HP to Launch Music Service, Player In 2004

securitas writes "HPShopping.com CEO Peter Appl told Reuters that HP will launch its own branded online music service and a portable MP3 / digital music player in 2004. Appl (the CEO) said that the newcomers would compete with Apple (the company's) music products such as the iTunes music store and iPod music player, among others. HP expects its store to be a branded version of an existing service. Appl also said that the launch will take place at the 2004 Consumer Electronics Show (CES) in January. Compaq sold its own line of digital music players, now discontinued, before its merger with HP. Mirrors of the Reuters story at CNN and Boston.com. A quick check shows that HPMusic.com resolves to an 'HP customer care local language selection' technical support page, and the domain has been registered since 1999."

Comments

The only really new thing here...

[rolocroz]

...is that HP's entering the business. They're not creating anything new on their own: instead, they've decided to brand an existing product. Yawn.

Market Saturation

[Philosinfinity]

With half a bajillion companies now offering song downloads at $0.99 and none coming to us without some sort of DRM involved, why would we choose one over another? The Apple iTunes store has had so much success because of (1) the sales success of the ipod and (2) the ease on integration of iTunes and OS X. Now let's turn this into a look at HP. HP's MP3 player (while the MP3 player in question is purely speculative since it has not been released) is probably no different than any other MP3 player and I doubt they could be much better than the Neuros. So this gives us no need to choose the HP music store over any other store. Further, HP hardware is not proprietary in the sense that getting music from the HP store would either be a required method of getting music or the easiest because of a lack of other sources. This seems to tell me one thing: HP's journey into online digital music sales will most likely be short lived.

Re:New Pair of Dimes

[shark72]

"1. The collapse of the RIAA's scare-tactics business model for coercion to expensive copyright, and a change in how people listen and contribute to the music industry."

The RIAA's lawsuits (and by the way, there were more today) are symbiotic with, and not counter to, the growth in the legitimate download services. The RIAA's tactic is to scare people away from downloading copyrighted music without permission. The theory is that with greater awareness that doing so is illegal, and/or a fear of being caught, downloaders will migrate to legitimate sources, like iTMS, Napster, and the metric squillion others that have popped up.

So, "collapse" isn't the best word -- ideally, the need to resort to legal action will eventually evaporate.

"2. The total destruction of all online music sales, as all said businesses compete eachother out of existence."

The online music industry is like any other: some big players, some small players, some smart ones, some not-so-smart. It's been clearly shown that there's growing demand, so the industry will probably be around for some time to come.

What is the expected lifetime of these formats

[nomadicGeek]

I have CD's that are 17 years old. They still work and I have been able to rip all of them and use them in my MP3 player. The beauty of an open format.

DRM sucks. The files only last for as long as you have the software/hardware to play them. What is my guarantee that I will be able to listen to this music in 20 years after I spend the money to license it? Let's face it, at $10/album or $0.99/song it is not as good of a deal as a $16 CD. The data is in a crippled format that is less valuable to me because I may not be able to use it in a few years. If HP or Apple or whoever later decides to stop supporting the format then I am screwed, I can't legally convert the files to another format unless the vendor is nice enough to provide me with an officially sanctioned tool. Do you think they will do that instead of forcing me to buy another copy in a different format?

How am I supposed to keep track of which file came from which vendor and thus needs player X to play?

This could be good news...for Apple

[Nova Express]

Why? Because Apple currently dominates both online music services AND digital music players. The more firms jumping into the fray, the less any single one of Apple's competitors stand out. Moreover, given that Apple's DRM is considerably less heinous than the those of the other firms, that it has better software, and integration with the market-leading MP3 player, it becomes a matter of "I could carefully compare these 7 or 8 other online services, popping up like dot-bomb zombie clones, all of whom have exactly the same price, and try to figure out which is best AND will still be in business five years from now...or I could just go with iTunes as both the cool AND obvious choice." If Apple had two or three strong competitors, it might be different, but seven or eight weak ones just make iTunes look that much more attractive by comparison.

My prediction: The iTunes Music Store will still be going string five years from now, but all but one or two of other digital music stores will be gone.

Re:This is ...

[ischorr]

Cash cow? What are you talking about? The market leader can't even make money, for cripe's sake.

Perhaps it's infinitely more revenue than was being brought in before, but that doesn't mean that it's profitable or a feasible business plan. And they're just going to be reselling someone else's service, which gives them an even smaller piece of revenue to play with...