You're right on all points. It should also be noted that the record industry thinking (beyond greed) makes no sense - by that rational, if I buy gas for the car, everytime I pump gas, a % should go to car manufacturer?
The main difference as you point out is that Apple can cut them off to 90 million ipod users (by negotiations time) while MS's audience might be 2 million or less. And ironically, Apple can even argue that since a low/lower % of people obtain their music via itunes store - it hurts them more to cut of digital sales than it does Apple. For them, it's real revenue, for Apple, it's just inconvenience ... and of course, who's going to win the PR war - Apple or greedy record labels? Plus, in 6 months, Zune will probably be floundering and listing so much if the record labels bring it up - Apple will just smirk.
Plus, with itv and movies & tv - the record labels who are aligned with movie & TV studios will not want to annoy Apple.
But you're right - this was MS' last desperate attempt to capture any part of the consumer market for anything - so far, they are about zero for 11. Plus, they'll be busy scrambling when PS3 & Wii in 6 months outsells 360 after a year headstart of a year.
How true is this so-called deal?
RDM's Mythbusting of Zune Hype:
10 iPod vs Zune Myths
10 More Myths of Zune
10 Ways Microsoft can Salvage their iPod Killer
Why Microsoft Can't Compete With iTunes
Hate to say this but I wouldn't put anything past M$. You can't say the Zune wont make it because it started out crap..that's how all MS products (DB, Email, IM, etc) start out and then half stay that way (Windows OS, IIS, MediaPlayer, etc) and still manage to take market share (btw didn't bother mentioning IE..opps just did). I even think the XBox is an example of how well MS can just change markets like no1 else. Just gotta keep people educated, even to the point of being political about it.
Commenting by HaloScan
