Dueling Downloads

Only a few short years ago, Napster quickly took root to show the world how Internet-based audio file-trading was where music distribution's future growth might run wild. But the record labels would have none of it and just as swiftly took a legal chainsaw to Napster's trunk, laying it waste and leaving plenty of room for Kazaa and other unsanctioned services to sprout like weeds.

And then Apple and the record labels mutated their own variety of downloading seed and iTunes sprang to life like the proverbial beanstalk in an otherwise dying musical garden. Overnight, the labels' attitudes about the Internet changed, and the race was on to fine-tune the newly blossoming commercial opportunities.

When iTunes was announced last spring, Apple's Steve Jobs promised that the music service would branch out into the Windows world before the end of the year. Since its launch in April, iTunes has reportedly sold over 10 million AAC (Advanced Audio Codec) downloads to Apple Mac and iPod owners, and it appears that this week may see the debut of the long-awaited Windows-compatible version of iTunes.

Apple recently sent out invitations reading, "The year's biggest music story is about to get even bigger," promising big news to be revealed on October 16. ITunes' success is remarkable considering that, until now, it was only available to the relatively small and devoted pool of Mac and iPod users. With the Windows world able to tap into the service, many observers predict that the true worth of iTunes and the popularity of the iPod are about to be tested.

Adding to the drama is news that Napster will officially relaunch on October 29, having been reconfigured around Microsoft's Windows Media 9 Series platform. Microsoft reports that 100 million copies of Windows Media Player 9 Series have been downloaded since its launch in January, "helping ensure broad reach for the Napster 2.0 service."

It's worth noting that the WM9-based Napster is not currently compatible with Apple's computers and the millions of iPods in use, thus setting the stage for what may be audio's most significant format war in years. According to Napster, the new service will initially offer PC users a library of 500,000 songs at 99¢ each or $9.95 per album. The company says that users also have the option—for $9.95/month— to upgrade to Napster's premium service, which offers "unlimited listening and downloading, 40 commercial-free interactive radio stations, and a collection of community features, including the ability to email tracks to friends and share play lists with other Napster users."

Napster says it has also forged a series of partnerships with consumer electronics and computer manufacturers to bundle the service with new products. The first such product, from a partnership with Samsung Electronics which aims to develop a family of portable audio devices preloaded with Napster 2.0, was revealed last week. In addition to traditional portability, Samsung says, the new devices include an FM transmitter to wirelessly play music through car and home stereos.

Napster has also partnered with Microsoft and computer manufacturer Gateway to "allow music fans to experience Napster from the comfort of their couch using a TV and a remote control." Napster will be the featured music service on Microsoft's Windows XP Media Center Edition 2004 later this year, and Gateway promises to emulate Apple's approach with iTunes and Mac computers, shipping Napster pre-installed on every consumer desktop PC it sells, with 150 songs pre-loaded on the hard drives of the new systems.

The battle lines are thus drawn between Apple's iTunes and Napster and its WM9-encoded files. Both formats offer a variety of audio compression options along with comprehensive DRM (Digital Rights Management) tools to keep record labels happy. But while Napster is not currently compatible with the widely-used iPod, Apple will quickly invade Windows territory with its AAC-based iTunes service. The next couple of years should be interesting and may set the course for the future delivery of music to consumers everywhere.

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