There's no other conclusion to reach after reading news accounts of the fact that students at the University of Rochester are choosing to pay for songs at iTunes rather than download them for free from Napster via a deal the university struck with the latter song provider. (Regular readers of this space know I love to rave about my Napster to Go. One asked if I'm a paid endorser -- no, but I'm open to that, Napster, if anyone there is reading this.)

This has been seized upon by the copyleft, for reasons that defy logic, as a victory for them. I fail to see that. It's a victory for Apple in the market, because they've got a device that's so hot -- the iPod -- that people are willing to pay the same provider for content designed for use on that player rather than download free music to a player that doesn't have the same street cred.

This isn't really a copyright issue so much as a standards issue. PFF President Ray Gifford said as much when he testified on this very issue at a U.S. House hearing with a Napster executive. The issue then was whether there was a role for government in mandating compatibility among players and musical formats. Absolutely not, Ray said. Let the market sort it out.

As Mike Godwin points out, right now the market is sorting it out in Apple's favor. I'm a consumer who thinks Napster brings me far more for my money than an iPod and iTunes. But both of my parents own iPods and are happily spending 99 cents a pop to try out new music that I'm trying out for free.

I'll confess, I like the iPod better than my Creative Zen Micro; I wish the former was compatible with Napster. But markets provide choices, and if the choices aren't sufficient market forces move to provide those missing choices. Perhaps, as more people accept the idea that from a user enjoyment perspective, a rented song sounds the same as an "owned" one, more people will migrate to subscription services and Jobs will allow the iPod to work with other services. Or not, as is his choice. Maybe, as many say, his stubbornness will lead the iPod to eventually become like the Apple computer, adored by its users but occupying only a small sliver of the market.

In the meantime, I'll keep in mind that if I find myself on the University of Rochester campus, listening to my Zen player with my black earbuds will make stand out about as much as a Pink Floyd fan (welcome back, Roger Waters!) at a Toby Keith concert. (But wouldn't a college student today, born long after the band's split, ask, "By the way, which one's Pink?")

posted by Patrick Ross @ 7:11 AM | Markets: Business, Investment & Innovation

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