Apple to Microsoft: No iPod for You


Apple has rebuffed requests from Microsoft seeking iPod compatibility with tracks at its new music store, Rolling Stone reports.

MS will offer tracks via Hotmail, Messenger and MSN with about 600,000-700,000 songs available, rising to 1 million in the near future, which will match Apple's iTMS offerings.

The article indicates that sources close to MS has reported that MS has asked Apple to make the iPod compatible with its Windows Media Audio (.wma) format. Apple has previously resisted such a move, preferring to stay with the QuickTime-based AAC and MP3 formats.

MS is likely to bundle its music store software and connectivity with future versions of Windows, much as Apple bundles iTunes/iLife with every new Mac.

Analysis: Supporting .wma could work to Apple's advantage. Even if they sell fewer iTMS tracks (which isn't where the money is), they'll sell more iPods (which is where the real dough is). After all, Real is effectively helping Apple sell more iPods by making its tracks playable on the iPod via harmony. And we all know that MS can make life very difficult for 'uncooperative' companies.

Since Apple is crushing Sony in the Japanese market, there is a golden opportunity here to make iPod the 'gold standard'. It already is, but with every music track format supported, iPod can be absolutely, completely dominant. And - reality bites - MS isn't about to abandon .wma or use AAC, is it? Yes, compatibility would help .wma, but the iPod sales would vastly offset any negatives associated with .wma support.