MTV Networks, RealNetworks, and Verizon Wireless announced yesterday that they were going to team up to "create a single, integrated digital music experience that consumers can access via their PC, portable music device, or mobile phone." It's an interesting combination of players and one that is "anti-startup" by bringing together three very established companies in their respective fields. Undoubtedly, it's also aiming at Apple, who's been able to conquer both the software piece as well as the device field.
My big question is - will RealNetworks be able to provide as much value as the other two partners? RealNetworks is not new to partnerships with device creators, having partnered with Sony back in 2000 and with Sandisk in recent years; however, Sandisk's latest media players are now based off of Yahoo's Launch! service.
My second big question is - how much room is there for truly innovative ideas to emerge? Partnerships like these are created to take advantage of the market shares that each partner can bring to the table. However, the only way that anyone will be able to overtake Apple is by creating a sexier and easier-to-use product or on price - Apple has already created a brand where the consumers are willing to justify paying the price premium.
Hopefully, this will be an opportunity for some really unique ideas to emerge, especially around distribution, and give Apple a run for their money - true competition rewards innovation and in this case, I think media consumers everywhere would win. It'll be even more exciting to see if this creates opportunities for more independent and socially conscious content to trickle down.
I think they are doomed to fail...
If there is one thing that Apple learned, is that these kind of partnerships don't work. The late eighties much-vaunted partnership between Apple, IBM, and HP imploded.
Instead, controlling the platform works.
Now the flipside to all of this is open source--no one controls the platform so everyone does.
They should add that it only works on Zunes now, too.