Apple’s end-to-end model and ‘thieving’ iPod owners
Posted by Dennis Sellers 
May 12, 2006 at 12:42am
There’s speculation that Boot Camp, Apple’s beta software that allows Mactel systems to boot into either Mac OS X or Windows XP, is merely the first step on a road that will see Apple allow other computer vendors to put Mac OS X on their hardware. I’ve argued before that Jobs & Company won’t allow this. Why? Mainly because the CEO has long touted the benefit of the Mac as offering “the whole widget,” integrated software and hardware that’s user friendly.
I still believe this, and Wall Street Journal technology columnist, Walt Mossberg, underscores this with a new column that says Apple’s “end-to-end” model is better than Microsoft’s “component” model in our post-PC era.
The columnist says that the component model sees several companies making hardware and software that run on a standard platform, creating inexpensive commodity devices that don’t always work perfectly together, but get the job done. In the end-to-end model, one company designs both the hardware and software, which work smoothly together, but the products cost more and limit choice. Of course, the component model won out in the personal computer wars, but Mossberg doesn’t believe history will repeat itself with the iPod.
“I think the end-to-end model can prevail this time, both for Apple and other companies,” he writes. “Consumers want choice and low prices. But they also crave the kind of simplicity and integration that the end-to-end model delivers best. Sure, you can get more variety in music players and in online music services if you opt for the Microsoft-based music instead of the iPod system. But the iPod, Apple’s iTunes software, and the iTunes Music Store work so well together that users can just relax and enjoy the music. By contrast, the hodgepodge of players, software and online music stores on the Microsoft side frequently have trouble synchronizing between computers and players.”
I also think this is the reason that Apple won’t license its Mac operating system to other vendors. The beauty and elegance of the Mac is that it just works. Bringing other hardware vendors into the equation would likely result in the chaos of the Wintel world as well as eating into Mac hardware sales (still Apple’s biggest source of revenue).
So I think that Apple will keep making the “whole widget” when it comes to the Mac, the iPod and whatever other devices the company has in store. (Mossberg thinks that “Apple is working on other projects built on the same end-to-end model as the iPod: a media-playing cellphone and a home-media hub.”)
On another topic, Real Networks CEO Rob Glaser says that iPod users are stealing music. “The average number of songs sold for the iPod is 25, and there are many more songs on iPods than 25,” he told The Guardian. “About half the music on iPods is music obtained illegitimately either from an illegal peer-to-peer networks or from ripping friends’ CDs, which is illegal.”
As an iPod user, I’m insulted. First of all, I’d like to know where Glaser gets those stats. Maybe they’re true, maybe not. And if they are, shame on those who rip off artists by stealing their music. But there are plenty of us who use our iPods legally. All the songs on mine are either purchased from the iTunes Music Store or “ripped” from CDs I’ve purchased.
Is the iPod ever used for illegal activity? Certainly, but then so is most technology. In my opinion, the iPod and the iTunes Music Store (which, by the way, now sells more music than Tower Records or Borders) has made great strides in getting folks to legally download and purchase digital music.
Apple is hitting all the right notes in the digital music biz, and Real Networks isn’t. Glaser’s comments sound like sour grapes to me.
Thoughts? Write me at daseller@earthlink.net
Sprocket999 Says:
Boy, this Rob Glaser is sure the genius. But I wonder why he singles out only iPod owners. Does that mean everyone else with a non-Apple unit is playing fair? Or IS it just sour grapes? My vote is for the latter too, considering the state of Real Networks. Putz.
Posted on May 12, 2006
JuggerNaut Says:
Rob Glaser is just sour about Real’s major failure with the “Music Freedom” that was not only hypocritical of Apple, but was just a BIG fallacy all together!
Posted on May 12, 2006
Johnny Appleseed Says:
I hope Steve is right, and Apple is just waiting for the rest of the PC industry to catch on to its end-to-end model. I’d like to see some dramatic market share gains.
Posted on May 12, 2006
KenC Says:
Glaser got them from Ballmer. Remember him saying that iPod users were thieves?
Anyway the numbers are simple math, 1 billion songs divided by roughly 40 million iPods equal about 25 each.
Posted on May 12, 2006
ken2 Says:
The main problem with the component market is the level of competition, and the impact it has on price. Basically all of the PC makers are working their little bums off for units that have very slim margins. Business sales may be OK, but consumers deliver very little profit and (in general) want more customer service than the profit level provides. The OEMs are, to some degree, digging themselves into a hole.
Apple’s end-to-end approach not only works, but works very well. It provides an excellent computer environment for the users and delivers an excellent gross margin - very nice for future R & D investments.
As far as Glaser goes - I haven’t paid attention to him in a long time.
Posted on May 12, 2006
BiffBop Says:
Here’s the problem with simple math. I have 1034 songs on my iPod mini (4gb). Not one is ‘hot’, downloaded from ITMS or any other music service—just ripped from the CDs I bought and paid for with the sweat of my brow over the years. Now I’m counted in that 40 million, and I’m sure there are many more like me out there. Oh wait . . . I know one right now. My wife. OK, that’s two of us out of 40 million. Glaser, Ballmer. Feh.
Posted on May 12, 2006
Tenacious MC Says:
Apparently, it’s not illegal to borrow your friends’ CDs and rip them yourselves.
http://www.freedom-to-tinker.com/?p=847
Posted on May 12, 2006
Jarod Says:
Rob Glaser is the model for the ‘failure’ CEO. If it weren’t for that settlement he got from Billy Goat, he’d be out on the streets where he belongs. It’s only a matter of time though. Glaser is a success just as much as Microsoft is ‘innovative’. In other words.. NADA, ZILCH, when pigs fly!
Posted on May 13, 2006
Government Drone Says:
Well, actually, Glaser is right.
In the US, copyright law has exceptions that are generally referred to as ‘fair use’--& ripping a CD to MP3 files for playing on your own computer or your iPod or whatever is included in that category.
But in Britain, the concept of ‘fair use’ does not cover ripping a CD to MP3 tracks, even for just personal use. So, for British iPod users at least, the only LEGAL way to fill up their players is to buy tracks from iTMS.
Recently the British counterpart to the RIAA has spoken of rethinking its opposition to music file copying for backup/portability uses, but I don’t believe that this has yet gone into effect. Till then, therefore, if you’re in the UK with a bunch of MP3 files on your iPod, you’re technically breaking the law, unless you actually hold the rights to those files.
This does beg the question of whether Glaser is aware of this quirky difference between American & British copyright law…
Posted on May 13, 2006
Article Information
Comment on this Article Print this Article Email this Article Digg This
Contributor
Dennis Sellers
Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 4,000 magazine, newspaper and online articles to his credit. He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.
CounterCorp Says:
If you’re concerned about artists getting ripped off, then you shouldn’t but music from either iTunes or CDs distributed by the big five music corporations—because both of them exploit the artists who actually produce the music.
You’d be better off downloading the music from P2P networks or copying friends’ CDs and then sending the artists a $5 dollar check (or even $1). That’s more than they’ll make through the “legal” exploitation you seem so eager to support.
Posted on May 12, 2006