Summary
Version History examines the Zune, Microsoft's ambitious but ultimately failed attempt to compete with Apple's iPod. Despite innovative features like Wi-Fi sharing, subscription music, and Metro design language, the Zune suffered from poor software execution, confusing DRM restrictions, and Microsoft's inability to integrate hardware, software, and services effectively—ultimately losing to the iPhone and smartphone revolution.
Insights
- Microsoft's core problem was timing and execution: good ideas arrived too early (before streaming technology existed) or too late (after iPhone disrupted the market), and the company couldn't simplify or focus the product vision
- The Zune represents a fundamental difference in philosophy between Apple (integrated products designed for users) and Microsoft (ecosystem plays designed for business deals), which persists in how both companies approach consumer products today
- DRM and music industry licensing deals, while intended to give Microsoft leverage, actually constrained the product and made it worse for users—a cautionary tale about letting business requirements drive product design
- Design language and interface matter enormously: the Zune's Metro typography-based UI was ahead of its time and influential, but poor software usability and lack of the click wheel made it frustrating to use
- The Zune's failure wasn't inevitable—it was a series of small misses (file-based not streaming, no AAC support, complex software, brown color) that compounded into a product that couldn't overcome Apple's integrated ecosystem and brand trust
Trends
Hardware-software integration as competitive moat: Apple's vertically integrated approach proved superior to Microsoft's licensing ecosystem model for consumer devicesStreaming vs. ownership paradigm shift: subscription music services were too early in 2006 but became dominant by 2010s, validating Microsoft's forward-thinking but poorly-timed strategyDesign language as brand differentiator: Metro UI influenced Windows Phone and modern Microsoft design, showing good design thinking can outlive failed productsMusic industry leverage: Labels' desire to break Apple's dominance led them to support alternatives like Zune, but this didn't translate to consumer preferenceSmartphone cannibalization: Dedicated media players became obsolete once phones could do everything, a transition Microsoft failed to anticipate or prepare forSocial features in media: Zune's 'squirting' (wireless sharing) was proto-AirDrop, showing early recognition that media consumption was becoming socialExecutive leadership impact: Jay Allard's Xbox success didn't translate to Zune, suggesting hardware success requires sustained focus and market timing beyond individual talentGadget blogging era: FCC leaks and early tech blogs created hype cycles that amplified expectations, making failures more visible and damaging to brand perception
Topics
Digital Media Player Market CompetitioniPod vs. Zune Product ComparisonMusic Industry DRM and LicensingSubscription Music Services (early 2000s)Metro Design Language and UI/UXMicrosoft Ecosystem StrategyApple Vertical Integration ModelWireless File Sharing TechnologyClick Wheel Patent and InnovationSmartphone Disruption of Dedicated DevicesMusic Industry Leverage Against AppleSoftware Installation and User ExperienceFile Format Support (AAC, MP3, WMV)Hardware-Software IntegrationConsumer Product Timing and Market Entry
Companies
Microsoft
Primary subject; developed and launched the Zune as an iPod competitor with integrated hardware, software, and music ...
Apple
Dominant competitor; iPod's click wheel, iTunes ecosystem, and design philosophy set the standard that Zune failed to...
Toshiba
Hardware partner with Microsoft on early Zune development; manufactured the Gigabeat device that preceded Zune
Universal Music Group (UMG)
Music label that made exclusive hardware revenue-sharing deal with Microsoft, giving Zune leverage but limiting catalog
Creative
Competitor in MP3 player market; made Zen devices that competed with both iPod and Zune
SanDisk
Competitor in portable media player space during Zune era
Sony
Music label and hardware maker that wanted leverage against Apple; supported Zune as alternative to iPod dominance
Xbox
Microsoft's successful consumer hardware product; Zune was meant to replicate Xbox's integrated approach
The Verge
Tech publication where hosts worked; covered Zune extensively during its launch and decline
Spotify
Later streaming service that validated Microsoft's early subscription music vision but with better technology
People
Jay Allard
Xbox executive who led Zune project; his success with Xbox didn't translate to Zune despite similar integrated approach
Bill Gates
Microsoft founder; sent famous 2003 email expressing frustration about Apple's iTunes dominance and Microsoft's response
Steve Jobs
Apple CEO; demonstrated superior product focus and user experience design that made iPod dominant over Zune
Steve Ballmer
Microsoft CEO; dismissed iPhone as expensive and overpriced while defending Zune's market position in 2007
Robbie Bach
Microsoft Entertainment and Devices Division head; presented Zune strategy to financial analysts as integrated ecosystem
Doug Morris
UMG CEO; negotiated hardware revenue-sharing deal with Microsoft to gain leverage against Apple's iTunes dominance
Phil Schiller
Apple executive; credited with inventing the iPod's mechanical scroll wheel, a key innovation Zune lacked
Peter Saville
Joy Division designer; hired by Microsoft to design limited-edition Joy Division Zune in 2008
Tony Fidel
iPod project lead at Apple; discussed in context of Apple's focused product development approach
Quotes
"Steve Jobs ability to focus in on a few things that count, get people who get user interface right, and market things as revolutionary are amazing things. This time somehow he has applied his talents in getting a better licensing deal than anyone else has gotten from music."
Bill Gates•April 30, 2003 email
"These devices are just repositories for stolen music and they all know it. So it's time to get paid for it."
Doug Morris, UMG CEO•Mid-2000s
"The Microsoft Zoom is one of those products that you will want to avoid at all costs, at least this first generation. In comparison to other media players on the market, the Zoom offers no clear advantage."
Digital Trends review•November 2006
"Microsoft tried to do so much and didn't actually do very much at all."
Digital Trends review•November 2006
"If the plan is clear, no meeting is needed. I want to make sure we are coordinated between Windows, DMD, MSN and other groups."
Bill Gates•April 2003 email
Full Transcript
It's the early 2000s and all you want to do is listen to some music. Best case scenario, you have the money to afford an iPod and the even more money to afford songs at 99 cents a piece. Worst case scenario, you have like an MP3 player with a dying hard drive that you are desperately trying to keep alive. Maybe you're running around with a binder full of CDs like it's the 90s. Well, I have a better answer. It's a new device from Microsoft and it lets you play music, listen to the radio, watch videos, look at pictures, and even share stuff with your friends. It's called the Zoon and it is going to kill the iPod. From the Virginvox Media, this is version history, a show about the best and worst and strangest and most important products in tech history. Today, we're talking music and all of the ways the Zoon did not, in fact, kill the iPod. Last week, Apple announced its cheapest laptop ever. And the wildest thing about it is it's really kind of very good. This week on the Vertscast, we're talking all about how Apple managed to make the MacBook Neo as good and cheap as it is and whether the rest of the PC market needs to be in just a full-blown panic about it. All that plus the latest on what's going on with LiveNation and Ticketmaster, what's going on with the Anthropic and the Department of War and the Future of Xbox? On the Vertscast, wherever you get podcasts. All right, we're back. Let's talk Zoon. V-song is here. V-Hello. Hello. Neely Patello is here. Neely, hello. Hello. Two very different Zoon experiences in the room, which I'm very excited about. Did either of you have the first Zoon? No, I was too poor. Did you want the first? I did want one. Yes. Because so Zoon comes out 2006. A young, wishy-eyed 18-year-old flying off to Tokyo to do the next seven years in Tokyo. My iPod, the one with the video, with a piece of, I had dropped it so much. Nothing was expensive, too. That's tough. So, I wanted something that was different. I really did not like iTunes back then. I still don't. I was going to say iTunes was never good. So, you know, my audience... Where are you beefing? iTunes is a perfect piece of software. I... Like 2006 iTunes. Absolutely not. And no. No. Anywho, yeah. So, like my audio file friends were all like into the Zoon and they had it and I was like, oh, it's brown. That's special. And then the interface looked cool and it had the cool type phase and I was like, oh, I would love to have one, but I'm poor. At least you had an iPod. I had like a creative Zen, something or other that was like a spinning hard drive inside of a box about, you know, the size of two hands. Oh, you were a fan. You got a hard drive. Okay, that was the whole thing. I went for the big one. It was either get a mini-tisk player or like a fake CD player. But they just played the tiny little ones and there was one that you could strap on your belt. Yeah, that was awesome. I wanted that. Couldn't afford that. So, I got like a used... Literally, it was the size of like, I don't know, like an iPad. No, it's a fan piece of me player. I had a Rio. Okay. The little purple one that was like ergonomics, you could like hold it. Oh, yeah. You know, it was like, it was shaped... Was that the one that had the tiny little horizontal screen on it? It was like a horizontal screen, but it was inside of an oval that was slanted. It was like... Oh, I didn't remember that. So they were trying to fake the way it looked. But like inside, it was just another segmented LCD screen. And it held approximately 10 songs. Because it was like ST cards or whatever. It was great. I loved it. So, you and I both brought Zunes today. Mine... I just bought... I bought a brown... You bought the brown... I put... On the eBay. I was just yours in, like your OG Zune. Or do you bought the Shwitz Show? No, I bought it on eBay for the show. It was $59. And I've spent a lot of time trying to decide if I got a good deal or a terrible deal. You know, it retained a surprising amount of its value for being a 20, almost 20-year-old device. Right? Yeah. I was going to say it retained a surprising amount of its brown. It's still a brown... It's still super brown. I just want to say, genuine kudos to whoever had this thing before me. They have... I mean, there's like thousands of songs on here. And whoever it is has like pretty sick music taste. Dude, that's funny. But I would like to read you a complete list of the playlists on this Zune. Yeah, yeah, yeah. That's what I'm talking about on eBay. It powers up. I mean, I'm impressed. It turns on. It works. No battery's flowing. It's like nothing. What? What's the charger? It's still got the... It is Microsoft's version of the 30-pin charger. Yeah. Oh, god. It's good stuff. There's one playlist called Christian Songs. We have Christmas. We have Easter. We have First. And we have Zune Gems. Zune Gems. And there are like 30 songs in Zune Gems and I have never heard of any of them. What's in the Easter list? What's in the First list? Oh my gosh, there's so many options. I take forever to scroll around this thing. Easter and Christmas are empty, which is very bleak and sad. So one thing I want to point out here is David struggling to use the interface of the Zune. Oh, this is brutal. I'm assuming only hardcore Zune nerds are going to listen to this episode of version history. But for some reason you stumbled into it. The innovation of the iPod was the wheel. Yes. By far this was the big innovation. And the first iPod had a literal mechanical wheel that you would turn to scroll up in the menus. Phil Schiller, this was his idea at Apple. And Apple had a patent on it and then they had a patent on the Click Wheel, which is where the iPod ended up. This is crazy. This is all, if you think about it. Fun fact, V picked the brown Zune up off my desk this morning and the very first thing she says is, oh, I forgot it didn't have a Click Wheel. I forgot. I just, this is a muscle memory. 20 year old muscle memory just gone. I was like, why no scroll? Oh, right. It's the defining interface element of that time. As Apple invented the Click Wheel, Mike Schuff couldn't use the iPad on it. So they made it a circle and it's a swiping touch circle and it has the exact problem that Apple solved with the Click Wheel, which is that it's slow and they just ran right into it being slow. And it's also, it's a very left right interface. So there's like, it has like a menu at the top where you go across all the different kinds of like filters and music and all that stuff and then it goes up and down as you scroll stuff. But then you go to the home screen, which is up and down. It's like trying to map the interface of the Zune is insanity. Yeah, that said, I go to the home screen and you mentioned the typeface. The typeface. Lovely, pretty. Lots and lots of Zune persists to this day across the entire industry. The Zune design became a lot of what Windows became and then eventually, whatever thing became. There's lots to the Zune that's good, but it's just very funny that they ran headfirst into the problem that Apple solved with the Click Wheel. Yeah. And Nila, you also brought a Zune. I brought a Zune. A special Zune. A special Zune. Da-da-da-da. So this is a period of weird exclusives across the industry. Somehow, the Zune team decided that what would save the Zune in 2008 is producing 500 limited edition joy division Zunes. You know, joy division. I've gone one. Famously the biggest band in the world. Everyone has to teach her very few people have the records. It's like, basically, yeah, that goes. So they were like, we're just going to put the unknown pleasure sticker on a Zune and then people will be confused and they'll buy that. But then we have to make it real. So they hired Peter Savill to was joy division in New Order's like main designer to design the whole thing. It is, I have it. And I'm just saying that he designed the whole thing because I don't have a joy division Zune to properly preserve it. You have to have the box that shipped in because it's so outrageous. So I have the whole thing. And this is the box that arrived. So you got this in 2008. In 2008, this is the box that arrived at my apartment in Chicago. It is huge. This is like fine jewelry that we're happening. This is fine jewelry. And then you pull out the actual joy division Zune. This is a Zune 80. It's like the second generation. I have number one 54 500. I've never taken the sticker off. I've never turned it on. But it has the full joy division catalog on it. It's this warning explicit content on it, which is deeply hilarious. And on the back again, the unknown pleasure logo. It says Peter Savill for joy division, the documentary limited edition. And it's just a Zune 80. I'll see this is nice. But my brown one is like kind of plasticky and gross. This one is like the Zune 80 was really really neat. Somebody up with this thing. I have not looked on eBay to see how much it's worth now. Will you let's see this. We just look on eBay for joy division Zune. What do you think it's worth now? The last time I looked, they were trending between $500 and $1000. Oh, how much did you pay for it? I paid list price. It was probably like $350 or something. Okay, I found one for sale. It is $2,099. And there are 33 watchers. There you go. Oh my God. People want this stuff. You're going to sell it. Is it worth it? We're going to wait for it to keep. I mean, you have it though in the original packaging. Yeah, that's true. Unopened. Unopened. On turned on with the stick on it. Who knows if this battery works. I feel like there's like a 40% chance. This is you just trying to like, you're like interest for your own eBay listing. Finally, you've caught me. I am eBay boy 29. Love that for you. So all right, so let's go back and tell some sort of Zune history here. Yeah. I did way more research for this than I needed to and found that basically none of this story was what I expected. So I'm curious if this all matches what y'all remember. Because it's not what I remember. But I think we have to go back to like 2003, just to like set the scene a little bit. At this point, Apple obviously is like dominant. There are a lot of other MP3 pairs out there, but Apple is like the one. The stat I found was that Apple had somewhere between half and 75% of the digital media player market and 70% of digital music sales. So like it was winning. 2004 was also the first anniversary of the iTunes store, which was later than I remembered for all of that happening. iTunes is going very well. 2004 Apple launches the fourth gen iPod and the iPod Mini. They had click wheels. Microsoft at this point has nothing, just nothing. Well, they had Windows, Media, Store, like they had launched a store. But there's MSN Music. MSN Music, but they had launched like a DRM store. With a bunch of music labels. And they were trying to do a very Microsoft thing. Yeah. Right. Which is like, we're not going to make anything. We're going to let other stores use our DRM and then ecosystem of players and software will interface with Windows. Then that will be good. And in a very different world than the one that the iPod totally dominated that like could have maybe possibly made sense. But it like immediately didn't seem to work. But just in setting this in, I have two clips I want to play for you. The first is from G4 TV, doing a comparison of the best MP3 players on the market. And I would just, I would just like to play this for you. Okay. Well, a Fossy and new Gen Sharp shooters have just arrived. And they're looking to take over. Now as they say, this town ain't big enough for two of them. But the iPod ain't going out without a fight. Which can only mean a showdown. This newcomer from Banham. He's only packing a measly two gigs. Passed with a Phillips HDD 100. I said he's like a slower than a horse and mud. Spoiler alert, the iPod wins. That was even the good iPod. That was the weird third gen with the red buttons over the wheel. Yeah. And then the other one I want to play for you is Steve Jobs. This is at the introduction of the iPod Mini in 2004. And he did the thing he always does where he like puts up all the ugly ones on a screen and then explains why there's this better. And he inadvertently perfectly describes the MP3 player market. So let's just check this out. The high-end flash players, if you pay $200, they hold about 60 songs. If you pay close to $100, they hold 30 songs. And people either do one of two things. They either get a new memory card for it. Or they put it in the drawer and don't use it. They also have a really bad user interface. Well, we are going to introduce the second member of the iPod family today to go after these guys. And it's called the iPod Mini. Kind of a fair description. Like Steve Jobs, good salesman, but he's not lying. About what was going on. You had either these like, you were either on CDs or you had mini discs or you had like flash drives or you had like, I had it spinning hard drives because that was fancy. I didn't know that was fancy until just now. But it's like, it's the iPod and then mess for like years. And then simultaneously, Microsoft has launched the Xbox, which worked. And is like Microsoft's kind of first real consumer hit. And so Microsoft is like, I would say Windows PCs were a consumer hit. Sure, but it's like, it's a hardware product that Microsoft did all in on its own. It was the like most Appley consumer product it had made that people liked. And so within Microsoft, there is the sense of like, okay, there's more we can do here. We can blow this out. This is like a thing we know how to do. We're going to go be a huge consumer company, which is longest running team I can take on inside of Microsoft. Every two years, they're like, we are a consumer company. Would you like to use Microsoft Teams? And it's like, guys, no, I will never like to use Microsoft Teams for the record. The Xbox is really interesting in this context as well, because it was a Skunkworks project led by an exact same name Jay Allard, who basically was allowed to not use Windows. You're just reading my notes for me. Guess who takes over the Zoom project? Our boy Jay Allard. So Jay Allard, they start working internally on a project called Zoom with Toshiba, which had been making these devices. Do you remember a thing called the gigabit? This is an MP3 player. Any confidence that I wrote about the gigabit in my end? I got nothing on gigabit. This video I think is from Toshiba's booth at CES in 2006 when the gigabit came out. This is the only place I've been doing. That's right. Let me just quickly play you a commercial at the gigabit. See if it jogs your memory. Yes. This is the most 1990s in your life. Oh my god. Yeah. Get your beat going. This is great. People doing hands-stands. Where does this ad meant to run? You don't know. I've been transported to make a list of file formats right next to a guy doing a headstand. I don't know what this is. That's a zoom. That's what you're talking about. Yeah. Oh my god. This device is the basis of the... Yeah. 4,000 photos. Right in the butt. All right. Okay. All right. You get the idea. I'm not sure I get the idea because we've ended up with a word that's cool. Look at that Windows button. See that one as well? Yes. This is what I mean. Microsoft was building this like weird ecosystem around its operating system. And the idea was that all of these devices would work with it. And it just never happened. This software was called Portable Media Center. Yeah. And if there was a piece of software that was ever not going to make it... Portable. We know it's Portable Media Center. One thing that's really interesting because this is the turn for J-Allard. This is like fragmentation and ecosystem like craziness at its highest peak. Microsoft is like, we'll make the software. Everyone else can make the hardware. Someone else will make the service. And we'll just sit there and collect taxes from everyone because everyone has to run Windows. This worked to some extent with Windows. It never worked here. For years Steve Jobs would say, no, you have to integrate everything. And I think what Microsoft let J-Allard do was take runs integrating the products. Right? That's the Xbox. That's exactly right. So the one last fun fact about the Gigabit 2006 CES Bill Gates gets up on stage and launches this thing. In the course of doing other stuff, but this was like a meaningful announcement for Microsoft. But so as they're launching this with this video, Microsoft and Toshiba are also working behind the scenes to absolutely just kill this. Which is the most Microsoft thing. Can you imagine just being the cracked out like Circuit City Shoppers agent who like watched this video and was like, that's it. That's it. Like a month later, he was super wrong. Yeah. So this thing comes out and then literally over the course of 2006, it becomes increasingly very obvious that Microsoft is making some, everybody starts calling it an iPod killer. Right? Like that's the thing. It's obvious that Microsoft wants to do this. The Zoom originally leaked through the FCC as the Toshiba 1089. Oh yeah. But for some reason, everybody instantly understood that this was Microsoft's thing. This was like, it was so clear. This is what was coming. This is the time that gadget history. I was at and gadget then. And we would publish these FCC filings. They actually, because there were so many leaks that came out of the FCC, there was a rule change made at the FCC. So companies could keep their filings more secret for longer. Oh wow. Like this is the height of gadget blogging. Right? The iPods out. Digital cameras are having a moment. Like gadgets as a category have not yet been subsumed into phones. And like Microsoft is doing an iPod killer was like, there's nothing better than this. Like every day we wake up and we're like, here's one more lick of information about the Microsoft iPod killer. So this is my favorite part is in June of 2006, Microsoft says on the record specifically, it is not planning on making an iPod killer. And a month later it launches the zoo as it gets, like it starts telling everybody that it's doing an iPod killer. And apparently all the other companies, the Toshiba's and creatives of the world, were pissed about this. Because as soon as this came out, all their partners who had been working on this software and building stuff on these platforms were totally blindsided by this. And this is such a like classic big tech company story. Like I thought so much about the Google Pixel history and thinking about this. Like, oh, we built this big platform. Everybody super invested in it. We convinced them all to not make their own software and use ours instead. And now we're going to launch a flagship device. So this is again, having the big ecosystem versus the integrated product. It comes up over and over again. And what's interesting is Microsoft is always at the center of this debate. Is Microsoft going to make its own PCs? Well, eventually they had to. Because the ecosystem made everything sheep and crappy and lost the apple at the high end of the market. So they had to hire one guy, and I've been a to go and fix it. There's a really famous email from Bill Gates around the time of the iTunes store. Where Bill Gates is like, why do we suck? Like basically it's like one of the greatest emails in tech history where he's just like, how did this happen to me again? Yeah. Can I actually just read you this entire email? Yeah, Bill Gates is very good at email. So this is April 30th of 2003 at 1046 PM. Do that whatever you want. 146. That's delivered. And there are, let's see, one, two, three, four, five, six, seven people on this email, which is a lot. It says Steve Jobs ability to focus in on a few things that count, get people who get user interface right, and market things as revolutionary are amazing things. This time somehow he has applied his talents in getting a better licensing deal than anyone else has gotten from music. This is very strange to me. The music company's own operations offer a service that is truly unfriendly to the user and has been reviewed that way consistently. Somehow they decide to give Apple the ability to do something pretty good. I remember discussing e-music and us saying that that model is better than subscription because you would know what you were getting. With the subscription, who can promise you that the cool new stuff you want or old stuff will be there? I'm not saying this change just means we messed up. At least if we did so, so did real and press play and music net and basically everybody else, spoiler alert, they all messed up. Now the Jobs has done it. We need to move fast to get something where the UI and rights are as good. I'm not sure whether we should do this through one of these JVs or not. Do I have any ventures? Yeah, there you go. Which is I think where the Toshiba thing starts to happen. I'm not sure what the problems are. However, I think we need some plan to prove that even though Jobs has a bit flat footed again, we move quick and both match and do stuff better. I'm sure people have a lot of thoughts on this. If the plan is clear, no meeting is needed. I want to make sure we are coordinated between Windows, DMD, MSN and other groups. And that's how you know it's like that. So mad. Yeah, like I want to make sure I'm coordinated between the multiple silos in my company that hate each other. But the whole plan here is just, this is literally, this is April of 2003. This is the beginning of this whole thing. And he's just like, I don't know what to do, but we have to do the Apple thing. Yeah, that's it. That's the whole line here. But anyways, okay, so fast forward, we're back it's the summer of 2006. So it's taken them three years. Yeah, there's three years here. And they are just starting to tell the world that they are building an iPod killer. And I just, I want to read you some quotes from two things that I found. One is a billboard interview that Chris Diedensen, who was the GM of marketing for MSN Entertainment. And he said the ability to connect to the different devices is a key part of the strategy. Whether it's a portable media device, or a phone, or the Xbox or media center PC, the ideas you can access your entertainment from anywhere. He also said it's going to be, quote, a family of hardware and software products. Like, Zoom was not a media player. Zoom was like an entertainment universe that Microsoft was trying to build. Keyword trying. Or at least one marketing guy said in one interview. Let me give you another one. This is Robbie Bach, who ran the entertainment and devices division for Microsoft. He's the guy overseeing all of the parts that put this all together. He did a presentation to financial analysts in July. So this is after it comes out. He's talking to all the money people. And he says Microsoft will be involved in the hardware, the software, and the services. We think that's important to produce the number one thing that has to happen in this marketplace, which is a great customer experience. And we have to tie those things together in some ways like we have in the Xbox world, where the hardware software and Xbox Live service, we have tied things together. So again, all of this is tying stuff together. And then he goes, and that's why Zoom is important. And it is the way we're going to differentiate ourselves because the experience of having Zoom in that connected environment is going to be a dramatically better experience than you get just from having a portable music player. The ambition is as big as the world here. We're going to build everything and it's all going to be called Zoom. But this is like, division here is huge. And it was like, the Zoom was supposed to be the first thing in this, like, I think the way I've come to understand it is like the sort of device ecosystem Apple ended up building between like the iPod and the iPhone and the iPad and sort of all the services that wrap around them is like, that's just all right here. Like that's the stuff Microsoft is trying to do. And it was going to be Zoom. That was the thing. Bill Gates came to CS every year. This is when CS was like a really big deal. And he would give the keynote and he would basically be like, we're going to put a PC in your living room. And so they apply that same strategy to personal media, portable media center. Well, they try to make it social, which I think is really fascinating. And I think that like one of the Zoom features we're going to talk about is the thing where you could send music to people. But they like really understood the network effects of making this stuff sort of cross human. In a way that like the iPod just wasn't like none of these MP3 players were like social devices. Like you had yours and you'd handed to other people. But like you having an iPad didn't make my iPod more interesting. Now this was the age of mixed tapes and CD burning. Right exactly. And your friend writing little messages in sharp, but you know the little thing. And I just opened like a CD case from that time period, not that long ago. And it was like my best friend from high school who stole my best friend today. Just going like for the love A. And I was like, oh, that's great. Do you remember the smell of burning a CD? Yes. Oh, yeah. It's very visceral. It's gone. It's like you will never smell that again. No. Yeah. But yeah, that was the time. I like Apple understood that music was intensely personal. And Microsoft thought of music is a way to get a PC in your living room. And like just like radically different approaches to this whole problem, like the Holy Co system. But like if you boil all of that down, it is the right idea. Right. And I think Microsoft's whole problem has been it can't figure out how to make products for regular. That remains its problem today. But I think like it was just fascinating to me to see all of this. And it's like, OK, this is 2006. Then Microsoft is like the big 30,000 foot idea was the right one. Like what if we make all this stuff social? What if we connect at all? What if we become as much a sort of consumer services business as anything else? It kind of worked. Just not for Microsoft. But the other thing that I found is that there was a real interest in the zoom early on from labels because they wanted leverage over Apple. Which at that point was so powerful and so big that all these labels which had like really appreciated what Apple brought, which was the like better than privacy or better than piracy experience, was too powerful. And there was a sense that like we need to have some leverage back. Right. They wanted more of a cut. They wanted variable pricing in the iTunes store. So they wanted songs. I think eventually got it where some songs should be 79 cents and some songs should be about 29. Right. So they wanted the ability to do pricing like they could do in stores. And then what they really wanted, which Apple never gave them, which we really wanted, was a cut of every iPod sold. And Sony desperately wanted this. Like desperately desperately wanted a little bit of every iPod sold. Like a little just a little cut off the top. And they could they thought that if they could build up the zoom or whoever else they would have the leverage to get this. You know who got that deal? Microsoft. Of course. Microsoft offered that deal. Yeah. So it was it was it was UMG in particular, a university media group that picked that flight and won it. And so one of Microsoft deal was to give hardware revenues with labels and artists. Fascinating. Didn't work. I have a really great quote from Doug Morris, who is the CEO and chairman of UMG at the time. He said these devices are just repositories for stolen music and they all know it. So it's time to get paid for it. That's really what this is about. Like that is just that's the music industry side of this whole story. So they're like, we want somebody other than Apple to be big so that we can make everybody pay us more money. Kind of worked. And then Microsoft made that deal with UMG and then said it would make the same deal with other labels too. But UMG at that point was like UMG on the terms. Yeah. So one other moment in the run up to this that I thought was really interesting is on August 1st of 2006, the New York Post runs a story that like panics everybody in all of us. Because again, we're in this moment where like lots of information is out. Product hasn't launched. Still don't know a lot of details. And this story essentially said that Microsoft was a planning to delay the video stuff that it was going to do on its iPod killer, which made people nervous because video was supposed to be one of the like big reasons to get something that isn't an iPod. And then the other thing, Microsoft was telling the entertainment industry that one of the things it was going to do was give away music and support it with ads. And people did not like this. They hated it. Like the entertainment industry is like absolutely not like, Microsoft is trying to get away from the especially in video. They'll like get pay for episodes of TV shows or pay for a movie or whatever. And they wanted to just essentially do a streaming thing. Right? We're like, we're going to be free streaming service and we're going to support it with ads. And all the same people who really wanted competition for the iPod did not want competition among ad buyers. And so it became this became a whole thing and people started to freak out. And they're like, okay, Microsoft is blowing up this model that they've promised this is going to be better for us. Turned out it was fine. This is it didn't work. It didn't work. It is a fun counter theory of like, what if Microsoft did like, what if the zoom had like really hit? A lot of what you're describing here is Microsoft being so early to good ideas that they couldn't execute them. Yeah. The zoom had Wi-Fi but it wasn't streaming. Right? It was just for sync on your own local network and it killed the battery. So all of this like we're going to do ad stuff was you had to sync your zoom. And then it would like download ads to your zoom. It's just like none of this is correct. And then you fast forward later and Spotify is like dynamic ad insertion and podcast. Like they can do all this stuff because it's streaming it instead of transferring it to big computers. Right. Yeah. This whole set of stuff that works on over the internet doesn't work. But the cloud does not exist. Microsoft Microsoft has never gotten the sense of timing. That's I mean that's right. It's life. It's always too late or too early to something. It's never it's never just on time. Yeah. We should say that. We should take a break here and then we're going to get to the launch and what happened after. But first I just want to commend Microsoft because it launched a website saying our products is coming soon and it was coming zoom.com. Oh yeah. No I know. And I think that's very good. And I also would just like to play you the very first zoom ad which started as a video at the bottom of that website. And if either of you can explain to me what this ad is and why it exists, I'd really love that. Challenge accepted. Oh boy. Oh I accepted too soon. This is that really Tweet 2006 era. Oh my god. You know. Is that like a bird? Oh it's a bird. It's two little birds. It's a bird. Yeah. And one of them just catches fire. It's on fire and it's hanging. Oh no. Wow. Oh no. And now it's a different color. Go and it's on fire again. Why is everything on fire? It literally lights the suit. Brand on fire. It's on fire. It's very good. It's very good. This is going to be a reference to squirting in the future. I know it's coming. You don't even know. We have to take a break. It's on fire. Yep. Yeah. We said squirting and now we're taking a break. We'll be right back. Yeah. At Betweik Casino, stake 20 pounds and get 150 free spins for new customers. 18 plus, TizenC's apply. Bet the responsible way. gambleaware.org. All right, we're back. So, November 2006, the Zoom launches. I'm going to read you the specs. It costs $249.99. It's a reasonable price for what it was at the time. It came in white, black, and brown. The brown. Brown, objectively the stupidest color, but also the one I love the most. It's, excuse you, it's the best color. It had a 30 gig hard drive. It had an FM tuner, which loved it. It had a three inch screen. It had Wi-Fi, which was a big deal for reasons we should get into. One of the main features was that you could send tracks to other zoons nearby. Sort of a like proto-air drop kind of situation. But the best part was you could play, if I sent you a track fee, you could play it three times over three days. That was it. And you like, what was the future cost? It was called squirting. Okay, you could squirt the tracks to each other. Literally in the marketing materials. So, squirting. Okay, this is what I was trying to figure out. Because everybody decided it was called squirting. But I could not, for the life of me, figure out if this was like the official name of the feature or if this is just like a funny joke that took off. But you're telling me, like, Microsoft believed it was called squirting. And the, this is awful. Was the squircle. No, no. Right, this is where this is where it all came from. But like straight up, they're like, yeah, we've built the sharing system. Again, the music industry deeply involves. Right? So, that's where you get this crazy DRM, where it's like your player is monitoring how much you're off and you're playing songs, and then disabling them. And okay, that's how did you get through all of that? The same people, who lit a bird on fire, squirting, we're like squirting. Yeah, and all they're doing, all they're doing over and over again, is they're trying to differentiate the zone from the iPod, but then he hit burbing, he edger, edger, by being weirder, so you get brown, you get squirting, he burns on fire, squirting, not good, burns on fire, undecided. I think the idea of being able to like wirelessly share music with your friends is very cool. The way they did it, though. But literally, like, as soon as you do the three plays over three days, things, you've just heard this story. Like, I mean, like at that time, we weren't really doing the whole streaming thing, right? That wasn't a thing. So, all of this is based on files. That's what I'm saying. They had all these red ideas, but to execute them, they had to literally move files around the world. This was the, this was the age where I actually gave a shit about curating my MP3 collection. This is why I changed as a perfect piece of software. What on earth were you curating it? Bad. It was just, no, I was not doing it there. I had my own little folder, and like, everything was named, it's own little thing on my little part. We're using ID3 tags? Listen. We got to talk later. This explains so much about you. I was going to ask when you first said iTunes is a perfect piece of software. If you were the guy who was going in and filling in, all day long, all the metadata, yeah. Oh, no. Anyway. Does this surprise you, let me lie down? No, not at all. Not at all. But like, the whole thing about like the way you would share music is that like, someone had the file. And so then you're getting the file and you're building it. It's like collecting music Pokemon. Or at least that's how I viewed it when I was in high school. So the idea that you send it for three days went three plays. That's just also not how teenagers listen to music. No. You get that one song. Well, the goal was that they would get you to buy it, right? Those ideas that you'd share it, and then you'd be like, I love this song. And then you would be like, I will not spend that in any sense. Which again, in an internet world, good idea. It's just that the whole, it requires a bunch of pieces to work that didn't really work. I don't think that ever even turned out to be the right idea. Now what happens is you share a song, and you listen to it, and the artist gets point half a cent. The shirt, right? Which is something. Like it's just a different, we've come to a different place. But the idea that you're gonna share something, and you're gonna get a little taste of it, and then you're gonna buy it. But also, it's like, teens. Maybe. Teens are like always gonna be huge in making music culture just because they're insane. Yeah. But like, did we have money to do any of this stuff? No, I had no money, and I had no digital money. What am I gonna do? Ask my mom like, Mom, I need to buy this good anthem song off of, no, she's never gonna approve that, even if it's 99 cents, absolutely not. So like, I just don't think that ever really worked. And like, if you think about how teens listen to music, I think one play was like what? Half the song file for Zoom, it was like a minute 30. I'm never listening to a minute 30 of a song. I'm sitting with my headphones, very emo, and in my teenage emotions, just listening to the same song, 400 times a row. So. That's continued. We haven't even launched the Zoom. We haven't even launched the Zoom. So two Microsoft's credit. There were two ways you could get music on the Zoom. One was, well, three, one was piracy. That was what everybody did. There was also the Zoom marketplace, which was just iTunes, but with less stuff. That seems to general consensus. What if iTunes, but some of the songs weren't there, is the Zoom marketplace. My favorite thing about the Zoom marketplace was, it was like a, like a David Buster system, where you paid real money to get Microsoft points, and then a song was 79 Microsoft points, which was the rough equivalent of a dollar. That's like, what are the perfect things? 79, what did it get? 79 Microsoft points. I don't know. This is my theory is they wanted it to sound cheap. They wanted the number to be lower, but they had to have the price the same. So they just, it was, it cost the same, but they were hoping that like the psychology of it, saying 79 instead of 99 would make you want to do it instead. But the other thing, there was a subscription music service. You could pay 1499 a month for Zoom pass, and you could subscribe to music. And at that time, no one wanted that. And it's actually very funny to read the coverage now because over and over and over people are basically like, why would you want to stream music? I want to own my music. I don't want to just pay to listen to music. My music library should be my music, and we have just done culturally such a 180 on that in two decades since. But like genuine kudos to Microsoft, it was way out in front of this idea that like maybe we can just charge you once and you can listen to all the music that you want. Wait, so I think I know why. As somebody who wrote a lot of blog posts about the Zoom, back in the day, again, this thing had a Wi-Fi connection, but it wasn't a streaming device. It was just, it was the only way to describe this is like we lived in the file system era. Like you had to know about your file system. You had folders, like you were just doing it. And so yes, there's a subscription service, but you were like picking what songs you wanted, syncing your Zoom, maybe wireless, but it's still having to sync, moving files over, then you would like send them back. They would expire if they, if you're like, you were offline for two months. Like everything about the subscription service was incompatible with like real life. Yes. And the reason people are like, I wanna own my music is because it was so fitinky that obviously owning your music was better. And then no one could take it away for all the stuff that people would say. And eventually when you get to Spotify, it's just streaming. So it's not that you have the music, it's you can just go to the store and listen to whatever you want all the time, which Zoom music service could not offer you. Right. Because you were just on your Zoom with whatever files were on your Zoom. And it had a super limited set of music because it's like the number of people you can get to sign up for a subscription music service in 2006 is pretty small. So I think you're right, but it was like, but again, my overarching theory of the Zoom is increasingly like Microsoft was absolutely in the right place at absolutely the wrong time. It was too late for some things. It was too early for some things. And it like it missed by a mile, but like a mile in a series of inches. Do you know what I mean? Okay, so there was a bunch of other stuff that came with it. One of my favorite things about the Zoom was the Super 2006 list of accessories. You could buy a tape deck adapter for the Zoom that would plug into the headphone jack and then into the tape deck of your car, which like that speaking of things that make me feel high school feelings, the tape deck adapter was the stuff. It had a car charger, it had a dock. Everybody liked the headphones, which were magnetic and so the two backs would stick together in the earbuds. People were very excited about that. Yes, thank you. Lots of enthusiasm. It also came preloaded with a bunch of content, which I did not remember. There were nine preloaded albums, three preloaded film shorts, 12 music videos, and then just a bunch of rock posters and images. Santa Gold was on the list, I guess, Ratatat, I think was there. September 2006. So it was a lot of indie pop stuff, especially, they really made an emphasis on having lesser known music. They wanted to expose people to cool music via the Zoom, which I think is a cool idea. Microsoft, for your sound, by the way, has kind of notably good taste in music. I made a lot of ads with really good songs in them. So this thing comes out in November, the reviews mostly very bad. Yeah, you were adding gadget and just had a review unit. Do you remember this at all? Oh, I remember. You have to remember, like this is the iPod killer. Yeah. And in those days, iPod killers get announced, left and right. But this was Microsoft. They're doing it. They've integrated it. You got J Allard, his big personalities running this team. So like we've been talking about, the reviews were not great. And pretty much everybody had kind of the same theory that we've been talking about. Let me just play you a montage we made of some of the Zoom reviews. So let's zoom. It is Microsoft's answer to the iPod. And the question is, can it take a bite out of Apple's dominance in the music industry? Starting today, Microsoft is trying to take a bite out of Apple's enormous success. So we're iPod guys. Yes. Have you seen anything in this that we make a switch over? No, not enough for me. Not sure if it's something I'd be interested in because of the size of the hard drive, but I mean, all the features on it are pretty neat. It does a couple of things that are a little bit cooler than the iPod, but a lot of things that probably aren't. The cool things has a radio in it, if that means anything to you. But the real cool thing is it has Wi-Fi. So that if you have a Zoom and I have a Zoom, we can trade music. I actually have to go over and say, hey Miles, can you beam me your song? Right. And then I can play it three times. And then if I want to buy it, I can buy it. So that's how it sort of works. But here's the part that's not so cool. If you have both songs on iTunes, on Apple, for example, doesn't play here. You are limited to regular, unprotected MP3s, any of you that can't exactly change this. It's hard to explain. Zoom's new online music store only offers about two million songs. iTunes has three and a half million. Rather than simply purchasing a single song like you would anywhere else, you must purchase blocks of credits that you can then use to download music. Why can't we just pay for a single song? We're also not big fans of the included earbuds that feel cheap and sound bad. On the upside, we do like the large vibrant display, and the menu system is very simple to navigate, but that's about it. Why don't they get some decent design people and make things look better? Oh, it's clunky. It's clunky, so I know how to. No, that's tough. Yeah, people were not psyched. And a bunch of that was from that digital trends review that was just ruthless about the whole thing. It was also just so... We didn't know how to do it back then. Yeah. It was the first gadget of all time. It just made it so much more brutal for her to be like, and it was bad. I really appreciate it. Oasis are writing like Walt Mossberg, which all of us tried to do. Or faking the local news. And then we all eventually developed some new moves to our credits as well. But literally everyone was like, this is the first time anyone has ever reviewed a gadget. What should we do? I guess we're just gonna look, we're gonna do the fake Midwestern accent, we're gonna look dead on the camera. I wanna say, this is very bad. It is funny to remember that in retrospect, the anticipation of this thing was super high, and people were really optimistic that it might work. We know now, it didn't, and the Zoom is a punchline now, but that whole year from this thing leads to the FCC to the launch in November. The stakes just keep getting higher, and people are like, this thing might work, it might be huge, this might be as big as the iPod. And it's hard to rewind your brain, or if you're younger to even understand what gadget culture was like back then. There were no phones. Phone ecosystems did not exist. Engaging is about it, we're the first gadget blogs. So everyone was having these experiences for the first time, which is crazy to think about now. Like there was not tech YouTube. So this was, oh, the battle's being joined by the big dog, apples the underdog, the empire's gonna strike back. Here we go, and then this thing is just a sensational flop. It's so funny. Sensational flop. And then I came back from the land of feature phones and just going like, oh my god, Japan is in the future. Our phones suck. And I come back for like, I think my first winter break, and my friend has the Zoom, and he's like whipping it out of this pocket. And he's like, I got a Zoom. So first of all, shout out to CNET, which gave the Zoom an eight. Wow. I'm so relieved that that's the truth. But I think I can sort of explain the reviews in two and gadget stories. And Neil, I'm curious if either of these jogging memories for you. On November 13th, 2006, Ryan Black posts a very long blog titled, Installing the Zoom, dot, dot, dot sucked. Yeah. This is before the review. And it's just a long, basically running diary of trying to set up the Zoom software. And I think this is the story of the Zoom, right? Like for all the ideas it had, for all the things like, all right, every bit of getting this thing to work was a disaster. And everybody hated using it, which ultimately was like, killed it. So then two days later, he posted the review, and it is ruthless. Like it, he just didn't like the Zoom at all. I mean, let me just read you a bit from the very beginning. And he says, we've got things we like and things we don't. Rough edges to go right along with the well thought out niceties. We came away underwhelmed and not at all surprised. And why the expectations were for Microsoft to deliver a Microsoft player and system, maybe not too shabby looking, but not very usable and definitely bug-ridden, which is a brutal burn of Microsoft, but also true. But everyone hoped Microsoft had got it right this time. Aschewed patterns of old and gotten a fresh start with new blood willing to think about things from outside the state culture. But that just wasn't the case. It's a Microsoft product through and through. Yeah, brutal, brutal, brutal, but also pretty telling. I do love that Ryan still wrote in the Royal Wii. That was a real thing, the way we would. We'd change that later. So let me just remind you of some things people did not like about the Zoom. Some you in particular need that will find very fine. It didn't support plays for sure. You just couldn't use Microsoft's DRR platform. On the hands. Cool. Everybody had a lot of feelings about file formats. This is like a thing that I became very nostalgic for doing the research is like everybody had a bullet list of the file formats that you can put on this thing. And then we're mad about the two that it didn't support. It was delightful. Did it not support AAC? It did not support AAC. The entire IT Instortion in Compatible Strait. That's right. And people were very upset about it. It didn't support the Mac, which wasn't like a giant deal for a Microsoft product at the time, but people were still bummed. It didn't have podcasts. In terms of video, it only supported MWV. Only. That was the only one. Drove people nuts. So this thing, again, it's like there's so many things about it that were almost there. And none of them were there. The other thing a lot of people said to your point at the very beginning, everybody wished it had the click wheel. Like everybody was like, we have figured out what works here and it is the click wheel. Why is anybody doing anything else? Fascinating. And it's like Apple patent number 607. Right. Let me just read you one more quote from a review. This is from Digital Trends, which gave it half a star. Wow. It says the Microsoft Zoom is one of those products that you will want to avoid at all costs, at least this first generation. In comparison to other media players on the market, the Zoom offers no clear advantage. It has an audio and video library with less depth than iTunes, while the player itself has fewer features than offerings from Apple, Samsung, or Creative. Microsoft tried to do so much and didn't actually do very much at all. It's like a wild outcome of this device. Truly fascinating. And also if you bought something for the Zoom, you couldn't play it anywhere else. Very good. So here's a really interesting thing that this middle zone, Apple did exactly one thing well. Like a really funny thing about the iPod is every iPod was essentially the exact same product, except for the one iPod shuffle that had no screen and no buttons. That one was different and that didn't work. But like the iPod, the iPod, and then the iPod mini and the iPod Nano, same interface, same menus, same wheel, played some music by the end they added snake. And every year, and I've talked to Tony Fidel who ran the iPod project at Apple for years, they just made it look different. And Microsoft was like, we'll do half of everything. Half of everything is like the Microsoft story and so, so many ways. They didn't listen to Ron Swanson when he said, whole ass thing, you know, half ass, multiple things. They didn't listen to Ron Swanson. So despite all of that, this thing eventually became the most popular non-Apple media player, which I guess is like, isn't it? It's because it's Microsoft. Yeah, it's like saying it's the most popular non-Google search engine, like, congratulations. Yeah, there's that, but it's also like at the time Apple like try to pretend its competition was like sandisk. Right, you know, I'm like, whatever guys. Yeah. So I'm just gonna, I'm gonna blow through the history. We will, the, the Zoom HD was like peak Zoom, but I just have a fun, a bunch of fun notes about what happened and how Microsoft tried to really make the Zoom happen. Cause it hit like 10% market share. And that was the highest I've ever got, right? So if you're Microsoft, you look at this and you can either say, we're at 10% market share, oh no, this thing sucks. Or you say we're at 10% market share, let's like poor fuel on the fire, see if we can really make this right. That's what Microsoft decides to do. So they did things like, they launched Zoom 3.0, the big software update in 2008, and they tried to juice sales by giving owners free Wi-Fi at McDonald's. Yeah. This is their big promotion. If you guys are Zoom, you could use Wi-Fi at McDonald's. To squirt one song. To squirt your song. Oh no. You could go squirt it by the way, the Zoom 8E came out and you have 500-Joy divisions. Joy divisions. Yep. Which worked. Steve Josh Coykin and his boots. This is right around the same time, Microsoft appointed 200 different people as Zoom masters. Oh yeah. And it gave them all a bunch of like Zoom swag. There's a lot of Zoom swag out in the world. Like a surprising number of people have Zoom t-shirts still. There's that one guy famous we got as Zoom tattooed. We covered every ounce of his existence in a gadget. Oh my. I've been using it for years later. I think they went back to him and are like, are you still having it? Yeah. That's great. What you saw is it? You didn't cover it up. It's 2025. I don't know what happened to the gentleman. If you're out there, get at us. We'd love to hear from you. But Zoom tattoo guy was a character on the page of Zoom. Oh yeah. Gismata. Oh yeah. So it's all it's kind of happening. And then another thing I had forgotten was, do you remember when all the Zoom's failed? No. So December 31st, 2008, all the Zoom's failed. Because it was a leap here. And the Zoom's internal clock was not prepared for a leap here. It's wide to Kate. It's wide to Kate. And so it eventually fixed itself 24 hours later. But they also had a software thing you could do to update it. But it did not understand the idea of a leap here. And so they all just broke. And that's one of those things that I think you never really come back from reputationally. And Microsoft never did. So 2009, the Zoom HD comes out. Microsoft discontinues the old one. But already by then, this is 2009, it's over. Right? Everybody decides to get out of it. Game stop, which had been selling Zoom's decides to get out. But yeah, what has happened by 2009? My phone's. It's all over. So right. So at this point, the iPhone is out. Smart phones are like ascendant. And very famously, this is the time at which Microsoft makes very clear that it thinks all of this mobile stuff is nonsense. Let me play this is from 2007. This is a Steve Balmer. This is a classic bomber. This is a Steve Balmer clip talking about the iPhone. In the case of music and entertainment players, Apple absolutely has a preeminent position. We said we want to be in this market. There's a lot of reasons. By their synergy with other things that we're doing, we think we've got some unique innovations, particularly what we're doing with community, with wireless networking. And we came into the market, a market which they are very strong. And we took, I don't know, I think most estimates to say we took about 20%, 25% of the high end of the market. We worked down at some of the lower price points, but for devices, $249 an over, we took, you know, let's say about 20% of the market. So I feel like we're in the game. We're driving our innovation hard. And we're not the incumbent. He's the incumbent in this game. But at the end of the day, he's going to have to keep up with an agenda that we're going to drive as well. What? Do you think he ever thinks about that? And this is a same interviewer. Later, he was like, we $500 for a smartphone. He laughed at the iPhone. He laughed at the iPhone. He laughed at the same interview. So this is Bomber doubling down on the Zoom after the iPhone came out. That's where it all falls. You're going to have to keep up with the Zoom with the iPod that you are rapidly cannibalizing with the iPhone. You have absolutely immediately destroyed. So this happens by 2011, Microsoft is just completely out of the business. It just decides to stop doing this. The iPod Touch is out. Fun fact, for a long time, people are out there being like, where's the Zoom Touch? We want the Zoom Touch. And that was... No. When you say people, Zoom heads. Zoom heads. There were some Zoom heads. There were some Zoom heads out there. I just want to put everyone back into this mindset. Yes, now phones are out. Android is on the rise. You are starting to get the real fanboy wars in gacha culture. Like fandoms around these companies are starting to form in a way that maybe get iOS versus Android now to some extent, even if that's calm down. But back then, you had like team Microsoft. Like we started the verge and we had forums. We called it the Microsoft tribe. Like we were in it. And people wanting a Zoom Touch was like, we want you in the game against Apple. And now it's just kind of like, well, the app store is going to kill everything. Like it was just such a different moment. It was partially also because, I was still in Japan at this point in time. And the iPhone was not like coming over right away. And so the feature phone makers there were like not at all. They were kind of balmery about all of this happening. But they were all also integrating music, right? Like I remember when you put music on all those feature phones. You could play music on all of them. You could pay for your subway on all of them. That was like the coolest thing. I was like, I can pay for things with my phone. Like this was back in 2007, 2008. A lot of people in Japan didn't see any for kind of reason to get a phone. So I remember I had an iPod touch and a Japanese feature phone. Yeah. And I had them at the same time. And for a long time, that's a lot of people in Asia did. They would have the iPod touch or an iPhone. And they would have their actual feature phone because these things had been like, they called it the Galapagos effect because it had been so evolved to fit one society's actual particular needs. So like you saw these devices just kind of like, equal long, longer in Japan. But eventually everyone just got a smartphone. And it just happened. And I think even in that transition, it was clear that that was where it was going to end. It was like, this might take a while to get there, but ultimately it's pretty obvious that these two things are one. I held out for a really long time. I didn't get my first iPhone until 2012 because I was just double-fisting a iPod touch and just for the apps. And then my Japanese phone, because I could do everything on these two things. And I was just like, I have no desire for an iPhone. And then once I got the iPhone, I did a little song. I called it my iPhone song. I was like, I got an iPhone. I got an iPhone. I'm walking down the streets of Ginzango. Like, iPhone, I got an iPhone. I'm so happy. And I was like, bye. So Microsoft spends this whole time ignoring the existence of smartphones. Crazy out Microsoft. But also, no, they put the honeycomb launcher on Windows Mobile 6.5. That was the thing I had to contend with. Is a centerplanger that you just said? Sure did. Sure. They sure did that. But at the same time, they're also like getting out of the Zoom business. And they all blamed each other, which I thought was very funny. So all the product people blamed the marketing people for making insane ads about birds that didn't explain what the Zoom was. Yeah. Always Zoom tattoo guys considering getting in tattoo of the flaming birds. I just want to give you an update from the Twitter. Oh my God. All the product people blame the marketing people, the music industry people blamed Microsoft for not executing well. Microsoft blamed the music industry for not promoting Zoom enough. Everybody, there's just this like years long blame game all the way up until 2015 when it fully dies. And we're gonna take a break. But first, I just want to play you the last hurrah of the Zoom, which was guardians of the Galaxy. Oh, what? It made a comeback and it was something special from 2017. Hey. Kevin found this free in a junker shop so he'd come back to the fold someday. What is it? It's called a Zoom. Whatever was listening to on Earth nowadays. It's got 300 songs on it. 300 songs? Oh, 100 songs? Oh my God. Yeah, when you become a punchline in Guardians of the Galaxy in 2017, it's a tough thing. Oh my God. So that was the end of the Zoom. It didn't miss by much but it also missed by a lot. All right, we're gonna see one more rick and then we're gonna come back and we're gonna do the version history questions. Be right back. The world moves fast. You work day, even faster, pitching products, drafting reports, analyzing data. Microsoft 365 co-pilot is your AI assistant for work. Built into Word, Excel, PowerPoint, and other Microsoft 365 apps you use. Helping you quickly write, analyze, create, and summarize. So you can cut through clutter and clear path to your best work. Learn more at Microsoft.com slash N365 co-pilot. All right, we're back. So on every episode of version history, we have eight questions we ask. We're gonna go through them all. Question number one, what was the best thing about the Zoom? Neil, you go first. Okay, it was almost nothing. But, it's not the Zoom itself. Okay. The interface of the Zoom, they didn't call it that back then but it was the beginning of the Metro Design Language which carried fourth in the Windows phone which carried fourth into Windows itself. And now everything is kind of Metro, like everything looks like the Zoom interface and they got that idea right. They executed it totally wrong and it was slow and impossible to use. But that was the best thing about the Zoom. Yeah, I mean, that was gonna be my answer to you, is the home screen. I think that the typography-based home screen that is actually designed, because the Apple thing was purely, it just looked like a file system. It just wasn't a file system. Like Microsoft actually tried and I appreciated that. Do you have a different answer? Slightly, because I also agree that that was actually the first thing that I recall, my eye about the Zoom, but don't laugh at me. Brown was the right choice. No, we're close. Brown was the right choice. It's because it was different. And like it gave it a different feel. But there's other colors. No, there are other colors, but like I think when I was thinking of the iPods of those days and seeing the bright colors of those iPods, it gave me a different feel. This gave me more of like, I mean, when you feel it, it doesn't feel looks, but when you look at it in someone's hand with the Metro design, it just like, ooh fancy. I just say, having, I had probably not touched the Zoom in 15 years. And then I got this one and pulled it out and my immediate instinct was like, oh, this is kind of nice. Like it's like nice to hold. Kind of, it kind of feels like an old. In a way that even iPods were never really that nice to hold. They were very like sharp and angular. And like they were beautiful pieces of machinery, but they weren't like comfy. In a way that's just like that. It's kind of comfy. And I look like, you all can feel whatever you want. You're playing soon. All right, the market spoke. The market is sweet. 20, 2025 Pantone color. What is it? Mocha Moose. Red. We're so back. All right, question number two. What was the worst thing about this year? There's so many things. V got to pick one. I think the fact that you couldn't use it as a hard drive back then was like a really big one for me as like a deciding factor why I was not going to jump off like team iPod at that time because just, I just always had a bazillion different hard drives and flash drives on me. And again, I cared about my music library curation. So the fact that I couldn't actually do that, not enough. Not to neilize degree of caring about my music library curation. But also I thought they did the album art well. That was like my pet peeve. Just finding the correct album art for my music library curation, but also not up to neilize standards. It's just a text. It's how these are high standards. It was high. It's a, I don't like filling out the meta in WordPress. Why would I fill out the meta? It all comes through 30 years later. We're still battling about meta data. So you think it's just, it's just the hard drive thing. That was that was one thing. But then also I just never understood why I didn't use Windows media player. Like they created a whole other software for it. Yeah, it's really true. All right, question number three. Oh wait, you didn't say what the worst thing was. Oh, it was by far the software. Like there's a zoom itself. And then you're like, you have to use the software on your computer and all of that was like a mess. Yeah, that was going to be my answer to you is the trying to get music from my computer to the zoom. 400 times more complicated than it felt like it needed to be. Yeah, whereas like at some point, Apple you just dragged the thing and it's probably fine. All right, question number three. Would it have been a bigger hit if Apple made it? Yes. The obvious answer is yes because they did. They did. It's called the iPod. I'm saying if Apple made the zoom with all the ideas of the zoom, could it have pulled it off? No. And because they looked at all the ideas for the zoom and just rejected them out of hand. Steve Jobs famously wrote thoughts on DRM and basically just like roasted the music industry for even thinking that DRM was a good idea. They eventually caved on subscription services, but they knew the technology wasn't there at that time. Right. I've got to assume there was a meeting at Apple like every six months about like should we do a music subscription and everybody's like, well, no, it's impossible. Because of the file based DRM that they had at the time. Until streaming happened, I don't think subscriptions were ever on the table for Apple. Yeah, all these ideas were like good and they were too early and they were like not the technology was not there to support them. And Microsoft was looking for an edge. So it did all the stuff Apple wasn't doing, but Apple wasn't doing that stuff for a reason. And this isn't just like Apple was always right. It was there was one singular figure at Apple who Apple doesn't have this kind of attitude anymore. But Steve Jobs would be like, I can't make this as good as I want it so we're not going to make it at all. Like it's just not going to happen until it's good enough for me. Right. And that was also at the time Apple was so powerful in the music industry that it's not like it couldn't have done these things. Yeah. You end up choosing not to do these things and that's the only reason you don't do these things. Yeah. You agree? Yeah. No. The Apple Zoom doesn't have a great ring to it. No, the Apple Zoom doesn't have a great ring to it. But like, like, Niela said at that time, I just think they would have been like, we could do it, but we won't. Okay. New question. Do you think a brown iPod would have sold? You know what? Yes. Because they would have chose the correct. No. I've had that brown iPod would have sold. That would not have sold. That did not fit. But see, like, that would have never happened because it just didn't fit into the design language of the colors that they chose. Yeah, I sure remember this is, I always talk about the local news tests on the Vergecast. Like, they were just doing stuff to try to get coverage on the local news because that's what people were watching back then. There wasn't a YouTube, whatever. Like, you needed some like gimmicky morning zoo crew anchor to be like, and there comes some brown. Like, like, literally they were doing things to attract that kind of attention, whether or not anyone had ever bought the brown one. Whereas Apple would just be like, it's skinny now. And like that would work. It was just a very different time to try to attract attention to these products. Totally. All right, next question. If you could go back and make it yourself, what would you do differently? Obviously, the answer is lots of things. But I'm going to make you pick one. If you wanted to make the Zoom work, give me one thing you would have changed. Neil, you go first. I would have made it do even fewer things. Interesting. Right. If your big bet is that you buy a Zoom and you pay this fee monthly, and you can make subscriptions work, you just got to finish that thought. And then maybe you are competitive with Apple because you're saying, look, instead of buying all this music from iTunes, which we're not doing anyway, but it plays MP3, so that's fine. Instead of buying all this music from iTunes, where you just won fee and you get 20 songs a month and you just download them and you're good to go. And like, they didn't ever finish that thought. Instead, they were like off doing, squirting, like, whatever they're doing. Yeah. We're going to an explicit tag on this podcast. This is crazy. What about you? What was your change? The software, I would make it easy to use because like, you know, just think about like what the whole thing about Apple is. Right? It just works. It's easy to use. Like your tech-addled grandma could figure it out. The fact that there were stories talking about how hard it was to install. I have ADHD. I do not have that patience to go and sit there and be like, I want this to... Most people are just going to give up and go like, oh, that's not worth it. So if you could just make it easy to use, I think people would have, you know, forgiven it a little bit, the lesser library and the lesser catalog because you could use it. Instead, it's just like, it's not easy to use and it's not a click wheel and it's not all these things. So your answer is I would make it good. No, it's to be more specific. I think I would just make the software good. Good. Yeah, yeah, make the software good. Big idea from Visa. Yeah, just don't suck. That's why I do. This is a time and software where Apple was really focused on making beautiful software and everyone else was like, here's some stuff. And like Apple and its all attitude, we live in the world that Apple created. Even Microsoft, you know, every Microsoft event is like, look at what our designers did. And like, this was their first attempt at it. And I think they were like, it should be pretty. And then no one was like, does it work? I mean, like, you know, even if you just wanted to, to Jerry Vrygett, I'm bringing Windows Media Player back. You could have just done it through there. And that's something people, even if it's finicky, they're familiar with. They know it. It's not like a whole new thing that they have to learn for this thing that most of their friends don't already have, don't already know. So you could at least just remove that barrier of like having to learn a new thing and enter an ecosystem where their friends aren't already there for. Yeah. My answer is I would have gone, I would have made a bunch of really dumb deals with the music industry to make the music industry like me more. Right? Because I think if you can solve, if you can make squirting, oh, God. Rough into like an actually good and useful feature, you have a really cool like virality thing that you can start to do with the Zoom. If you can convince the music industry to let you give more music away or sell it cheaper or whatever, like I would just try to be the best friend of the music industry, even if it costs me for a while, because it's like, that's how you become very powerful. I also would have gone in on podcasts, but that's 20 years of hindsight that no one had then. Because podcasts were like two years old and no one was listening to them. But that was like, if you want to be the audio player, which I think it wanted to be, it could have been early to that in a way that actually might have worked. That's what I've written. It wouldn't have worked. Yeah. It's a real hard to be like, let's look back at the Zoom and see what would have worked. The next question is, what feature of this thing should every current version have? What would you pull off of the Zoom and put on two media players or even your phone in 2025? FM Radio. That's mine too. We're on, we're on, we're on, we're on, we're on, Wow. Wow. That was the feature I carried the least about. I have come all the way back around on radio. Like, I listen to radio in the car sometimes now. Or it's just like, you know, it's nice. It's when I just get in. And something is on. I'm going to listen to that for 10 mins. This is such a theme with David. Alright. So for us, it's FM Radio. It's not for you. I actually think that the thing that should be on everything Because I think the Zoom passed with the smartest idea they had. Kind of. It actually is on everything now. Next question is the one I have thought the one I have thought about the most with the Zoom. And is there an alternate timeline in which this thing was more or even more successful? Can you like fanos snap Apple away? No, but you can ship it earlier or ship it later. But you can't just take Apple off the board. No, then no. Maybe I think it's timing. Like if they had figured it out, I just think Microsoft's inherent curse is timing. They always have some good ideas, but never at the time where they should have the ideas. So like I think maybe there's a timeline where it comes out. And maybe it's early enough that the iPod is not caught on yet. And some people just for whatever reason, people really love this thing. Still in 2025. So maybe, maybe. But that was the only thing I could think of as like, if it had been four years earlier, and you know Gates sends that email the day after the first iPod and not the fourth time. I think he sent a lot of emails, so I had to see Johnson had that tone. He's done it again. Yeah. What do you guys do? Like, can't we make these things? There's a lot of those emails from Bill Gates over the years. I don't think so. I think Microsoft as a company during that time was organized around essentially business development. Like the thing Microsoft did was make deals. And the thing Apple did was make products. And so I'm saying you got to take Apple off the board because every other company was also like a deal making company. And so you get this weird halfway DRM label licensing blah, because that's what the lawyers and the MBAs wanted. Question number seven, could you reboot it now? Oh, they definitely could. You're so far away from the reality of the thing that if Microsoft came out and like, the Zoom's back like, and did a bunch of guardians clips, like no one would remember the product. But like, why would you? I mean, I guess you could in the sense that there's like a nostalgia for that time period right now like the Canon G7 X is a thing. I thought we like got rid of point and shoots. And then the children are just like, no, it was better back then. So maybe you could have people rebooting it from a sense of nostalgia. But do I think they could reboot it and it would have the degree of success that the Razor Marble Roller foldable phones have right now? No. Right. Yeah, I mean, I think like could you could you make and sell like limited edition 20th anniversary Zoom and 20th anniversary Joy Division with 300 versions? The CEO of San. Make five thousand of them. Could you sell five thousand of them? I think yes for sure. Is there a world in which the Zoom becomes like a hit product? I don't think so. I think a lot of people really like the idea of having a dedicated music player again. And I don't think that many people actually want a dedicated music player again. Yeah, because even your phone, if you get rid of all your apps, it's going to play music. Right. Like I think about the car thing that's modified put out that it's like, it's a dedicated gadget for playing music in the way that people play music in 2025. And you're like, oh, intellectually, that's kind of a cool idea. And then you get into the car and you're like, oh, that is just my phone. I did that already. I tend to agree. All right. So last question. Does the original Zoom belong in the version history Hall of Fame? Yes. Yes. Wow. Yes. Okay. And I will say the rubric essentially is just did this thing matter in some important way in the history of the, it doesn't have to have been great or awful or, vastly successful, it just has to have mattered. This is like a case study. I think we've proved in the last however long we've been talking about Microsoft. This is like, if you want to know about Microsoft at this point in time, all you have to do is study the Zoom. And like, you will understand everything about Microsoft from that point in time. So yeah, it does. I mean, it's in the Guardians and Galaxy movie. It's true. It's also in the Big Gang Theory. The Simpsons did it. There's a lot. You could play Doom on it. We found that out. There's the, it kind of hits all the beats. You agree? I agree. I agree with what these had. Like this is just a perfect picture of Microsoft. It's also the tech industry and the entertainment and culture industries collided and their inability to see each other resulted in the Zoom. Like you can just see that like, they don't like each other. Yeah. And the products they want to make and the products they will allow each other to make are brown soon. I'll take your account. So we're putting, specifically the brown Zoom is going. Brown one in the Hall of Fame, specifically. Oh, absolutely. I would, I would even bring that forward to now, right? The, the character of Steve Jobs and the history of computing did a lot of things, accomplished a lot of things. The number one thing that Steve Jobs had that even our currencyos do not have is he understood the artists. He cared about them. He gave a shit. How many times have you seen a clip of Steve Jobs being like, I really cared about proportional fonts and then Microsoft copied them for me, right? And all of that like, we are making tools so that you will make culture and then the iPod is there because I love Bob Dylan. He was able to go to the artists themselves and connect with them and build great products because he respected them. And that Microsoft just couldn't do it for the longest time. They got a little bit better at it. So they're not as good as Apple. And then now you've got the new crop of CEO's they're like, here's what we did. We trained all of our AI and your shit for free. And now we just make it and you get nothing. And it's like, oh, we've lost something along the way. And the Zoom is a case study of like the first glimmer of making it pretty isn't enough. You gotta go get the work. And I think Microsoft, the face points it's so hard, they kinda had to learn that lesson. I like it. I agree. I thought I was gonna have to fight both of you to get it in the office. We're unanimous. This is very exciting. So into the rafters, I don't know, I don't know. The Hall of Fame is gonna need a physical instantiation at some point. We'll figure that out. This room. It might just be this room. All right, that is it for the show. We are done here at V and Eli. Thank you so much for doing this. This was a delight. Put the Joy Division's in a way before something bad happens to it. This is very important. Thank you as always for being there. I was gonna send my kid to college one day. Oh my God. You know, I think you could get $5,000 to that. That's a package. That's a big cost. That's a big cost. Yeah, it's gonna be great. All right, thank you as always for being here with us. As ever, you can watch all of our episodes on YouTube. You can listen to the Merby, you get podcasts. And if you want to support all this, including the purchasing of more Joy Division zoons, the best way to do so is to subscribe to theverge.com. We'll see you next time. Thanks for being here. Will you ever turn it on? I would have to take this sticker off. Okay, so that's a no. Version history is produced by Victoria Barrios, River Branson, Owen Grove, Brandon Keifer, Travis Larchuk, Eric Gomez, Andrew Moreno, and Alex Parkin. Studio support from Chris Strait left. Our theme music is composed by Brandon McFarland. Be sure to subscribe to the new version history podcast feed to get all of our new episodes as soon as they arrive.