Digital Marketing Specialist, Social Media Consultant,
and Tech Geek at Heart

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Branding and People’s Desires to Avoid It

November 15, 2006

Zune LogoWith yesterday being the Microsoft Zune official release and the fact that people are adamant about getting a Zune over all other such products out there, I’ve begun questioning how and why people choose to support certain brands.

From recent Hitwise data, Google accounts for over 60% of search. Why doesn’t Google have more than 60% or closer to 70% or even 100%? Is it because the other approximately 40% believe that their search engine of choice is superior (which could very well be the case)? Do they hate the Google ads and not want to see them? Do the others simply not know about Google? Do they dislike monopolies? Or do these individuals in the minority simply not want to support the Google brand on principle?

Consider the hype surrounded by Microsoft (which I noticed was most prevalent in the Windows 98 era). EveryoneMicrosoft Windows Logo chanted “Microsoft sucks,” though everyone continued buying Microsoft products and we saw no shortage or significant shifts that evidenced a market shift to something “superior.” Why is this so? Microsoft is what was easiest for everyone. Windows was what worked. Windows had more compatible applications, whereas other competing operating systems (MacOS, Linux) simply did not. Microsoft was the winning brand, but we still saw people, albeit in small numbers, change course.

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Should Universal be Entitled to Zune profits?

November 9, 2006

On November 14th, the Microsoft Zune, a wireless portable media player, will be available for sale. The hype in anticipation of the Zune has been pretty darn big, and apparently other companies (read: Universal, the world’s largest music company) are looking to cash in.

Microsoft announced yesterday that it would be giving over $1 per each Zune sold to Universal. That’s $1 per a piece of hardware that Universal had no involvement in producing. However, the agreement reached means that Universal will now be licensing its music in the Microsoft Zune store, which leaves the status of iTunes to be determined.

Microsoft’s agreement to pay Universal per Zune unit sets off a heat wave and puts a lot of pressure on Apple to do the same (Apple currently pays off a portion of royalties per iTunes sales and does not compensate anyone for the sales of its iPods). Universal has one year left of its licensing agreement with the iTunes store, and who knows what kinds of negotiations will be made once the Zune precedence is set. Apple is Microsoft’s biggest competitor in the portable music market, so Microsoft played the pretty devious card when agreeing to this deal.

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