After internal complaints that its hardware and software partners weren’t doing an adequate job competing with Apple’s iTunes and iPod in the digital music market, Microsoft released its Zune player and software. But Zune wasn’t a foregone conclusion, according to an internal Microsoft emails that recently came to light. Instead, Microsoft also considered a partnership with rival Apple.
This development came to light when evidence was introduced at Microsoft’s class action antitrust trial in Des Moines, Iowa. Many had long understood that Microsoft was unhappy with its partners, a fact driven home in a 2003 email message named “sucking on media players” sent by then-Microsoft president Jim Allchin. He was unhappy with the quality of MP3 players from companies such as Creative and Dell.
“My goodness it’s terrible,” Allchin wrote a particular Creative model. “What I don’t understand though is I was told the new Creative Labs device would be comparable to Apple. That is so not the case.” Amir Majidimehr, currently a Microsoft corporate vice president who oversees the company’s Consumer Media Technology group, replied “Now you feel our pain.’
Majidimehr told Allchin that the company was providing cash prizes to its hardware partners in an effort to get them to improve the designs of its devices. Additionally, Microsoft later helped hardware developers co-design devices. For example, the iRiver clix players were largely designed at Microsoft and even include a font from Windows Vista. Majidimehr told Allchin that if its efforts didn’t pay off, Microsoft might need to “do our own hardware.”
Allchin suggested that he could talk to Apple CEO Steve Jobs about making the iPod compatible with Windows Media player. He feared that the iPod’s success could “drive people away” from WMP. Microsoft, of course, is doing just that now with the Zune.