Zune.net Is Simply No Match for iTunes, but Still Draws Quite a Crowd

The now traditional Apple vs. Microsoft face-off, translated to the digital media player market into the iPod and the Zune, also reverberates online, as both companies have built ecosystems of content around their specific devices. In this regard, Apple of course has iTunes and Microsoft - Zune.net. In early October 2007, Microsoft introduced Zune 2.0, on the heels of the new line-up of iPods. Along with the new devices, the Redmond company also brought to the table offerings including Zune Arts and Zune Originals, in order to complement the new Zunes with a 80GB hard-drive, as well as the versions featuring 4 GB and 8 GB of flash memory.

According to Hitwise, Zune 2.0 is a success, judging strictly by the volume of the audience that has crowded Zune.net. "The market share of visits to the Zune website jumped 299% on Christmas Day 2007 (December 25, 2007) versus Christmas Day 2006 as new Zune owners visited the website to sign up for a new account and download software. In addition, the market share of visits to Zune.net showed an increase of 392% when comparing Christmas Day 2007 to the previous day", Hitwise announced.

However, Hitwise has also underlined the fact that iTunes is still market leader when it comes to online hotspots offering materials for download. With a share of 0.68%, iTunes grabbed a slice of audience six times larger than Zune.net, which climbed all the way to 0.09%. On Christmas Day 2007, the visits to the iTunes website increased by 399%, in comparison to December 26th, 2007, and 169% over December 24th, 2006.

"Although the Nintendo Wii was the most talked about product during the holiday season, mp3 players were also very popular as Christmas gifts", said Heather Dougherty, Director of Research at Hitwise. "This year the Zune has captured interest from music listeners with a new line of redesigned players and discounted older models while the popularity of iPods continued to drive traffic to the Apple Store and iTunes website."