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Bill Gates Swears Vow Against 'Son of iPod'

Future Linux-Guru writes "The LA Times is running an article on Microsoft's efforts to preempt any single manufacturer from dominating the online video market. Among the scarier revelations is the development of AACS, a new already approved security system designed to prevent piracy on HD DVDs, which subjects users to forced upgrades." From the article: "Whichever way it shakes out, Gates vows not to play the victim in 'Son of iPod.' After learning a hard lesson in the digital music business, 'we're really having to work more closely with partners in the hardware industry and content industry, to really think through the whole end-to-end experience and make it better,' Gates said. 'That's where we've done our mea culpa. We are fixing that.'"

36 of 393 comments (clear)

  1. Son of iPod? by Da+Fokka · · Score: 4, Funny

    So, what's the son of iPod going to be called?

    e-Sus?

    1. Re: Son of iPod? by Black+Parrot · · Score: 4, Funny


      > So, what's the son of iPod going to be called?

      O'iPod?

      MaciPod?

      Ben iPod?

      iPodson?

      --
      Sheesh, evil *and* a jerk. -- Jade
    2. Re:Son of iPod? by matt21811 · · Score: 5, Insightful

      The iPod equivalent for movies is a laptop.

      The Apple iTunes music store is successful because the iPod is sccuessful. Not the other way around. The fact that the iTMS has a good range and reasonable DRM just ensures repeat custom.

      The only way Bill will lose out in this market is if he fails to get his software loaded on most laptops or he creates a truely crap product even by MS standards. I dont see what all the fuss is about.

    3. Re:Son of iPod? by damsa · · Score: 4, Funny

      Apple likes to use i,power and e as prefixes. So it will either be called powerPod, or ePod. I think ePod as son of the iPod, and PowerPod will be the father of the iPod, and my guess will be //Pod will be the grand father of the ipod. Oh, and the Uncle of the iPod, that no one talks about will be called the LisaPod.

    4. Re:Son of iPod? by ozmanjusri · · Score: 4, Informative

      What would be interesting is something like the iPod for movies, that plugs into an already existant screen.

      Nope, what would be interesting is something like the Mitsubishi Pocket LED DLP Projector http://www.mitsubishi-presentations.com/proj_pocke t.asp with a HDD DivX or similar player built in. Just add Flat White Surface and you're up and running.

      --
      "I've got more toys than Teruhisa Kitahara."
  2. Laughable by sgant · · Score: 5, Insightful

    Microsoft's efforts to preempt any single manufacturer from dominating the online video market.

    I think he means "any OTHER single manufacturer". I'm sure Microsoft will be just find and dandy if THEY were the single dominating online video provider.

    --

    "Leo Fender was in a 'state of grace' when he designed the Stratocaster." -- Paul Reed Smith
    1. Re:Laughable by MaestroSartori · · Score: 4, Interesting

      I don't think MS wan't to be in on the content-provision side, Apple seem to have proven that (for music at least) large profit isn't to be had.

      I think that MS just want to be the sole software technology provider to multiple hardware/content providers, that way they can leverage their desktop OS monopoly to the fullest extent when exacting license fees from several small companies, rather than having a larger corporate entity which could dictate terms to MS.

    2. Re:Laughable by P-Nuts · · Score: 5, Insightful
      I don't think MS wan't to be in on the content-provision side, Apple seem to have proven that (for music at least) large profit isn't to be had.

      Sure, but Apple aren't really in the content-provision business. The reason they have iTMS and iTunes is mainly to encourage people to buy iPods. Just the same as the reason they write MacOS is to sell computers.

  3. Who are Microsoft making their products for ? by Anonymous Coward · · Score: 5, Insightful


    because everyday it seems the "customer" isnt the person who buys the product

    1. Re:Who are Microsoft making their products for ? by amliebsch · · Score: 4, Funny
      Who are Microsoft making their products for ?

      Developers!

      Developers!

      Developers!

      Developers!

      --
      If you don't know where you are going, you will wind up somewhere else.
  4. ... done our mea culpa? by dscho · · Score: 5, Funny

    Not parse this sentence does.

  5. Customers by under_score · · Score: 4, Interesting

    I expect that ultimately customers will decide that DRM and related tech will fail. There will always be new companies and new products that can break into a market that is underperforming for people's needs and wants. Particularly in the age of blogging, this type of breakthrough is getting easier: access to publicity is much much lower. The big companies like MSFT etc. all are probably quite afraid of this... and therefore trying to come up with anti-competitive schemes. Some of these schemes are technology based, some feature based, and some legislative. Only the legislative schemes should be feared. All the others can be fairly easily defeated by consumers. As for the legislated schemes of protection, even those can be circumvented by sufficiently interesting innovation. The problem there is keeping ahead of the legislative encroachment. In the software world, open source is a great way to do this. Hardware-wise it's a bit more difficult.

    1. Re:Customers by Jasin+Natael · · Score: 4, Insightful

      The content providers have got it backward. They're not going to find their panacea with a completely-secure, uncrackable DRM scheme. They're going to start making lots more money when they work out two things:

      1. A pricing plan that can compete.
        This is not trivial. Remember that they're competing with P2P networks and BitTorrent at this point, since they didn't do anything when the technology was younger.
      2. DRM that doesn't fly in the face of consumers' fair use rights.
        If the consumer feels like they're really losing something by buying a paid-for product as opposed to downloading, they will always go for the lower-priced product with greater actual value.

      At this point, it looks like Apple did a good job of balancing all the pro's and con's. It still bothers some consumers who don't have an iPod, or want to use Linux, but they can always buy CD's. Or download MP3's. Whatever DRM model comes up, people will crack it. Some people will circumvent it. Some people will ignore it. The trick is the business model and pricing that convince the consumer to invest.

      Of course, you'll never hear that from Microsoft. If the RIAA and MPAA wisened up to what's really going on, Microsoft wouldn't get a penny from them.

      Jasin Natael
      --
      True science means that when you re-evaluate the evidence, you re-evaluate your faith.
    2. Re:Customers by jonwil · · Score: 4, Interesting

      In order for downloads of video (movies & TV) to be a hit like the iTunes Music Store was, they will need to have the following attributes:
      1.They must either be DVD quality (including all the extras) or they must be cheaper than the equivilant DVD (to make up for the loss of quality)
      2.They must be available at the same time as the DVD release (if not earlier)
      3.They must be in a format (or convertable to a format) that you can record onto something (be it a recordable DVD or a recordable HD-DVD/BluRay disk) and play on your TV setup (be it a home theater system with a big TV or a smaller TV and a simple cheap DVD player)
      I for one dont want to watch movies or TV on my computer, I want to watch on my TV sitting in my comfortable chair.

      Bit Torrent and other P2P services are popular with people because of:
      A.Availability. For those in america, its a great way to get TV shows not playing where you live (including e.g. foriegn TV shows american networks arent playing or shows only on pay TV services you cant get or cant afford)
      And for those abroad, its a great way to get TV shows that just havent reached your country yet (anyone who lives in australia knows how great BitTorrent etc is for downloading all those Yank shows that we just wont see because no local network is prepared to show them or whatever)

      B.Cost. Its very hard to beat free. Even though it is illegal, a lot of people dont care and download anyway (especially since a lot of people believe that just downloading without actually "sharing" anything means they cant get caught and that only the big fish with a large number of shared files are going to be targeted)

      and C.Range. You can get stuff on BitTorrent that just isnt available on DVD (and isnt going to be), things like reality TV and stuff.

      For a download service to work, it would have to come as close as possible to the availability of shows as BitTorrent and other P2P services do (if you cant download it from the download service until 12-18 months after it has aired, people will continue to download from BitTorrent which may well have it 12-18 hours after it first airs). It would also have to have better quality files than what you find on BitTorrent (the files available on the download site for current shows/movies could probobly be produced directly from the same digital master files that are used to produce the over-the-air copies and the DVD masters which means they are as close to perfect as the codec and bitrate used on the files will allow). Also, a download service could offer things DVD cant, including series where the cost to release DVDs is considered too much given likely sales (the cost to make files available on the download service would be cheaper than the cost to make DVDs) and also things like reality TV or sports games which just dont make sense to put on DVD.

      The iTunes Music Store works because:
      1.You are gauranteed to be able to get the song you want (and not a "fake" garbage song file or a song thats not what you want or getting no search results because no-one has the song you want shared)

      2.In a lot of cases, you can preview the song to make sure its what you are looking for before you commit to purchasing it)

      3.Once you have the song, you can put it onto an iPod, an iTunes phone (the new one with ITMS supoprt) or a completly normal no copy protection anywhere audio CD (which can be played on pretty much anything that can read audio CDs)

      And the songs are cheap enough too.

      In short, it has none of the disadvantages of P2P (risk of being caught by the RIAA, lack of sources for the song you want, poor quality rips, fake or garbage song files, songs that arent what the filename claims they are) whilst coming as close to the advantages of P2P (low cost and unrestricted files) as its possible for a legal download service to get.

  6. mea culpa by myukew · · Score: 4, Funny

    obviously bill gates doesn't know that "mea culpa" translates to "my fault" and thus the sentence "we did our mea culpa" is wrong. tztztz

  7. I am your Father by urbanshepherd · · Score: 5, Funny

    Is the son of an iPod an iPea?

  8. Define irony by FidelCatsro · · Score: 5, Funny

    Microsoft Taking a stand against monopolys

    --
    The only things certain in war are Propaganda and Death. You can never be sure which is which though
  9. Bill gates means by Arthur+B. · · Score: 5, Funny

    "we're really having to work more closely with partners in the hardware industry and content industry, to really think through the whole end-to-end experience and make it better"

    work more closely -> control
    think thorugh the whole experience -> control
    make it better -> abuse our vertical dominant position

    --
    \u262D = \u5350
  10. why be concerned? by maxpublic · · Score: 4, Insightful

    Essentially what you have is a collection of the biggest egos in the world trying to collaborate on a single project which will affect the entire movie industry as well as the customers who buy those movies. And the studios in question not only have a history of fighting each other tooth and nail, but of going head-to-head with Microsoft whenever they get the chance.

    Conspiracies between megalomaniacs rarely end well.

    Max

    --
    My god carries a hammer. Your god died nailed to a tree. Any questions?
  11. DRM by dnoyeb · · Score: 5, Insightful

    Well all the current state of DRM on DVD did for the movie industry is allow them to force you to watch a bunch of bullshit trailers for other movies before you can watch the one you purchased. Every time.

  12. Here we go, aiming at our foot again by Nice2Cats · · Score: 4, Insightful
    Among the scarier revelations is the development of AACS, a new already approved security system designed to prevent piracy on HD DVDs, which subjects users to forced upgrades.

    Cute. Hope that works out for you. Guess what system I won't be buying.

    What exactly is the problem with all of these supposedly highly-intelligent but obviously completely brain-dead (not to say stupid) CEOs? If you put annoying copy protection stuff on your media or try to force people to do any other sort of crap like that, they will simply take their money to the black market. This is the lesson of online music. You will not have total control over the media, because the people with the money will not accept that. End of story.

    The only CEO on the planet who seems to understand this is Steve Jobs. Yes, iTunes has various limits, but they are so wide that 95 per cent of the people don't give a damn because they never encounter them: If I want to share music with my kid sister, I can. So what if I can't share it with 200,000 other people on the Internet? This, not any clever usability stuff, is why iTunes has 80 per cent of the market. Just why is this so hard to understand? Is it something that happens to your perception of reality once you earn more than a million dollars a year?

    Oh sorry, I meant a million dollars a month, of course. Though Gates at least gives billions to charity.

    Anyway, this looks like another great idea from the people who brought you the talking paperclip and tried to force-feed us push technology. No wonder Apple is selling computers as fast as they can build them.

    1. Re:Here we go, aiming at our foot again by DeanFox · · Score: 4, Insightful


      Oh sorry, I meant a million dollars a month, of course. Though Gates at least gives billions to charity.

      In a month? From all his investments, interest, dividends, etc. I heard a number once that Bill Gates wakes up 12 million dollars richer then when he went to bed.

      Asked about his wealth he said once you reach a certin level, more money doesn't matter. Things only get so good and once you can afford the best that's it. In other words food only gets so good, cars only get so good, clothes can only be made so good and once you afford the best more money after that doesn't buy you anything better then what you can already afford.

      There are days I've pondered what that would be like.

  13. Apple's success is Gates' failure? by lheal · · Score: 4, Insightful

    Why not just come out and say it, Bill?

    "No one should make money but me!"

    Gates' problem is that he measures success by the stock value of MSFT. I guess that's all he could do, and I don't know him so I don't mean to judge him, but that's where his problem is.

    Ask if your customers are happy, not if your shareholders are.

    Ask how people want their online media, and see if you can make a dime or two selling them software to help. Don't ask how you can keep someone else from getting people their media.

    He seems to get it backwards, every time.

    --
    Raise your children as if you were teaching them to raise your grandchildren, because you are.
  14. An approach that's doomed to failure by @madeus · · Score: 5, Interesting

    I fully expect Microsoft will take the same sort of route they have always taken, by focusing almost exclusively on selling their vision to content producers, rather than focusing on making a product that appeals to the market (and watching as the content producers hop on board).

    Apple have been successful with their music store because of course they have made it easy for novice users to access, purchase and manage content. The Microsoft media player is in stark contrast a hideously confusing application as far as most people are concerned, and is an excellent example of why Microsoft will not succeed unless they radically change their approach (which on past form, I do not expect they will).

    Getting buy-in from publishers is essential in the long run, but by pandering to them to the extent Microsoft have done (in an attempt to get them on-board), all semblance of a marketable product has been lost, because the focus has been on building a product they want to produce, rather than on one people actually want to buy.

    Even if all the major content production companies vow to get behind a Microsoft devised solution, consumers will just largely ignore it and continue to rely on established ways of getting content (either legal DVD's or illegal P2P downloads) until they are offered something they are actually comfortable using.

    You have to wonder what's wrong with Microsoft's corporate structure when, with their vast resources and many talented people, they can't even build a useable media player (let alone content delivery and management system). It's so tragic, it's funny.

  15. in the bedroom by Anonymous Coward · · Score: 5, Insightful

    is where it will fail. Right now i can pipe most things i watch onto the bedroom mini LCD. I dont imagine that an end to end DRM solution will like this much, never mind the video senders etc ppl use. how does this add up to an improved customer experence if i can only watch on approved hardware?

  16. Apple will be at the party too by Macka · · Score: 4, Insightful


    I don't think MS will be able to engineer a position where they are the only technology route to this new type of content. Intel are part of the cadre of vendors working on this, and with Apple working so closely with Intel now, any hooks into this new technology will also be available to Apple (subject to the appropriate licensing deal). And you can bet that Jobs isn't going to sit back on his laurels and watch this unfold without getting in on the act. MS will have to share this market with Apple at least. Though where this leaves the Linux distros I don't know.

  17. Other things Bill Gates swore by by sl4shd0rk · · Score: 5, Funny

    There won't be anything we won't say to people to try and convince them that our way is the way to go.
    --
    In the decade ahead I can predict that we will provide over twice the productivity improvement that we provided in the '90s."
    --
    Let's face it, the average computer user has the brain of a Spider Monkey.
    --
    If you can't make it good, at least make it look good.
    --
    Microsoft programs are generally bug-free. If you visit the Microsoft hotline, you'll literally have to wait weeks if not months until someone calls in with a bug in one of our programs. 99.99% of calls turn out to be user mistakes. I know not a single less irrelevant reason for an update than bugfixes.
    The reasons for updates are to present more new features.

    (sources)
    http://www.brainyquote.com/quotes/authors/b/bill_g ates.html
    http://www.antioffline.com/HUM/bill.gates.quotes.h tml

    --
    Join the Slashcott! Feb 10 thru Feb 17!
  18. Think it won't work? by Puls4r · · Score: 5, Insightful

    Hey, you've got DRM on your DVD's and MOST people barely notice it.

    Except of course when they reach the FBI warning and can't fast forward past it. And as much as my wife bitched about the annoyance of having 8-10 tracks prior to the movie, she's come to accept it because.... EVERY DVD has it.

    So down the road, when we're force to buy a new monitor with our new computer, well, we won't think much more about it than we do when we get a new phone with our cell plan.

    The only way this is going to fail is if the companies can't hack out a good standard. If it becomes too much of a hassle, THEN it will fail. If my new monitor won't work on a different computer that's also new, or if I'm severely limited by monitor choice, that MIGHT make enough of a difference for me to choose another alternative. But I doubt it.

  19. What's the incentive? by rolfwind · · Score: 5, Insightful

    No one wants to buy into a crippled system and consumers are getting more savvy to these type of things. I hear enough complaints about the regional encoding in DVDs and players and the market found a way aroud that (region 0).

    Sadly, while people are too lazy to vote/voice against things like DMCA, they still vote with their dollars.

    iTunes is an example of a system that provides assurance to the music industry while being flexible enough for consumers to use - like being able to share music with friends.

    Napster on the other hand is a more inflexible model and also seems like a traitor in some respects:
    http://p2pnet.net/story/5521

    The thing also with HD DVDs is that right now the DVD is an entrenched market that's good enough for most people. Most people don't even own the right TVs to make use of the enhanced resolution. So what is the incentive to move away from DVDs? Hell, VCR's had good enough resolution but the killer was the ability to go anywhere in the movie like a CD (and the smaller size of discs).

    If people percieve that HD DVD's or PAIDFOR online downloads are severely restricted, what incentive do they have to move away from DVD?

    Resolution they can't take advantage of/notice in most cases? 1 hour wait times until the hour long FBI warning goes away because it stops all those pirates? Compulsory previews?

  20. Funny by Evro · · Score: 5, Insightful

    Several people have already posted about the irony of Bill Gates complaining about another company's monopoly. But I find it amusing that after years of attempts to sell music online, by companies from all over the spectrum, people seem to have chosen Apple's iTunes for its sheer end-to-end simplicity without introducing annoying DRM that gets in the user's way. Because of that, the market has rewarded them with most of the business. In other words, if they are now a monopoly, it's due to customers choosing their product, unlike Microsoft's monopoly, which was created through exclusive deals with hardware manufacturers and technological lock-in.

    --
    rooooar
  21. Steve Jobs, Pixar and video by theolein · · Score: 4, Interesting

    While Bill Gates is thrashing about in frustration because the online music market didn't bend over and do the usual market submissive act to Microsoft, I'm pretty sure he's going to lose the next market, video, as well. Bill Gates' biggest problem is that he hasn't realised, in 10 years of OS dominance, what ease of use is. Sit Mac OSX and WindowsXP next to one another, and note the difference after a short while. He just doesn't get it.

    The same thing with DRMed WMP files and the really bad interface on WMP, where Microsoft thinks it is doing the users a favour by allowing all sorts of skins to be used. Compare that with iTunes' simplicity.

    Steve Jobs may be an arrogant prick who deserves a kick in the balls by all the people he's insulted over the years, but he's right on the money when it comes to understanding what the market and above all, the consumer, likes: simplicity.

    99% of the world neither cares nor knows what DRM is or how their phone or iPod works. All they really want to do is simply put some songs on the device and press play. They don't care about wireless, bluetooth or whatever. The iPod's simplicity is why it stole the market from Creative, not because of features, and Creative's executive are still moaning about how their devices have more features.

    The video device from Apple will be the same, and will fit in just as easily with Apple's online store as the iPod does.

    And Microsoft will still be flapping about like a fish out of water, and Bill Gates will still be promising to defeat Apple.

  22. End-to-end experience really a goal? by dpbsmith · · Score: 5, Insightful

    How about an end-to-end experience in which I "buy" a video, I "own" it, it is then "mine" to use as I wish, I can "keep" it as long as I like, I can "play" it over and over again, I can "fast forward" or "rewind" to any portion of it it at any time, I can use any player I like from any manufacturer, and I can "lend" it to a friend... ...you know, just like VHS?

    Doesn't seem hard to grasp or difficult to implement.

    Unless (gasp!) he's lying about the end-to-end user experience really begin their main concern.

  23. Microsoft Strategy by Mr_Silver · · Score: 5, Insightful
    One thing I notice that most posters haven't got is the fact that Microsoft doesn't just provide functionality for end users, they are also in to provide functionality to corporations that can ensure that they make more money.

    Take DRM, Microsoft isn't probably that interested in it, however the music and film industries are and Microsoft sees the fact that getting them on board will help to ultimately boost it's bottom line.

    These music and film companies want to sell content to customers over the internet and to their PC, but they don't want any chance of potential piracy. Microsoft is activily courting their requirement, not because customers want to do less with their content, but because MS can turn to those companies and say "hey, you complained that computers were insecure, but Longhorn means you can sell secure content and we are here to help you achieve that".

    Microsoft's biggest advantage is that when Longhorn comes out, it will be pre-loaded onto computers and when Bob gets downloadable video content for his PC, Frank will want some of that too although he'll find that XP just doesn't cut it and he has to upgrade.

    Look to the money. There are huge amounts to be made in music and video downloads, however Microsoft has to include functionality (DRM) into their computers to be able to persuade those companies that their content isn't copyable otherwise they'll never dip their toes into that market. When they do (through the assurances of Microsoft that the PC can ensure secure content stays secure) I can only assume that they'll also have to use a MS subscription based service to serve that content and all the associated licence fees for wrapping their content into the MS DRM.

    In short, including DRM in Longhorn opens up another market for Microsoft to dominate. They'll force people who want to have downloadable video to upgrade and also gain licencing fees from their DRM solution used by the content providers under the illusion that their content really is secure.

    --
    Avantslash - View Slashdot cleanly on your mobile phone.
  24. Apple has shown the exact opposite. by Kamiza+Ikioi · · Score: 4, Insightful

    Apple has proven that (for music at least) large profit isn't to be had.

    It hasn't?

    Apple quarterly profit surges on iPod

    iPod pumps Apple profit

    Apple profits, revenue up again

    Apple sings on iPod sales

    You can say it's an iPod vs iTunes on money. But one is worthless without the other really. The same is true of the new competing DVD formats, either of which would be useless without the content.

    Seems to me that MS is pushing the desktop OS into the TV os market with Windows Media Connect and XBox. Oh yeah, video is well within their sphere of domination dreams, even if it's licensing a dominant platform technology to a content provider... and really, that's what Gates is saying here. As for Apple, if you look at total profits at Apple, music just may be more profitable for them than computers in the future.

    --
    I8-D
  25. We control the horizontal by BaudKarma · · Score: 4, Funny

    We control the vertical.

    Who knew they were talking about markets?

    --
    It's the land of the brave, and the home of the free
    Where the less you know, the better off you'll be.
  26. Re:The trouble with the black market by Trelane · · Score: 5, Informative
    You can complain about copy protection all you want. But you must recognise it is there to cut into black marketeers profits, linux users and other consumers are just the collatoral damage of that war.
    Actually, no. Generally, the black marketeers will have either inside sources to the un-DRMed originals, or they will have the resources to break the protection. (Bear in mind that US/Western copyright isn't accepted everywhere (e.g. Iran), and that all it takes is for one entity to un-lock the content for it to be loosed on the black markets!) The best that DRM aims at is keeping the average user from doing what the entity publishing the content (usually the record companies or movie producers) doesn't want them to do. This may be copying to share with a friend, transcoding the DVD to watch on a Palm, or watching the video on a player which hasn't licensed the DRM scheme (for instance, any non-embedded linux, BSD, BeOS, OS/2, Amiga, or other small OS; embedded Linux has at least one legal player you can buy from). Additionally, it has the annoying side-effect of not letting me, for instance, keep my CDs and DVDs in a nice, safe location and storing the actual movies on a big RAID and NFS-mounting them to my notebook or whatever in order to play them (or transcoding and streaming them to my palm).

    So actually, the Digital Restrictions being Managed by Apple, MSFT, and the record and movie houses is leveled directly at you, not the black marketeer.

    --

    --
    Given enough personal experience, all stereotypes are shallow.