Analysis: Zune Is Taking Shape As Social Networking Gadget

Authored by Jay Baage on August 25, 2006 - 8:31am.

UPDATED. As new details about Microsoft’s iPod challenger Zune pop up in FCC filings, it is clear that its competitive advantage is in allowing users to create mobile social networks and stream music to nearby friends or strangers. However, it seems we will indeed have to wait for a Zune player that will let you download and buy the music you want on the go. You will still have to connect this version of it to a PC to do that. But the wireless DJ function and the ability to beam photos between devices are still great.

According to documents filed Thursday with the FCC, Zune has wireless networking abilities that once turned on, allow people to send and receive photos, as well as "promotional” copies of songs, albums and playlists. It sounds great, but the filing does not define "promotional copies". I believe it is a term also known as “controlled sharing”, usually involving a few selected songs with a time limit of how long you can keep them.

The WiFi DJ feature on Zune sounds really cool. Basically putting the device in DJ mode allows you to transmit a stream of whatever you are currently listening to, to four other nearby devices. The streaming can be limited to friends or left open to anyone with a Zune player (this will generate an on-screen notification that you have a listener). The DJ feature together with the photo-sharing capability will give the player an instant initial advantage to the current generation of iPods.

The regulatory filings this information is based on are documents required by the FCC before devices with wireless connections can be sold to the public. What is interesting is that they were filed by Toshiba. This makes many of us bloggers draw the conclusion that Microsoft will not manufacture Zune itself, but will outsource production to Toshiba. This might not be such a bad thing, since Toshiba has a lot of experience manufacturing these kinds of devices and outsourcing allows Microsoft to be flexible in negotiating future production contracts, which could explain the drop in suggested retail price from the originally reported $399 to recent reports having it at $299.

I will have more to come on this story, as further details become available.

UPDATE: Microsoft confirmed as of late this afternoon that Toshiba Corp. will indeed build the first Zune player, thus making the information my conclusions are based on in this story pretty much official.

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Comments

DJ Mode

Submitted by zune (not verified) on August 25, 2006 - 9:17am.

DJ mode sounds really cool, brilliant actually. Hope they got all thier patents wrapped up.

About price and promotional copies

Submitted by Zune Player (not verified) on October 24, 2006 - 9:18pm.

Jay the price now set for zune is $249 and not $299. And yes anything shared via wi-fi will be promotional copies. They can play them to a maximum of three times within three days which ever comes first. Since they are protected by DRM.