Will iPod suffer fate of the Mac?

Apple Computer’s apparent cold shoulder to RealNetworks this week has once again put the company’s “go it alone” strategy in the spotlight.

With the Macintosh, Apple decided to keep its operating system proprietary, licensing it out only on a few rare occasions and keeping control of both hardware and software. The approach has arguably given Apple an edge when it comes to integrating new capabilities such as DVD burning, but the Macintosh also has become a niche player in a Windows-dominated PC market.

Now RealNetworks CEO Rob Glaser and some others see the potential for history to repeat itself in the digital music world if Apple persists in keeping its software and hardware closed. Apple has taken some major steps to avoid past mistakes, notably making the iPod compatible with Windows PCs, dramatically expanding its potential market. iPod sales last quarter helped Apple triple its earnings compared with the same period a year ago.

But that’s a half measure, according to Glaser, who recently quipped that Apple might go the way of the Soviet Union unless it takes a more liberal stance toward licensing its software, specifically the FairPlay digital rights management (DRM) controls that prevent songs purchased through iTunes from being illegally copied.

“Apple’s (market) share will go down if they continue to do this,” Glaser said at last month’s PC Forum. He predicted that customers will say, “I bought an iPod and can only shop at one store. What is this? The Soviet Union?”

Source: News.com