By allowing competitors to leverage the already popular AAC/FairPlay combo, Apple would give them a strong alternative to WMA. Apple might lose out a bit in the short run. But it would be far more likely to prevail over the long haul if it allowed these natural allies into the fold. If Apple truly believes it can make the most innovative music players and software, then it has little to worry about from competition. Standards barriers that ghettoize Apple's music efforts pose a far greater long-term risk. [BusinessWeek]That's like Microsoft saying to itself, "If we truly believe we can make the most innovative Office software, then we have little to worry about from competition. So let's stop all this monopolistic stuff and just focus on writing great software. "
But that will never happen because in fact Microsoft does need to make full use of its monopoly power to be as big as it is, and it knows it. (Read Breaking Windows for scenes of Bill Gates becoming near-apoplectic when it is suggested that they just ride on their software development expertise.) If they relied on their expertise alone, they would quickly shrink to a fraction of their current size, IMHO.
Still, Apple may have no better choice than to open up its music software.
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