Play it again, Zune

Microsoft Corp. doesn't often play David to someone else's Goliath, but today the PC software giant debuts the redesigned portable music players that it is pitting against Apple's industry-dominating iPods.

The new Zune (rhymes with soon) models and accompanying software correct many of the original flaws noted by consumers and reviewers after the gadget launched just in time for holiday shopping last year.

Microsoft must gain strength and credibility in the portable music market over the next several years, industry experts say. Apple controls more than 70 percent of sales.

"Portable devices used for entertainment purposes is a very strong market opportunity," said Silicon Valley analyst Tim Bajarin. "Consumers (want more portability) then ever, and if Microsoft wants to extend its brand, they need to get a piece of this market."

Still, experts say, neither Microsoft nor other companies have to grab the top spot in the $5.4 billion domestic market to claim success.

"What if Zune stabilized at 30 percent market share?" wondered Debu Purohit, a marketing professor at Duke University's Fuqua School of Business. "Would that be so bad?"

Last year's 30-gigabyte Zune grabbed an estimated 10 percent of the hard-drive-based music player market. This time around, Microsoft has expanded its lineup – adding an 80-gigabyte hard drive model to compete with the iPod Classic, and 4- and 8-gigabyte flash-based players to vie with the iPod Nano.

The Zune pricing, too, exactly mirrors Apple's offerings, with the flash-based devices starting at $150 and the 80-gigabyte model going for $250.

The new 80-gigabyte Zune appears to be a significant improvement over its progenitor. Its screen is big and bright, and the white-on-black type is large and easy to read.

It did away with the clumsy click controls and now has a touch-sensitive pad across which users can slide a finger to scroll through menus and adjust the volume. The overall interface is more intuitive, cleaner and easier to read.

The device's Wi-Fi feature allows users to automatically sync through a home wireless network to download tunes from their computers.

It also allows the user to wirelessly get and play songs from other Zunes. Unlike Apple's iPhone and iPod Touch, though, users cannot connect to the Internet.

The 80-gigabyte model also comes with premium headphones, including rubber ear pieces that help seal out noise. And in a clever move, the ear buds themselves are magnetized so they stick together instead of dangling and tangling like so many other headphones do.

While the hardware is significantly improved and in some ways surpasses Apple's offerings, the software interface on the computer and in the online Zune Marketplace (the equivalent of the iTunes Store) still falls short.

The interface isn't as clean or intuitive as Apple's. For example, I struggled to find the places in the Zune software that let me see what was stored on the device.

And when you transfer a CD to your computer, the Zune software seems less likely to recognize the tracks on the CD.

For instance, one rather obscure classical music CD I loaded onto my PC went unrecognized by the Zune system, which classified it as "unknown."

But the same CD was instantly identified by the Gracenote database that Apple uses.

On another album, four cuts were recognized, but a fifth wasn't and was loaded under the title "Unknown Song 1.

Microsoft spokesman Scott Erickson late last week said the database was being beefed up and such issues would likely be less common in the future.

The Zune Marketplace is nicely laid out, but still not as useful as the iTunes store. For instance, typing in the traditional country/rock anthem "I Know You Rider" returns in a list of 78 song choices, but no albums that go with them.

That query in the iTunes store turned up numerous album covers as well as the list of songs.

Yet other Zune searches, such as "Hey Jude," turned up plenty of album listings.

The Zune software loaded onto the PC would occasionally behave erratically, spontaneously obscuring other programs running at the same time. Erickson said it could be a buggy early version of the software and hoped it would be fixed by today's launch.

At this point, Zune's inventory isn't as strong as Apple's – with 3 million songs available, compared with more than 6 million for iTunes. And while Apple has more than 500 TV shows and 500 movies for sale, Zune has none.

Unlike Apple, Zune has a subscription service allowing users to download an unlimited number of songs for $15 a month. The songs expire when the subscription lapses.

For music purchases, Microsoft clings to a clunky system in which a customer must purchase "points" that can then be redeemed for music on the Zune Marketplace. Most tunes cost 79 points, the equivalent of 99 cents. Apple charges 99 cents for most of its songs.

Such shortcomings could stifle Zune sales, at least until the products are further refined.

"The Zune player does sport a lot of improvements over the first one and is a more competitive product," Bajarin said. "But the software and store are still no match for Apple's simple user interface and their iTunes store."

Still, industry experts say the Zune doesn't need to be an instant hit. "Somehow people have the impression that because Microsoft is so dominant in Windows and Office that they should just step right in and take over the (portable music player) market, said Purohit, the Duke professor.

"I wouldn't underestimate Microsoft. They are a smart, capable organization. Just give them five years."

About the writer:

• The Bee's Clint Swett can be reached at (916) 321-1976 or cswett@sacbee.com.