Microsoft sees Zune effort a long haul

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Barriers to Entry

A barrier to entry is a term used in the antitrust case to describe
a monopoly preventing emergant competition. This is not the
case with iPod. Beacuse Apple is successful has nothing to do
with monopoly maintenance (the illegal aspect of monopoly).
Monopoly requires proof of consumer harm and there has been
none in this case. The proof that there is no barrier to entry with
mp3s, is the dearth of competition. The Zune move is further
proof that "entry" is not barred. All players additionally compete
with peer to peer.

Apple has succeeded in this space by gleaning the advantages
oof vertical integration. Microsoft has finally "got it" and now
presumes to do the same. The broad licensing that Microsoft
had extended to it's hardware partners was the problem. It
prevented true diversity and competition where it counts. In the
codec, and in the integration. Consumers responded.

Now, after marginalizing the Windows ecosystem players, and
allowing Apple's ascendency, Microsoft has in fact raised the
barrier to entry by raising the cost and commitment required to
compete.

To characterize Apples success as purely "cool" is dismissive. It's
a slap to the technological and design refinements that have
pushed the entire sector to produce better products.

Yes in answer to your question, AAC is open, only FairPlay is
currently closed, and this could be as much a consequence of
the RIAA as Apple. Micrrosoft will have to make the same deal
with this devil.

These essential misunderstandings around what constitutes
monopoly is at the core of some irrational fears around Apple.
This company is arguing stridently on behalf of stable pricing in
the face of a powerful and entrenched industry with a history of
gouging. These are not the hallmarks of consumer harm.

regards

Posted by: Harry Bardal   Posted on: 07/28/06 You are currently: a Guest | Members login | Terms of Use

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