Apple Computer CEO Steve Jobs was asked during a November meeting with analysts whether the company would ever make its iPod music player work directly with something other than its iTunes Music Store. There was a noticeable sense of accomplishment in his voice when he answered. First he pointed out the dominant market position achieved by the iPod. Then he noted that the iTunes store had just captured more than 80 percent of the market for legally downloaded music. "Why should we work with another music store when we're working with the Microsoft of music stores?" he asked, getting a burst of laughter from those around him.
Jobs was referring to the dominance achieved by Microsoft's Windows operating system on PCs. But more than delivering a competitive jab, his answer underscored the situation in which Apple finds itself -- as the market leader in music downloads and portable music players. Microsoft would like to chip away at that lead on both fronts. The Redmond software company has said it plans to offer a music download service later this year through its MSN Internet service. With Seattle-based Loudeye, Microsoft last month began offering a service that lets other companies launch online music stores.
News source: Seattle PI
