The Vergecast - Version History: Zune

Episode Date: November 2, 2025

In 2006, Microsoft came for the iPod's throne with an innovative MP3 player called the Zune. It had a bunch of features the iPod didn't: WiFi, music sharing, a bigger screen, a beautiful UI, even an F...M radio. And to hear Microsoft describe it, it was even kind of a social network. Nilay Patel and Victoria Song join David Pierce to break down why, despite all that, the Zune never really took off. And why it came in brown. If you like the show, ⁠⁠subscribe to the Version History feed⁠⁠ to make sure you get every new episode. ⁠Subscribe to The Verge⁠ for unlimited access to ⁠theverge.com⁠, subscriber-exclusive newsletters, and our ⁠ad-free podcast feed⁠. We love hearing from you! Email your questions and thoughts to ⁠vergecast@theverge.com⁠ or call us at 866-VERGE11. Learn more about your ad choices. Visit podcastchoices.com/adchoices

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Starting point is 00:00:00 Hey, it's your friend David Pierce, and I'm here to tell you before we get started that this is the halfway point of the first season of version history. We're four episodes in, we got four more to do, and we're already working on the next batch. And like we said at the beginning, these first eight episodes are all going to be on the Vergecast feed, the Virgin History feed, and the YouTube channel. So you can watch them and listen to them anywhere and the next several, however you've been getting them, you can keep getting them. But after the first eight episodes, they're going to leave the Vergecast feed, and the only way to get the podcast is going to be on the version. version history feed. It'll keep being on the Virgin's YouTube channel. So if you're watching there,
Starting point is 00:00:33 you're good there. But please, please, please go subscribe to the version history feed. Like, I'll just level with you. That is the feed that we care most about growing, especially in these early days. And that is the thing that we can grow in order to continue to be able to do this and to grow the show and keep doing new things with it. I care deeply about how that feed is going. I hate looking at numbers and I look at that number more than I am proud of. So if you can go subscribe to version history wherever you get podcasts, it will mean a great deal to me and all of us, and it will make sure that you keep getting every single episode as soon as it's released. I will stop giving you my speech now, and we will just get into version history. Thank you,
Starting point is 00:01:12 as always. Enjoy the show. 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 apiece. Worst case scenario, you have like a 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,
Starting point is 00:01:37 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 Zune, and it is going to kill the iPod. From the Verge and Vox Media, this is version history,
Starting point is 00:01:50 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 Zoom did not, in fact, kill the iPod. Support for the show comes from Retool. Too many companies run critical operations
Starting point is 00:02:18 on duct-taped spreadsheets, Slack workflows, and whatever else they could cobble together. Not because they want to, but because building internal tools means weeks of waiting on someone else's backlog. That's where Retool comes in. Build custom internal tools
Starting point is 00:02:32 just by describing what you need. Proms something like, build me a revenue dashboard on our Salesforce data. And Retool actually builds it on your company's data and your cloud with enterprise security built in. Go to Retool.com slash Verchcast. We all need to retool how we build software. All right, we're back. Let's talk Zune.
Starting point is 00:02:56 V Song is here. V, hello. Hello. Nelai, hello. Two very different Zune experiences in the room, which I'm very excited about. Did either of you have the first Zune? No, I was too poor. Did you want the first time?
Starting point is 00:03:09 I did want one. Yeah. Yes. Because, so Zoom comes out in 2006. I'm a young, bushy-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. That thing was expensive, too. That's tough.
Starting point is 00:03:30 So, you know, I wanted something that was different. Like, I had my, I really did not like iTunes back then. I still don't. I was going to say. iTunes was. iTunes was never good. So, you know, my audio... We're already beefing.
Starting point is 00:03:45 iTunes was a perfect piece of software. At least like 2006 iTunes. Absolutely not. Absolutely not. No. Anywho, yeah, so like my audiophile friends were all like into the Zoom and they had it. And I was like, oh, it's brown. That's special.
Starting point is 00:04:00 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 the size of two hands. Oh, you were fancy. You had a hard drive.
Starting point is 00:04:20 Oh, yeah, it was the whole thing. I went for the big one. It was either get a minotisk player. Then they looked like a fake CD player. Uh-huh. But they just played the tiny little ones and there was one that you could strap on your belt. Yeah, that was awesome.
Starting point is 00:04:30 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. And now is my MP3 player I had a Rio. Okay. The little purple one It was like ergonomics
Starting point is 00:04:44 So 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
Starting point is 00:04:52 That was slanted. It was. Oh, I do remember this. So they tried 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 SD cards or whatever. It was great.
Starting point is 00:05:04 I loved it. So we, you and I both brought Zunes today. Mine, I just bought. I bought a brown iPod on eBay. Was this your Zoom? Like your OGZoon? Or do you bought this one for the show? I bought it on eBay for the show.
Starting point is 00:05:16 It was $59. Wow. 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 it's brown. It's still a brown.
Starting point is 00:05:32 It's still super brown. I just want to say genuine kudos to whoever, like, 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 but I would like to read you a complete list of the playlist on this zoom that I bought on eBay it powers up I mean I'm impressed it it turns on it no battery scrolling no nothing no what's the charger it's so got it is um Microsoft's version of the 30 pin charger yeah oh god it's good stuff um there's one playlist called Christian songs we have Christmas we have Easter we have first
Starting point is 00:06:07 and we have Zune gems. Zun gems. And there are like 30 songs in Zune Jems 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. It takes forever to scroll around this thing.
Starting point is 00:06:24 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. This is brutal. I'm assuming only hardcore Zoon nerds are going to listen to this episode of version history. But for some reason, you stumbled into it.
Starting point is 00:06:41 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 and down 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,
Starting point is 00:06:57 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 muscle memory.
Starting point is 00:07:09 20-year-old muscle memory just gone. I was like, why no scroll? Oh. Right. Right. It's the defining interface element of that time, is Apple invented the click wheel. Microsoft couldn't use it except but I have patent on it.
Starting point is 00:07:21 So they made it a circle, and it's a swipy touch circle, and it has the exact problem that Apple solved with the click wheel, which is that it's slow. Yep. And they just ran right into it being slow. And it's also,
Starting point is 00:07:35 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 Zoom is insanity. Yeah. That said, I go to the home screen and you mentioned the typeface. The typeface.
Starting point is 00:07:54 Lovely. Lots and lots of Zoom persist to this day across the entire industry. Yeah. The Zoom design became a lot of what Windows became and then eventually what everything became. There's lots of Zoom 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, Neely, you also brought a Zoom.
Starting point is 00:08:14 A special, special Zoom. A very special Zoom. So this is a period of weird exclusives across the industry. Somehow the Zoom team decided that what would save the Zoom in 2008 is producing 500 limited edition Joy Division zoons. You know, Joy Division famously the biggest band in the world. Everyone has a T-shirt, very few people have the records. It was like, basically how that goes. So they were like, we're just going to put the unknown pleasure sticker on a Zoom,
Starting point is 00:08:44 and then people will be confused, and they'll buy that. But then we have to make it real. So they hired Peter Saville, who was Joy Division and New Order's 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 it,
Starting point is 00:09:06 shipped in because it's so outrageous. So I have the whole thing. 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 opening. And then you pull out the actual Joy Division Zoom.
Starting point is 00:09:24 This is Zune 80. It's like the second generation. I have number 154 500. I've never taken the sticker off. I've never turned it on, but it has the full Joy Division catalog on it. It says warning explicit content on it, which is, Deeply hilarious. And on the back, again, the unknown pleasure logo, it says Peter Sable for Joy Division,
Starting point is 00:09:41 the documentary Limited Edition. And it's just a Zune 80. See, this is nice. My brown one is like kind of plasticy and gross. This one is like... The Zune 80 was really, really nice. You could beat somebody up with this thing. I have not looked on eBay to see how much it's worth now.
Starting point is 00:09:54 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 $500,000. Oh, how much did you pay for it? I paid list price. It was probably like $3.50 or something. Okay, I have found one for sale.
Starting point is 00:10:10 It is $2,09. 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'll see.
Starting point is 00:10:21 We're going to wait for it to keep... I mean, you have it, though, in the original packaging. Yeah, that's true. Unopened on. With the sticker on. Who knows if this battery works? I feel like there's like a 40% chance this is you just trying to like drum up interest for your own eBay listing. Finally, you've caught me.
Starting point is 00:10:37 I am eBay Boy, 29. Love that for you. So, all right, so let's go back and tell some sort of Zoom 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.
Starting point is 00:11:06 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.
Starting point is 00:11:31 2004 Apple launches the fourth-gen iPod and the iPod mini They had click wheels Microsoft at this point has nothing Just nothing They had Windows Media store Like they had launched a store There was MSN music
Starting point is 00:11:45 MSN music but they 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 an ecosystem of players and software will interface with Windows,
Starting point is 00:12:06 then that will be good. And in a very different world than the one that the iPod totally dominated, that could have maybe possibly made sense. But it immediately didn't seem to work. But just in setting the scene, I have two clips I want to play for you. The first is from G4 TV
Starting point is 00:12:20 doing a comparison of the best MP3 players on the market. And I would just like to play this for you. Okay. Well, a posse and new gen sharpshooters of just a rock. and they're looking to take over. Now, as they say, this town ain't big enough for two of them,
Starting point is 00:12:35 but the iPod ain't going out without a fight. Which can only mean a showdown. This newcomer from Bannam, he's only packing a measly two gigs. As for this Phillips, HDD-100. The city sligger slower than a horse and mud. Spoiler alert, the iPod wins. That wasn't even the good iPod.
Starting point is 00:12:58 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 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.
Starting point is 00:13:13 And he kind of 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
Starting point is 00:13:29 memory card for it or they put it in the drawer and don't use it. They also have 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 like, he's not lying about what was going on. You had either of these, like, you were either on CDs or you had minidiscs or you had like flash drives or you had like I did spinning hard drives because that was fancy. I didn't know that was fancy until just now.
Starting point is 00:14:06 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 it on its own. It was the like most Apple-y consumer product it had made that people liked. And so within Microsoft,
Starting point is 00:14:33 Microsoft, there's 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 the longest running theme I can think of 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 skunk works project led by an executive named Jay Allard, who basically was allowed to need to. not use Windows. You're just reading my notes for me. Guess who takes over the Zoom project? Our boy, Jay Allard.
Starting point is 00:15:08 Yeah. So Jay Allard, they start working internally on a project called Zune with Toshiba, which had been making these devices. Do you remember a thing called the Gigabete? This was an MP3 player. Vagely. I'm confident that I wrote about the Gigabit in my engagement. I got nothing on Gigabee.
Starting point is 00:15:25 This video, I think, is from Toshiba's booth at CES in 2006 when the Gigabit came out. This is the only place that video came out. Yeah, I think that's right. Let me just quickly play you a commercial at the gig of beat. See if it jogs your memory. Yes. This is the most 1990s thing you've ever seen. Yeah.
Starting point is 00:15:45 Get your beat going. This is great. People doing handsstands. Where was this ad meant to run? I 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.
Starting point is 00:16:05 That's a Zoom. That's what you're telling me. Yeah. Oh, my God. This device is the basis of the... Yeah. 4,000 photos. Right in the bud.
Starting point is 00:16:16 All right. Okay. All right. You get the idea. I'm not sure I get the idea because we've ended on the words, Cool design. Yeah. Look at that Windows button.
Starting point is 00:16:28 See that Windows button? Yes. Ah. 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.
Starting point is 00:16:43 Yeah. And if there was a piece of software that was ever not going to make it, it's Windows Portable Media Center. One thing that's really interesting because this is the turn for Jay 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.
Starting point is 00:17:08 And this worked to some extent with Windows. And it never worked here. And for years, Steve Jobs would say, no, you have to integrate everything. And I think what Microsoft let Jay Allard do was take runs at integrating the products, right? That's the Xbox. That's exactly right.
Starting point is 00:17:25 So the one last fun fact about the Gigabute, 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, watch this video and I was like, it's...
Starting point is 00:17:53 That's it. Like a month later, like, I 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... Everybody starts calling it an iPod killer, right? Like, that's the thing. It's obvious that Microsoft wants to do this. The Zune originally leaked through the FCC as the Toshiba 1089.
Starting point is 00:18:13 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 in Gadgett history. I was at Engadget 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 SEC so companies could keep their filings more secret for longer. Oh, wow. Like, this is the height of it.
Starting point is 00:18:36 gadget plugging, 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, starts telling everybody that it's doing an iPod killer. And apparently all the other companies, the Toshibas 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.
Starting point is 00:19:26 And this is such a, like, classic big tech company story. Like I thought so much about the Google Pixel history in thinking about this. We were like, oh, we built this big platform. Everybody's 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
Starting point is 00:19:42 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 cheap and crappy and lost to Apple at the high end of the market.
Starting point is 00:19:58 So they had to hire one guy, Panos Pinae, 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?
Starting point is 00:20:13 Yeah. Can I actually just read you this entire email? Yeah. It's, Bill Gates is very good at email. So this is April 30th of 2003 at 10.46 p.m. Do it with that, whatever you will. 1046. That's deliberate.
Starting point is 00:20:24 And there are, let's see, one, two, three, four, five, six, seven people on this email, which is a lot. 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 for 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.
Starting point is 00:20:50 Somehow they decide to give Apple the ability to do something pretty good. I remember discussing e-music and us saying that that model was 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 the strangest 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.
Starting point is 00:21:13 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. Join 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 us 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.
Starting point is 00:21:34 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 death. So mad. Yeah. Like, I want to make sure I'm coordinated between the multiple silos
Starting point is 00:21:44 in my company that hate each other. But the whole plan here is just, it's, 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.
Starting point is 00:21:55 That's the whole line here. But anyway, so, okay, so fast forward, we're back into the summer of 2006. So it's taking 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 want to read you some quotes
Starting point is 00:22:12 from two things that I found. One is a Billboard interview that Chris Stevenson, who was the GM of Marketing for MSN Entertainment, and he said the ability to connect 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,
Starting point is 00:22:26 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, Zune was not a media player. Zoon was like an entertainment universe that Microsoft was trying to build. Keyword trying. Or at least one marketing guy said in one interview.
Starting point is 00:22:44 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.
Starting point is 00:22:57 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 Zune is important,
Starting point is 00:23:17 and it is a way we're going to differentiate ourselves, because the experience of having Zune in that connected environment is going to be a dramatically better experience than you get just from having a portable music player. Like, the ambition is, like, as big as the world here. Like, we're going to build everything and it's all going to be called Zune. But this is like, the vision 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,
Starting point is 00:23:53 that's just all right here. Like, that's the stuff Microsoft was 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 applied that same strategy to personal media,
Starting point is 00:24:11 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. Yeah. 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 hand it to other people but like you having an iPad didn't make
Starting point is 00:24:36 my iPod more interesting now this was the age of mixed tapes and CD burning right exactly and your friend writing little messages and sharpie on 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's still my best friend today just going like four V Yeah. Love A. And I was like, oh, my God. Do you remember the smell of burning a CD?
Starting point is 00:25:01 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.
Starting point is 00:25:08 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 this whole ecosystem. 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.
Starting point is 00:25:31 But I think it was just fascinating to me to see all of this. And it's like, okay, this is 2006. And 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 it all? What if we become as much a sort of consumer services business as anything else? It kind of worked. Just not for Microsoft.
Starting point is 00:25:52 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 it got it, where some songs to be $0.99 and some songs to be a buck 29, right? So they wanted the ability to do pricing like they could do in stores.
Starting point is 00:26:31 And then what they really wanted, which Apple never gave them, what we really wanted, was a cut of every iPod sold. And Sony desperately wanted this. Like desperately, desperately, desperately wanted a little bit of every iPod sold, like a little, just a little cut off the top. And they thought that if they could build up the Zune or whoever else, they would have the leverage to go get this. You know who got that deal?
Starting point is 00:26:54 Microsoft. Of course. Microsoft offered that deal. Yeah. So it was UMG in particular, Universal Media Group, that picked that fight and won it. And so one of Microsoft deal was to give hardware revenues with labels and artists. Fascinating. Didn't work.
Starting point is 00:27:07 But I have a really great quote from, this is Doug Morris, who is the CEO and chairman of UNG 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. is 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.
Starting point is 00:27:30 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 leading the charge. 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 this. Because again, we're in this moment where like lots of information is out,
Starting point is 00:27:51 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 big reasons to get something that is in 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,
Starting point is 00:28:24 the 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 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
Starting point is 00:28:50 it turned out it was fine. Because 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
Starting point is 00:29:02 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.
Starting point is 00:29:12 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 soon. It's just like none of this is correct. Right. And then you know, fast word later in 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.
Starting point is 00:29:31 Yeah, this whole set of stuff that works over the internet doesn't work. Like the cloud does not exist. Microsoft. Microsoft has never gotten a sense of timing like to save its life. It's always too late or too early to something. It's never just on time. time. Yeah.
Starting point is 00:29:47 Which is sad. 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 comingzune.com. Oh, yeah. I know.
Starting point is 00:30:01 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.
Starting point is 00:30:20 This is that really Tweed 2006 era. Oh, my God. You know? Is that like a bee? Oh, it's a bird. It's a bird. Yeah, and one of them just catches fire. It's on fire and headbanging.
Starting point is 00:30:34 Oh, no. Wow. Oh, no. And now it's a different color. No, and it's on fire again. Why is everything on fire? It literally lights the Zoon brand on fire. It's very good.
Starting point is 00:30:53 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.
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Starting point is 00:32:03 Shopify.com slash vergecast. Go to Shopify.com slash vergecast. That's Shopify.com slash verge cast. All right, we're back. So November 2006, the Zoom launches. I'm going to read you the specs. It costs $249.99. Reasonable price for what it was at the time. It came in white, black, and brown.
Starting point is 00:32:34 The brown. Objectively the stupidest color, but also the one I love the most. Excuse you, it's the best color. It had a 30 gig hard drive. It had an FM tuner, which love it. It had a 3-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,
Starting point is 00:32:55 sort of a like proto-airdrop 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's stupid. And Eli, what was the feature called? It was called squirting. Okay. You could squirt the tracks to each other.
Starting point is 00:33:13 literally in the marketing material, so I'm 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 believes it was called squirting. And the shape was the squircle. Oh, no. This is where this is what all came from.
Starting point is 00:33:35 But, like, straight up, they're like, yeah, we've built the sharing system. Again, the music industry deeply involved. Right? So that's where you get this crazy DRM where it's like your player is monitoring how often you're playing songs and then disabling them. Okay.
Starting point is 00:33:53 But how did you get through all of these marketing departments to be called squirting? We're like squirting. And all they're doing, all they're doing over and over again is they're trying to differentiate the Zoom from the iPod by making it hipper,
Starting point is 00:34:07 by making edgier, by making weirder. So you get brown, you get squirting. Okay, brown good. On Fire. Squirting, not good. Birds on fire. Undecided. I think the idea of being able to, like, wirelessly share music with your friends is very cool.
Starting point is 00:34:22 The way they did it, though. But literally, like, as soon as you do the three plays over three days things, you've destroyed the future. I mean, like, at that time, we weren't really doing the whole streaming thing, right? That wasn't a thing. All of this is based on files. That's what I'm saying. They had all these right ideas. But to execute them, they had to literally move files around.
Starting point is 00:34:38 This was the age where I actually gave a shit about curating. my MP3 collection. This is why iTunes is a perfect piece of software. What on earth were you curating it? It was so bad. It was just, no, I was not doing it there. I had my own little folder and like everything was named its own little thing on my little part of my-
Starting point is 00:34:55 We weren't 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.
Starting point is 00:35:09 Does this surprise you about Eli? 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 on three plays, that's just also not how teenagers listen to music.
Starting point is 00:35:30 No. You get that one song. The goal was that they would get you to buy it, right? The idea was that you'd share it and then you'd like, I love this song. And then you would be like, I will now spend 99 cents. Which again, in an international. internet world, good idea. It's just that the whole, it requires a bunch of pieces to work that didn't really work.
Starting point is 00:35:48 I don't think that 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 sense. Sure. Which is something. It's just a different, we've come to a different place. But the idea that you're going to share something and you're going to get a little taste of it and then you're going to buy it always a pipe dream. Maybe.
Starting point is 00:36:08 Teens are like always going to be huge in making music culture just because they're in 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 going to do? Ask my mom like, Mom, I need to buy this good anthem song off of I. No, she's never going to 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 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 in a row. So, yeah. Let's continue. We haven't even launched the zoo. We haven't even launched the Zoom. So to 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 Zune Marketplace. My favorite thing about the Zune Marketplace was it was like a Davidin Buster's system
Starting point is 00:37:12 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. It's like, what are it? How did they get 79 Microsoft points? 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 costs 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.
Starting point is 00:37:37 But the other thing, there was a subscription music service. You could pay $14.99 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.
Starting point is 00:38:03 But like, genuine kudos to Microsoft. It was way out in front of this idea. 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.
Starting point is 00:38:23 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 was a subscription service, but you were like picking. what songs you wanted,
Starting point is 00:38:39 syncing your Zoom, maybe wireless, but still having to sync, moving files over, then you would, like, send them back. They would expire if the, if, like,
Starting point is 00:38:48 you were offline for too long. Like, everything about the subscription service was incompatible with, like, real life. Yes. And the reason people are, like, I want to own my music,
Starting point is 00:38:56 is because it was so finicky that obviously owning your music was better. And no one could take it away for all this stuff that people would say. And eventually, when you get to Spotify, it's just streaming.
Starting point is 00:39:07 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 running. Right. And it had a super limited set of music because, 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.
Starting point is 00:39:37 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. 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 Zune was the Super 2006 list of accessories. You could buy a tape deck adapter for the Zune that would plug into the headphone jack
Starting point is 00:39:58 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, 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. 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.
Starting point is 00:40:30 Santa Gold was on the list, I guess. Ratatat, I think was there. The most 2006. So it was a lot of like indie pop stuff especially. It was like they really made an emphasis on having lesser known music. They like wanted to expose people to cool music via the Zoom, which I think is a cool idea. Microsoft Ferry's sign, by the way, has kind of like notably good taste of music. They made a lot of ads with like really good songs in them.
Starting point is 00:40:57 Yeah. So this thing comes out in November. The reviews mostly very bad. Yeah. You were adding Gadget and Gadgett had a review unit. do you remember this at all? Oh, it's a huge deal. Like, you have to remember, like,
Starting point is 00:41:10 this is the iPod Killer. Yeah. And in those days, iPod killers get it announced left and right. But this was Microsoft. They're doing it. They've integrated it. You got Jay Allard,
Starting point is 00:41:19 his big personality, is 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
Starting point is 00:41:30 of some of the Zoom reviews. 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. I'm not. Have you seen anything in this that would make you switch over?
Starting point is 00:41:48 No, not enough for me. Not sure if it's something I'd be interesting 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.
Starting point is 00:42:09 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 bought songs on iTunes, on Apple, for example, doesn't play here. You are limited to regular, unprotected MP3s and these are downloaded directly from the Zune marketplace. Zune's new online music store only offers about 2 million songs.
Starting point is 00:42:35 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 to make things look better?
Starting point is 00:43:03 It's clunky. No comment. 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. She was also just so. We didn't know how to do it back then. Yeah.
Starting point is 00:43:19 These were the first gadget reviews of all times. It just made it so much more brutal for her to be like, and it was bad. I really appreciate our. Your choices are writing like Walt Mossberg, which all of us tried to do, or faking the local news. And like, and then we all. all eventually developed some new moves to our credit. But literally everyone was like, this is the first time I've ever, anyone has ever reviewed a gadget. What should we do?
Starting point is 00:43:45 I guess we're just going to look, we're going to do the fake Midwestern accent, we're going to look dead on the camera, and we're going to say, this is very bad. It is funny to remember that in retrospect. Like, the anticipation of this thing was super high and people were really optimistic that it might work. We know now it didn't. And like the Zoom is a punchline now. But like that whole year from like this thing leaks to the FCC to the launch in November. The like the stakes just keep getting higher and people are like this thing might work. It might be huge.
Starting point is 00:44:13 This might be as big as the iPod. And it's hard to rewind your brain or if you're younger to like even understand what gadget culture was like back then. There were no phones. Like phone ecosystems did not exist. Like Engadging Gizmodo were the first gadget blogs. Yeah. So everyone was having these experiences for the first time, which is crazy to think about now. Like, there was not tech YouTube.
Starting point is 00:44:41 So, like, this was, oh, the battle's being joined by the big dog, right? Apple's the underdog. The empire is going to strike back. Here we go. And then this thing is just a sensational flop. It's so funny. Sensational flop. I came back from the land of feature phones and just going like, oh, my God, Japan.
Starting point is 00:45:01 is in the future. Our phones suck. And I come back for, like, I think my first, like, winter break and, like, 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 Zune an 8. Wow. I just sort of leave that there. Classic move. But I think, I think I can sort of explain the reviews in Two and Gadget Stories. And, Neil, I'm curious of either of these jogging any memories for you. On November 13th, 2006, Ryan Black posts a very long blog titled, Installing the Zune. Dot, dot, dot, dot, sucked. This is before the review. And it's just a long, basically running diary of trying to set up the Zune software. And I think this is the story of the
Starting point is 00:45:48 Zoom, right? Like, it, for all the ideas it had, for all the things they got, right, it, the, every bit of getting this thing to work was a disaster. And everybody hated using it. which ultimately is what kills it. So then two days later, he posts the review, and it is ruthless. Like, he just didn't like the Zoom at all. I mean, let me just read you a bit from the very beginning. 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.
Starting point is 00:46:17 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. Eschewed patterns of old and gotten a fresh start with new blood willing to think about things
Starting point is 00:46:35 from outside the state culture. But that just wasn't the case. It's a Microsoft product through and through. Yep. Brutal. Brutal. But also pretty telling. I do love that Ryan still wrote in the Royal Wii. It was a real thing that we'd change that later. So let me just remind you
Starting point is 00:46:51 of some things people did not like about the Zoom. You in particular, any of that we'll find very funny. It didn't support plays for sure. You just couldn't use Microsoft's DRM. Other platform. Yes, cool. Everybody had a lot of feelings about file formats.
Starting point is 00:47:05 This is like a thing that I became very nostalgic for doing the research. It's 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. That's right. So the entire iTunes stores in Cabattel soon.
Starting point is 00:47:21 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 so bummed. It didn't have podcasts. In terms of video, it only supported MWV. Only. That was the only one.
Starting point is 00:47:38 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.
Starting point is 00:47:51 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.
Starting point is 00:48:07 This is from Digital Trends, which gave it half a star. Wow. It says the Microsoft Zune 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 Zune offers no clear advantage. It has an audio and video library
Starting point is 00:48:19 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 kind of a wild outcome of this device. Truly fascinating. And also, if you bought something for the Zoom,
Starting point is 00:48:36 you couldn't play it anywhere else. Very good. Here's this really interesting thing, like 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
Starting point is 00:48:54 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 in so, so many ways.
Starting point is 00:49:23 They didn't listen to Ron Swanson when he said whole ass one thing. They don't have to ask multiple things. Exactly. 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 is. It's just because it's Microsoft. Well, yeah. It's like saying it's the most popular non-Google search engine.
Starting point is 00:49:45 Like, congratulations. You know what I mean? Yeah, there's that. But it's also like at the time Apple, like, try to pretend its competition was like Sandisk. You know, I'd be like, whatever, guys. Yeah. Yeah. So I'm just going to, I'm going to blow through the history. We will, the, the Zune HD was like peak Zune. But I just have a fun, a bunch of fun notes about what happened and how Microsoft tried to really make the Zune happen. Because it hit like 10% market share. And that was the highest it ever got. Right. So if you're Microsoft, you look at this and you can either say we're a 10% market share, oh no, this thing sucks. Or you say we're at 10% market share. Let's like pour fuel on the fire, see if we can really make this work. That's what Microsoft decides to do. So they did things like, they launched, Zune 3.0, the big software update in 2008,
Starting point is 00:50:27 and they tried to juice sales by giving owners free Wi-Fi at McDonald's. This is their big promotion. If you got a Zoom, you can use Wi-Fi at McDonald's. To squirt one song. To squirt your songs. Oh, no. This is also the year, by the way, the Zune 8E came out
Starting point is 00:50:42 and you have 500 Joy Division Zunes. Yep. Which worked. Steve Josh squaking in his boots. This was right around the same time Microsoft appointed 200 different people. as Zune Masters. Oh, yeah.
Starting point is 00:50:56 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 famously got a Zoom tattoo. We covered every ounce of his existence of the gadget. We interviewed him. Years later, I think they went back to him and were like, are you good? That's great.
Starting point is 00:51:15 Wait, he still has it? You didn't cover it up? It's 2025. I don't know what happened to this gentleman. If you're out there, get at us. We'd love to hear from you. But like, Zune Tattoo Guy was a character on the pages of the Aging Dismoto. Oh, yeah.
Starting point is 00:51:28 So it's all, it's kind of happening. And then another thing I had forgotten was, do you remember when all the Zunes failed? No. So December 31st, 2008, all the Zunes failed. Because it was a leap here. Zoonpocalypse. And the Zune's internal clock was not prepared for a leap here. It Y2Ked.
Starting point is 00:51:48 And so it eventually fixed itself the 24 hours later. later, but they also had a software thing you could do to update it. But it just, it did not understand the idea of a leap here. Oh, no. 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 ZuneHD comes out.
Starting point is 00:52:14 Microsoft discontinues the old one. But already by then, this is 2009, it's over. Right? Everybody decides to get out of it. GameStop, which had been selling Zunz, decided. to get out. But yeah, what is, what has happened by 2009? Smart phones. So, right. So at this point, the iPhone is out. Smartphones 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 you. This is from 2007. This is a Steve Balmer clip. This is a classic bomber.
Starting point is 00:52:44 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. want to be in this market. There's a lot of reasons why there's 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 in which they're very strong, and we took, I don't know, I think most estimates would say we took about 20, 25 percent of the high end of the market. We weren't down at some of the lower price points, but for devices $249 and over, we took, you know, let's say about 20 percent of the market. So I feel like we're in the game. We're driving our innovation.
Starting point is 00:53:24 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 the same interviewer later, he was like, $500 for smartphone is crazy.
Starting point is 00:53:41 He laughed at the iPhone. This is all the same interview. So this is bomber doubling down on the Zoom after the iPhone came out. Like that's where it all falls down. You're going to have to keep up with the Zoom with the iPod that you are rapidly cannibalizing with the iPhone. Absolutely immediately destroyed. So this happens by 2011 Microsoft is just completely out of the business.
Starting point is 00:54:01 It just decides to stop doing this. The iPod touches out. Fun fact, for a long time, people were out there being like, where's the Zoom touch? We want the Zoom touch. And that was no. When you say people, would you say it was more than a dozen? There were some Zune heads. Listen, there were some Zoon heads out there.
Starting point is 00:54:21 I just want to put everyone back into this. minds. Like, yes, now phones are out. Android is on the rise. Like, you are starting to get the real fanboy wars in gadget culture, right? Like, fandoms around these companies are starting to form in a way that maybe you got iOS versus Android now to some extent, even though that's calm down. But, like, 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, like, 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.
Starting point is 00:54:58 Like, it's just a, it was such a different moment. It was partially also because, like, 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 also integrating music, right? Like, I remember you could play music on all those feature phones. You could play for your subway on all of them.
Starting point is 00:55:19 You could pay for your subway on all of them. That was like the cool. listening. I was like, I can pay for things with my phone. Like, this was back in 2007, 2007, 2008. A lot of people in Japan didn't see any freaking reason to get a smartphone. So I remember I had an iPod Touch and a Japanese feature phone. And I had them at the same time. And for a long time, that's what 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.
Starting point is 00:55:54 So, like, you saw these devices just kind of, like, eke along longer in Japan. But eventually, everyone just got a smartphone. Yeah, that's how it. It just happened. And I think even in that transition, it was clear that that was where it was going to end. Right? It was like, this might take a while to get there, but ultimately, it's pretty obvious that these two things are one.
Starting point is 00:56:13 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 a just for the apps and then my Japanese phone because I could do everything on these two things and it was just like I have no desire for an iPhone and then once I got the iPhone I did a little song and I called it my iPhone song I got an iPhone I'm walking down the streets of Ginzen going like iPhone I got an iPhone and I'm so happy and then I was like bye so Microsoft spends this whole time ignoring the existence of smartphones great job Microsoft but also um No, they put the honeycomb launch for on Windows Mobile 6.5.
Starting point is 00:56:55 That was the thing I had to contend with. That is a gadget blogger. Yep, that 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 with the Zoom laws. Yeah.
Starting point is 00:57:13 By the way, June tattoo guy was considering getting a tattoo of the flaming birds. I just want to give you an update from 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 Zune enough. There's just this years-long blame game all the way up until 2015 when it fully dies. And we're going to take a break, but first, I just want to play you the last hurrah of the Zune, which was Guardians of the Galaxy. Oh, what? It made a comeback, and it was something special from 2017.
Starting point is 00:57:48 Hey, Kevin found this free in a junker shop, said you, come back to the fold someday. It's called a Zoom. It's what everybody's listening to on Earth nowadays. It's got 300 songs. 300 songs? 100 songs? Oh my God.
Starting point is 00:58:10 Yeah, when you become a punchline in Guardians of the Galaxy in 2017, it's a tough beat. Oh, my God. So that was the end of the Zune. It didn't miss by much, but it also missed by a lot. All right, we've got to take one more Rick, and then we're going to come back, and we're going to do the version of history questions. Be right back. Support for the show comes from LinkedIn.
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Starting point is 00:59:47 We're going to go through them all. Question number one, what was the best thing about the Zune? Nila, you go first. Okay. It was almost nothing. But it's not the Zune itself. Okay. the interface of the Zoom.
Starting point is 01:00:00 They didn't call it that back then, but it was the beginning of the Metro design language, which carried forth into Windows phone, which carried forth 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,
Starting point is 01:00:16 and it was slow and impossible to use. But that was the best thing about the Zoom. Yeah, I mean, that was going to be my answer, too, is the home screen. I think that the typography-based home screen that is actually designed because the Apple thing was like purely
Starting point is 01:00:30 it just looked like a file system like Microsoft actually tried and I appreciated that do you have a different answer slightly because I also agree
Starting point is 01:00:39 that that was actually the first thing that ever caught my eye about the Zoom but don't laugh at me brown was the right choice no it wasn't the right choice
Starting point is 01:00:47 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
Starting point is 01:00:57 the 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 lux, but when you look at it in someone's hand with the metro design, it was just like, ooh, fancy. I will 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.
Starting point is 01:01:19 It kind of, it kind of feels like an adult. In a way that even iPods were never really that nice to hold. They were very like sharp and angular and like, like. They were beautiful pieces of machinery, but they weren't, like, comfy in a way that just kind of comfy. Look, you all can feel whatever you want about your brown zone. All right, the market spoke. Listen, 20-25 pantone color, what is it? Moka Moose.
Starting point is 01:01:43 We're so back. We're so back. All right, question number two, what was the worst thing about the scene? There's so many things. V, you 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 discerful. citing factor why I was not going to jump off like team iPod at that time because
Starting point is 01:02:01 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 Nelai's degree of caring about my music library
Starting point is 01:02:17 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 creation curation, but also not up to Nelai standards. It's just the text. These aren't high standards.
Starting point is 01:02:32 It was high. 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 metadata. So you think it's just it's just the hard drive thing? That was one thing. But then also, I just
Starting point is 01:02:48 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 the Zoom itself, and then you're like, you have to use the software on your computer, and all of that was like a mess.
Starting point is 01:03:09 Yeah, that was going to be my answer to 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 drag 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.
Starting point is 01:03:27 And it's called the iPod. But 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 eventually caved on subscription services, but they knew the technology wasn't there at that time.
Starting point is 01:03:57 Right. Yeah, you'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.
Starting point is 01:04:19 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.
Starting point is 01:04:43 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. Like 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. Yeah.
Starting point is 01:04:57 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 Neil I 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?
Starting point is 01:05:13 Yes. Because they would have chose the correct iPod. No. Do you think 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. You have to remember, this is, I always talk
Starting point is 01:05:29 about the local news test on the Vergecast. Like, they were just doing stuff to try to get coverage on a 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 it comes in brown. Like, literally they were doing things to attract that kind of attention, whether or not anyone ever bought the brown one. Whereas, as a lot of the brown one, whereas, Apple will just make, it's skinny now. And like that would work. It was just a very different time to try to attract attention of these products.
Starting point is 01:06:00 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 each pick one. Like, if you wanted to make the Zoom work, give me one thing you would have changed. Neil, you go first.
Starting point is 01:06:14 I would have made it do even fewer things. Interesting. Okay. 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, we're just one fee and you get 20 songs a month and you just download them and you're good to go.
Starting point is 01:06:45 Right? And, like, they didn't ever finish that thought. Instead, they were, like, off doing squirting, like, whatever they're doing. Yeah. We're getting an explicit tag on this podcast. Jesus Christ. What about you? What would you change?
Starting point is 01:07:03 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. adult 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
Starting point is 01:07:38 a little bit, the lesser library and the lesser catalog because you could use it. Instead, it's just like, ah, it's not easy to use, and it's not a click wheel, and it's not all these things. So, like... So, wait, your answer is I would make it good. No, like, to be more specific, I think I would just make the software... Good. Good. Yeah.
Starting point is 01:08:01 Yeah, make the software good. Big idea from Vsons. Yeah. Just don't suck. That's my idea. This is a time in software where Apple was really focused on making beautiful software, and everyone else was like, here's some stuff. Yep.
Starting point is 01:08:15 And, like, Apple and its whole 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 Jerry, forget, 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.
Starting point is 01:08:41 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.
Starting point is 01:09:11 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 Zune. 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 cost 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. 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. So that's what I would have done. It wouldn't have worked.
Starting point is 01:09:53 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 onto media players or even your phone in 2025? FM Radio. That's mine too. Yeah, we're on the way. We're locked in today.
Starting point is 01:10:12 Wow. That was the feature I cared the least about. I have come all the way back around on radio. Like, I listen to radio in the car sometimes now where it's just like, you know what's nice is when I just get in and something is on. And I'm going to listen to that for 10 minutes. This is such a theme with David. All right. So for us, it's FM radio.
Starting point is 01:10:28 It's not for you, V. What do you think? I actually think that the thing that should be on everything is on everything now because I think the Zoom pass was the smartest idea they had kind of. It actually is on everything now. So next question is 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 Thanos snap Apple away? No, but you can ship it earlier or ship it later.
Starting point is 01:10:53 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.
Starting point is 01:11:13 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 is, 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 iPod. I think he sent a lot of emails. So I had that tone. He's like, he's done it.
Starting point is 01:11:38 again. What are you guys doing? 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, right? Like the thing Microsoft did was make deals. And the thing Apple did was make products.
Starting point is 01:11:59 And so I'm saying you've got to take Apple off the board because every other company was also like a deal-making company. And so you get this weird half. Halfway DRM label licensing, blah, blah, blah, because that's what the lawyers and the MBAs wanted. Question number seven. Could you reboot it now? Oh, they definitely could.
Starting point is 01:12:20 You're so far away from the reality of the thing that if Microsoft came out and like, the Zoom's back 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 G7X is a thing.
Starting point is 01:12:37 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 Motorola foldable phones have right now? No. Right. Yeah, I mean, I think, like, could you make and sell a, like, limited edition 20th anniversary, Zoom?
Starting point is 01:13:02 A 20th anniversary Joy Division with 300 versions? You see what I'm saying? Yeah. Make 5,000 of them. Could you sell 5,000 of them? I think, yes, for sure. Right. Is there a world in which the Zoom
Starting point is 01:13:12 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 they, even your phone, if you get rid of all your apps, is going to play music. Right. Like, I think about the car thing that Spotify put out that it's like,
Starting point is 01:13:32 it's a dedicated gadget for playing music in the way that people play music in 2020. 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?
Starting point is 01:13:50 Yes. Yes. Wow. Okay. Hard yes. And I will say the rubric essentially is just, did this thing matter in some important way in the history of day? It doesn't have been great or awful or vastly successful. It just has to have mattered.
Starting point is 01:14:05 This is like a case. 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 been immortalized.
Starting point is 01:14:24 It was also in the Big Bang Theory. The Simpsons did it. There's a lot. You could play Doom on it. We found that out. It kind of hits all the beats. You agree? I agree.
Starting point is 01:14:33 I agree with what V said. 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, or brown Zoom. So we're putting... Specifically, the Brown Zoom is going to say.
Starting point is 01:14:59 I was going to say, we're putting the Brown one in the Hall of Fame, specifically. Oh, absolutely, the brown one. Okay. And I would even bring that forward to now, right? 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 current CEOs do not have, is he understood the artists. He cared about them. He gave a shit.
Starting point is 01:15:22 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 they're, the iPod is there for because I love Bob Dylan, he was able to go to the artist 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.
Starting point is 01:15:48 They got a little bit better at it, but still they're not as good as Apple. And then now you've got the new crop of CEOs. 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
Starting point is 01:16:04 of making it pretty isn't enough. You got to go get the work. And I think Microsoft, they've face pointed so hard, they kind of had to learn that lesson. I like it. I agree. I thought I was going to have to fight both of you
Starting point is 01:16:16 to get it in the Hall of Fame, but we're unanimous. This is very exciting. So into the Rafters, I don't know, the Hall of Fame is going to need a physical instantiation
Starting point is 01:16:25 at some point. But we'll figure that out there. It's not just this room. It might just be this room. All right. That is it for the show. We are done here. V and Eli,
Starting point is 01:16:32 thank you so much for doing this. This was a delight. Put the Joy Division Zune away before something bad happens to it. This is very important. Thank you, as always, for being here with us. This thing is going to send my kid to college one day. Oh, my God. You know, I think you could get $5,000 for that.
Starting point is 01:16:46 Original packaging. That's going to cost. Yeah. It's going to 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 them wherever you get podcasts.
Starting point is 01:16:56 And if you want to support all this, including the purchasing of more Joy Division Zunes, the best way to do so is to subscribe to the verge.com. We'll see you next time. Thanks for being here. Will you ever turn it on? I would have to take the sticker off. Oh, okay, so that's a no. Version History is produced by Victoria Barrios, River Branson, Owen Grove,
Starting point is 01:17:20 Brandon Kiefer, Travis Larchuk, Eric Gomez, Andrew Marino, and Alex Parkin. Studio support from Chris Shirtleff. 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.

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