to pry I-pods out of consumers. Microsoft has made a concerted effort to have an impact on the "Indie Music" world. This is something that both XM and Sirius have catered to for quite some time in the form of channels, and shows dedicated to the independent artist.

Indie fans love satellite radio because it offers a far broader access to this "fringe" music than traditional content challenged radio, and unlike an I-Pod, Indie songs and artists get live play. Apple still sells well with the Indie crowd, but there is something very compelling about having a "RADIO STATION" (Sirius or XM) play your song live on the air. Microsoft is hoping that Indie Music fans will gravitate towards its Zune player, but competition from Apple and satellite radio may prove to be very stiff.

In an article today by Dina Bass of Bloomberg.com, she discusses the Indie Music culture and why Microsoft want to be part of the "In" crowd.

ARTICLE EXCERPT

Microsoft Courts `Indie' Music Fans to Crack IPod's Dominance
By Dina Bass
Nov. 3 (Bloomberg) --

Not long after Microsoft Corp. announced in July that it would challenge Apple Computer Inc.'s iPod, Internet blogger Craig Lile found himself on a flight to Seattle to get a first look at the competing device.

Lile, 29, who writes under the pen name Dodge, was one of six tastemakers from the independent-music scene hand-picked by Microsoft -- and given free air fare and hotel -- to check out its Zune player, which goes on sale Nov. 14.

Microsoft says it can crack iPod's monopoly on ``cool'' by harnessing key Web reviewers like Lile and sponsoring band tours to court fans of so-called indie music. Emerging fringe bands on independent labels can sway the larger market, Microsoft says. With Apple controlling 77 percent of the $4 billion U.S. market for digital-player sales, gaining converts may be difficult. Lile's own conclusion about Zune won't make it any easier.

``It's really not anything that impressive,'' said Lile, an Indianapolis-based Web developer who writes My Old Kentucky Blog. ``They're going to do terribly, at least in the demographic that cares about indie music. Apple is so entrenched in the indie music community.''.......

Interested SSG readers can get the whole Bloomberg story HERE

11/03/2006 10:15:00 AM

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