Saving Microsoft: Zune Video

Music wont be enough to push Microsoft to the top, you need a offering that delivers 'Video' in all it's forms - Music Video, TV, Films.

For the most part Microsoft has made a good start on this already with the XBOX movie downloads but they do need to go further. I'd point Microsoft in the direction of services like LOVEFiLM. I think a movie subscription model firstly on XBOX and then rolled out to the 'Zune Network' would be a winner.

It would work by being able to download a number of movies a month (same price for both HD and SD) for a set subscription. I think LOVEFiLM have the right price point also, working out at £1.90 a film. The best bit about the Zune service though would be no traditional logistics, meaning you could pick and choose exactly what film to watch and when. Combine that with being able to watch that same movie on XBOX, PC (via Zune Store) and on Zune OS devices and it's a winning formula with more to offer than both LOVEFiLM and iTunes.

The next longer term step would be for Microsoft to move their IPTV platform on a stage and actually setup an IPTV service - "Zune TV". Again make it open, make the code open and free to use by manufacturers of set top boxes, Internet aware TVs etc. Do this and you could see a wave of devices support the service. The long term view for Microsoft shouldn't be hardware, let the hardware manufacturers take the one of profits for that, Microsoft view should be the long term profits form the advertising on the service itself. Be generous and offer shares, for free, tot he major content providers around the world. Get their buy in, they provide the content, Microsoft provide the infrastructure. Again make this service available across the Zune Platform. Zune IPTV should be available on XBOX, PC and Zune OS (as well as those boxes other manufacturers choose to build).

The key to success is bringing all these services through one (perceived) delivery channel and giving the content providers and product manufacturers the freedom to maneuver! The value to customers would go well beyond anything that Apple / Google / Sony are currently providing and what is better is that Microsoft are probably one of the few companies in a position to make it happen!