How Should Apple Respond to Real's iPod Hack?
- 2004.07.30
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RealNetworks, the company behind the RealPlayer software, recently released a hack for Apple's iPod. This hack, Harmony Technology (as it is called), allows people to play other formats of music (other than MP3, AIFF, and AAC) on their iPod.
Considering that most download sites don't use any of those formats, Harmony allows people who want to purchase songs from Real's site and play it on their iPod, to do so.
However, Apple doesn't like this. In fact, they've issued a statement saying that RealNetworks may have violated the DMCA (which helps protect electronic copyright). Understandably, Apple is upset, particularly because Real just went ahead with it without getting permission (not that Apple would have said yes anyway). Apple now says that the Harmony software may not (in other words, probably won't) work in future versions of its iPod software and future releases of the iPod.
Is Apple just harming itself?
Apple has historically
been very closed when it comes to its technology. Think of the original Mac, which was literally
closed - an average consumer couldn't open it, and you couldn't
even add memory!
Apple finally did away with its proprietary ADB and serial ports in 1998, but the Mac OS still runs only on Macs, and many more recent Apple monitors only work on Apple computers.
Even the original iPod was Mac-only.
So it's not unusual for Apple to decide on a closed-door policy when it comes to the music format used on its iPod. But might it possibly be good for them to open up a little? If people could download music from other sites and use those files on an iPod, would they be more likely to buy an iPod in the first place?
Or would the iTunes Music Store lose money when people start finding it more convenient to just download their music from another site - or start using several different ones? While I like what Real is trying to do - allow people to use something other than the Apple AAC and the MP3 format - I totally understand Apple's concern. Perhaps the iPod, being able to play other formats, will actually harm the fair share of online music sales Apple is experiencing with it's iTunes Music Store.
Given that Apple says it is barely past breaking even, this could be a problem for them.
But what if it compromised with RealNetworks?
Apple could allow Real to produce the software in exchange for some publicity for the iTunes Music Store. The songs that Real doesn't have, they could link so you could download them from Apple. That way Real would benefit - consumers would be able to play another format on their iPod - and Apple wouldn't totally lose out.
Knowing Apple, it will maintain its stance, and things will probably turn out just fine for them anyway.
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