AOL: Online music's next king?

NEWS
America Online may do with music players what it has done with instant messaging -- become a kingmaker, a new report from Jupiter Research suggests. Analyst David Card believes that AOL is poised to make a serious run now that the market for music players -- dominated by RealNetworks's 135 million RealPlayer installs -- is entering a new phase in which cobbling together programming and information into a neat package will be key to its success. Aside from AOL, the Jupiter analyst also sees Microsoft's MSN Explorer poised to take advantage of a market "no longer being a matter of codecs, user interface, distribution, or even the number of signed labels". "The key to music player success is integrating the software with programming and promotion," Card said in a telephone interview Tuesday from Los Angeles. America Online's 6.0 version, released at Internet World, certainly is a crazy quilt of software and content, including WinAmp, the music player Spinner, and either content or software from RealNetworks, Launch Media, CDNow Online, SonicNet, MTV, and RollingStone.com, Card wrote in a recent analysis. For instance, he added, AOL's new programming, which has a RealPlayer embedded into it, is haphazard and sometimes makes arbitrary choices, such as using RealNetworks for streaming but not in its jukebox application. And, "as usual, most of the software [in AOL 6.0] is one revision behind the state of the art," Card said. "But AOL is the master of promotion," Card added, noting that AOL Plus broadband content appears to promote music clips and downloads. The Music, Entertainment and teen channels also offer up a melange of listening, download, and retail opportunities. AOL is also in the midst of buying Time Warner and all its content, which potentially could be offered in premium services such as AOL Plus, which broadband users can employ to access video and audio files. AOL is keeping its music player plans secret for now. A spokesman for the online giant said this week that "we don't talk much publicly about our plans for a music player." He declined to comment on Card's assessment. If it will truly rise to the top, AOL will likely have to overtake a pack of media players now on the market. According to PC Data statistics, RealNetworks is the industry's 3,000-pound gorilla, reaching an estimated 64 percent of all home PCs. Microsoft's Windows Media Player 6.0 or higher is a distant second, reaching about 39 percent of all home PCs. Winamp is third, with 14 percent market penetration. The rest of the media players are bunched together, with none claiming more than 1 percent of the home PC network, according to Jerry Giganti, PC Data Internet analyst. Giganti doesn't see RealPlayer losing its grip anytime soon. As Card noted as well, RealPlayer already has an edge in delivering content especially because it has launched a content-based subscription service. But the future landscape isn't as crystal clear to Giganti. He thinks RealPlayer's massive short-term success will be enough to hold onto the top spot for a while, but after that, "Microsoft, AOL, they all have a chance. I don't think there's a real long-run favourite," he said. The Internet is changing the face of the music industry forever. Find out more at the MP3 Newsroom. Have your say instantly, and see what others have said. Click on the TalkBack button and go to the ZDNet News forum. Let the editors know what you think in the Mailroom. And read other letters.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

tinycg

Don't forget to check out apps like GoodReader or SlideShark either, they're indispensible for people on the go in presentation situations. Best...

2 hours ago by tinycg on Four top iPad apps for people on the move
TerryRK

Well it seems there is something a number of us agree on. Why is the Ubuntu Unity launcher so ugly? I thought perhaps it was something to do with...

6 hours ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
Freebies202

Duplicate comments are not made intentionally. Its very good to know that now you are keeping check on this problem because sometimes a commenter...

16 hours ago by Freebies202 on Microsoft fixes blog comments, speeds up blogs with open source
kevinmchapman

"the very significant number of users" and "many (most) of us" - you have no evidence for these statements. It is a fact that most users are saying...

24 hours ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
Marg Menzies Harrison

Another grammar faux pas is the improper use of "you". When sitting down down in a restaurant, for example, I get cringe when the waitress...

1 day ago by Marg Menzies Harrison via Facebook on 10 flagrant grammar mistakes that make you look stupid
zdnetukuser

And NOW, folks, for Canonical's next trick... Kubuntu is late. Here's a pencil. Draw your own conclusions. cf.:...

1 day ago by zdnetukuser on Linux Minterface
Moley

@kevinmchapman. The discussion here reflects the very significant number of users who really do like the traditional menu system and who wish to...

1 day ago by Moley on A tale of two distros: Ubuntu and Linux Mint
kevinmchapman

Er, no... It is an efficient means of finding the application/file/setting you need in one place. The icons are a simply a fallback for when you...

1 day ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
TerryRK

Isn't the provision of a text based search an admission by the developers that the mass of icons approach does not work? I don't need to use a...

1 day ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
kevinmchapman

"Unity and GNOME 3 both abandon the old text-based cascading menus in favour of a graphical icon-driven system." Point truly missed. Both use a...

1 day ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
TerryRK

whs001 - Thank you, I'm glad you liked the article. I absolutely agree with you on your first point. I should perhaps have made it clearer that...

1 day ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
Dennis Nilsson

If we allow corporate interest to dictate the way our government circumvents due process against foreign entities then we should accept the same...

1 day ago by Dennis Nilsson via Facebook on ACTA stumbles in Germany
GHar123

I totally dislike pirating of works, I fear that artists will be deterred from creating works if they think that they are going to get ripped off....

1 day ago by GHar123 on ACTA stumbles in Germany
JCB33

How dare film makers, artists or anybody that invests in creativity stop us pirating their works for free. I want to be able to walk into my local...

2 days ago by JCB33 on ACTA stumbles in Germany
Moley

@GrueMaster. I prefer horses for courses rather than one size fits all. I, and I suspect most other computer users, do not really wish to have...

2 days ago by Moley on A tale of two distros: Ubuntu and Linux Mint
greycynic

The product that scares me every time I have to use it is the Office 2007 version of Excel. The first bug that I found was applying the median...

2 days ago by greycynic on Ten flawed products that derail productivity
GrueMaster

Nice review and very informative. One thing I'd like to add (in reply to whs001's 1st question), the main reason to have the same interface from...

2 days ago by GrueMaster on A tale of two distros: Ubuntu and Linux Mint
Frederick Wrigley

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

2 days ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint
bdantas

Excellent article. One small correction, though--although a fresh installation of Linux Mint 12 will, indeed, provide the user with a version of...

2 days ago by bdantas on A tale of two distros: Ubuntu and Linux Mint
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

2 days ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material