To summarise, I think the Zune brand delivering all the services i have suggested would mean Microsoft find themselves in every home in the country. It about delivering content in a variety of ways convenient to the user at a (and this is important) price point the user perceives to be value.
I think Microsoft have the resources, talent and negotiating power to make this happen. They just need to remember they need 'Partners' to do this not minions. Be open, be fair and you'll get the content providers on side, you'll get the manufacturers on side and most importantly - The Public!
Saving Microsoft: The Zune Network Vision
Saving Microsoft: Zune OS
I think it's fair to say that Windows Mobile has a huge fight on its hand from new comers like iPhone and Android and I dare say a major factor in this is the name "Windows Mobile". IT desperately needs to be rebranded with something funky, catchy and all together more appealing.
I'm Proposing "Zune OS". Zune OS should be a platform (like WM) for device manufacturers to build their hardware round. The manufacturers provide the hardware selling points - 10MP camera, GPRS, WI-FI etch and Microsoft supports the hardware. But Microsoft provides the software selling points - such as the Zune network. Access to Music, streaming Music, TV on Demand, streamed TV (IPTV) and movies all on the go (depending on the carrier of course). All of this backup by compatibility with your PC and XBOX - and maybe with DLNA compliance, your TV and photoframes etc.
It of course ties in with the 'Zune Store' not only for buying music / video, but applications and tie in with XBOX Live for games. Perhaps games bought on Live can then be made available to Zune OS devices.
If you combine these media selling point with services like Microsoft's Mesh, Mail, Messenger and Sky Drive services it's got to be a winner.
Again, I'd suggest making the software open. Not necessarily open source but open. Make the software free to manufactures and look long term at revenue streams from the additional services. With all this extra media access, it's a selling point for both the phone company and the phone maker.
*All* you have to do is bring all of this together in a slick interface and you've got it sewn up
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!
Saving Microsoft: Zune Music
Firstly, it's important to say that none of these things will work purely on their own. Microsoft needs to bring all these services under the Zune banner as quickly as possible. The service itself will not be a unique idea or selling point, but the delivery and availability maybe!
The first step is creating the 'Zune Store'. Like iTunes it should sell Music, Movies and Games and the music streaming service should be integrated here also. Music bought should be DRM free MP3s and available to the entire Zune Family (and other MP3 compatible devices), by that i mean the music should download to the Zune store on your PC which can then be loaded onto your 'Zune OS' (more on that later) device and also pushed out to a Zune Entertainment Device such as the XBOX. Conversely, music bought on the XBOX or Zune OS device from the service should then be pushed down to an iTunes style 'Authorised PC'.
This is what Apple have done with iTunes and the iPod, they've made a service that is closely integrated and works. Microsoft would have the upper hand by saying that my Zune isn't the only place i want to view my content lets make it easy to get it elsewhere and make an integrated service that not only includes a Zune or Zune OS phone but links with the box under many people TVs - the XBOX. This is a fairly obvious way of getting people to use the Zune service rather than iTunes because it makes your content more widely available and on that note Microsoft could go one step further still.
DLNA is a set of standards which mean media devices are able to talk to each other. The Zune store should be fully DLNA compatible. This has two effects, the first is that it can push the Zune brand by proxy by signing distribution deals with 'Media Streamng' devices such as Philips Streamium range i.e. When you buy a Streamium it comes with the Zune Store software, the user installs it and the Zune Store software acts like a media server pushing out Music, Films and Pictures to DLNA compatible receivers. The second effect is one for the Microsoft brand image. By adopting an open stance and saying anyone who wants to can connect to our software (for free) can do so, you are endearing the consumer to you, why? Well it provides the consumer with more choice and more importantly they don't feel like they are being locked into a particular brand or technology road map, ironically this makes them more loyal and more likely to stick to one road map!
At the moment there is no 'Media Server' leading the market out right. Combine all the factors above and the Micrsoft Zune Store / Media Server software could become the defacto choice. If you can make the Zune software useful for more than loading an MP3 player with content then people may start to look at the Zune Media player because it has similar features to the iPod but fits more easily into the consumers media consumption.
My Plan to Save Microsoft
Okay, okay maybe Microsoft doesn't actually need saving just yet! Its still making massive profits and remains the market leader in many industries, but it is seeing attacks from all sides in the form of iPhone and iTunes, Wii, Playstation and Googles Chrome OS.
Increasingly Microsoft is seeing its position pushed from first to second, and in some cases even further down the scale. But they've missed a trick and I think i know how Microsoft could get back on form in the entertainment section - Bizarrely, it's going to require making a failing product the focus of it's attentions.
For a company with a large presence in the 'Entertainment Market' Microsoft has done a very poor job of unifying there product lines under one 'Cool' banner, one brand that consumers can identify with. That brand should be 'Zune'!
Microsoft are doing this a little already by relaunching the video market place on XBOX as the Zune market place but it does really go far enough and in my next few posts I'll set down my steps to world dominance.
