Why Apple isn’t rushing to license Fairplay, and isn’t listening to Eeyore
Over at BusinessWeek, Alex Salkever writes about how Microsoft’s new “Plays For Sure” campaign (for digital players) could threaten Apple’s iPod supremacy: Many computer-industry analysts believe Apple made a fatal error when it decided not to license its proprietary Macintosh operating system to other computer makers. Apple wanted to own the whole chain — including software and hardware. Microsoft focused on the software alone, believing the more licensees, the merrier.
“Plays For Sure”. Hm, I wonder how long it’ll take people to mock up a “Sure Doesn’t Play On My iPod” logo.
Anyway, as has been pointed out by John Gruber, even if that’s true, it’s not necessarily the same now as then. For one thing, iPods work with Windows machines - which take rather more than 50% of iPod sales.
For another, had Apple licensed the MacOS, it would have been technology roadkill to Microsoft. The cloners nearly killed Apple off in the late 90s, until Jobs, returning, killed them (ignoring the contracts that said he couldn’t). Microsoft had the advantage that it was making the OS to go with IBM-compatible PCs, and corporations bought IBM-compatible PCs, and corporations buy a lot more PCs than consumers. The iPod is not - can you dig this? - a corporate product. This is a different game.
However considerations like this don’t stop Eeyore from saying the same thing he has for ages: Apple should license FairPlay. Open it up. Etc. To Salkever’s piece (which actually contains, like, figures and arguments) he says “Huh. Sounds like something I would have suggested. You know, several months ago.”
Sure, Paul, which is why Apple hires you for the big bucks to advise on its DRM licensing policy. What’s that you say? They don’t? You’re a hack like the rest of us? Well, bin your tedious soapbox then, unless you can line up some arguments for why it would help. Seriously, this sort of continual whining has only two endpoints: Apple does license, in which case Eeyore says “Told you so”, or it doesn’t, and the market changes significantly, in which case he says “They should have”.
But for the Apple execs, it’s a really subtle decision. Your company alone has 70 per cent of the download market. You’d surely like to get into the subscription market (despite having dissed it publicly). You have a huge share of the MP3 player market. When, precisely, is the right time to license? Let your rivals license all they like while they’re small. But in the question of making money from technology, timing is everything. Hold on too long and you might win all. Or not. There are no rule books in this, and the past is not a good guide either.
BTW, I respect Salkever - I think his article about how Apple should do iPhoto on Windows will come true very shortly. Meanwhile, an exercise for the reader: read the Salkever article referenced at the top of this post and replace “Apple” with “Microsoft” throughout. Realise how often you find yourself saying “Yeah, but who’s going to break its market dominance?” Then realise Microsoft doesn’t have market dominance back in this particular niche. Ponder.
- These posts might be related (the database thinks..):
- Steve Wildstrom gets it wrong - unusually - on the iPod vs WMA (9 November 2004; score: 79.82%)
- Twitter is down. Gmail isn't working. At this rate.. (18 November 2008; score: 57.28%)
- How to be consistently wrong: think like Paul Thurrott on topics like DRM (28 February 2007; score: 56.09%)



