The iPod appears unstoppable. The first iPod debuted in October of 2001, and Apple never looked back. In the short five years since, Apple created and then captured the market for MP3 players. Although rivals do exist, these competing manufacturers are trailing behind, with most of them possessing less than 5 percent of the market share, while the iPod controls nearly three-quarters.

But the iPod isn’t simply a business success story. It is a cultural phenomenon, and the telltale sign of slender white wires running out of someone’s ears has reached a level where most would classify it as more of a status symbol than a music-playing preference.

Following the release of a video-enabled iPod last year and the announcement of the newer, more sophisticated iPod Nanos late last month, it would seem as though the iPod’s dominance would continue for years to come.

Enter the “Zune.” Labeled by many as Microsoft’s “iPod killer,” the Zune is poised to seize a portion of Apple’s market share and, as Microsoft’s executives are surely hoping, someday surpass it.

Some would label this a futile effort. After all, the iPod does many things well—it plays music and has an easy-to-use interface and iTunes connectability—so there would seem to be few reasons for consumers to purchase a different device. But instead of trying to beat Apple at its own game, the Zune will focus on adding new functionality and providing tools completely new to the MP3 market.

The most noteworthy of these additions is Zune’s wireless networking capability. Not only will wireless connectivity enable the player to update your library without hooking a cable to your computer, but it will also allow you to connect to Wi-Fi hotspots, downloading new entertainment while you sip your morning coffee.

Far more innovative uses of the wireless technology come in the area of player-to-player interactions. Zune users in close enough proximity will be able to trade songs to one another. Traded songs will be playable for three days until the user is prompted to either purchase the file or remove it. Aspiring musical artists will even be able to trade their self-created songs and receive profits if other uses decide to purchase and keep the music.

These features are new and exciting, to be sure, but only to the right audience. After all, how many casual listeners get hot and bothered over the words “802.11 wireless networking?” This is where Zune’s single most intriguing concept comes into play.

Sony ran a series of commercials a few years back where a wandering traveler approached a beach full of people dancing, but there was no music. The traveler had no idea what was going on until someone handed him a pair of headphones. After putting on the headphones, the traveler realized that everyone was listening to the music individually, but dancing collectively. With Zune, that fantasy will become a reality.

Referred to by some as “ad hoc DJ,” Zunes in wireless range should be able to designate one player as a broadcaster, with everyone else tuned in to what the broadcaster is playing. Imagine impromptu dance parties absolutely anywhere on campus, only without the conversation-destroying speakers. Want to talk to someone? Simply turn down your individual volume while everyone else stays locked into the music.

But Microsoft certainly is not putting all their eggs in the wireless basket. By including a built-in FM tuner, 30-gigabyte hard drive, customizable backgrounds and a 3-inch screen (compared to the iPod’s 2.5 inches), Microsoft has shown they are not messing around.

The Zune is scheduled to hit retailers on Nov. 14 for $249.99. Although it is packed with functionality, it remains to be seen whether consumers will ignore all the technical enhancements. After all, in many consumers’ minds, the iPod is the embodiment of “cool.” Either way, Microsoft is optimistic, and the battle for MP3 dominance begins this month.

Sources:
http://money.cnn.com/2006/03/29/technology/apple_anniversary/?cnn=yes
http://en.wikipedia.org/wiki/Microsoft_Zune