tecosystems

On Apple, Real, and the Impact of the Customer Loyalty

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Just got this Macworld UK article forwarded to me by my brother. Detailing the results of the not-so-subtle campaign Real is waging here (interesting that the Real relationship to this site is downplayed to a few links, maybe a bit of foreshadowing?) against Apple for attempting to maintain tight control over the iPod, it makes for a fascinating case study in community behavior.

It’s fascinating because most enlightened music and technology fans would say what Public Knowledge did here – namely, that Apple’s in the wrong here. Or maybe it’s just that I would say that. I think it’s a silly business decision in any case, because if Apple was to open the iPod to Real, they could win kudos for being open and still win because their player is better.

As Sun’s Jonathan Schwartz is fond of saying, open standards are great for laggards and poor for industry leaders, and Apple is proving that point perfectly with its refusal to open the most popular digital music player, the iPod.

But what happened when Real started a petition in support of its efforts? Not what they’d hoped, I think. They got flamed. Big time. And in case you think that it’s just the Macwork UK article revealing its prejudice, News.com also covered it here. You can’t actually view the flames anymore because it seems as if PetitionOnline has turned that off, but we’ll take News.com’s word for it.

So the question then is, why? Why are music fans actively fighting choice, openness, and all of the other things they claim to believe so strongly in? The standard answer is probably that it’s just the traditional zeal of Apple customers manifesting itself. In other words, it’s just a random phenomenon.

But to me, that at once ignores something Apple has done extraordinarily well and something Real has done remarkably poorly, which is cultivate customer loyalty. Apple obviously has had its fans over the years, despite a number of ups and downs, and has appealed on the basis of usability and design. But in the arena of digital music, via iTunes and the iPod, they’ve attracted a whole new type of customer to a device that is expensive yes, but highly functional, easy to use, has an impact on their lives. Whether it’s on the commute to work, a party at a friends house, or flying, iPods are everywhere. And these people are often – I’m exhibit A – not traditional Apple users. But Apple’s done a good job at recruting them.

Real, on the other hand, is maybe known for being an option that people click when they want online music or video, but just as much for having an application that exhibits borderline spyware behavior. A few years ago my PC was dialing the internet unattended at all hours of the night. It took Dell support almost a half hour to figure out that the culprit was the Real media player. It wanted to phone home and had no problem dialing the internet to do so – and this was the default behavior. It has always insisted on running in the Windows system tray – as do too many other applications, unfortunately – and has been difficult to configure otherwise. It’s always been demanding in terms of personal information, and light in terms of what it returns. In short, the relationship Real as had with its customers has been pretty much all about Real, all the time.

The result of this contrast? Flames from iPod fans, even when they’d actually be better off. Go figure, things like community do matter.

UPDATE: Spelling error

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