Digital Home Thoughts: Microsoft Courts Hollywood Allies

"When Apple Computer Inc. transformed the digital music scene in April 2003 by selling songs over the Internet, the richest man in the world was not amused. Microsoft Corp. Chairman Bill Gates had struggled for a decade to get his software into consumers' home entertainment systems. Now the digital media party was finally starting, and he wasn't invited. But the blow gave Gates new insight, motivation and some needed humility — and it intensified work on what might prove the turning point in his quest to extend Microsoft's supremacy from the office into the living room."

Microsoft needs better hardware to help them deliver content to consumers and I think the Xbox 360 is the first salvo. Next they'll need to start producing their own music and video players or sign someone like Sony to make devices people want. Their current business model just isn't working. Video seems to be the next great frontier (how many years have we been saying that?), but with Apple on the prowl, who know if Microsoft just might have missed the boat again. Of course waiting for Hollywood to produce content for your players has been the problem and I suspect that is why Apple has waited so long. I'm not betting against Microsoft, but they have shown no signs that they'll be able to break Apple's monopoly on the digital media market.