Yes, I work at Microsoft, but I have now had my video iPod for a year and a half and love it. The Zune came out and I wasn't in line to buy one. Why should I? I had everything I wanted with my iPod. At least that what I thought....
Then a job opportunity emerged in the Zune org, so I decided that I had better buy one and at least develop some opinions on it. I didn't care for the fact that the hard drive was 1/2 the size of my 60GB iPod. I didn't care for portions of the overall experience of the Zune player (but know that realistically, the software will just get better over time). What I LOVE about the Zune however, is the Zune Pass for marketplace.
Let me qualify this a bit. I HATE digital rights management (DRM). I've had all kinds of problems with it in the past and as a result, all of the music that I have downloaded to the Zune and iPod was music I ripped from my CD collection. At the same time, there are services out there that allow you to subscribe for a monthly fee and download and listen to all the music you want. These services use DRM to basically insure that you are still a paying member of the service. I have always ignored these services assuming that they would only have a small library of old artists that no ones cares about any longer, but when I bought my Zune, they offered me a free trial of the marketplace subscription. I'm now in my second month as a paying customer and couldn't be happier. I've been discovering all kinds of new artists and staying abreast of all of the latest music to hit the airwaves. Today I found the new single Tarantula from the Smashing Pumpkins. I liked it so much that I bought the single even though I can listen to it as much as I'd like as long as I'm a member. Downside? I realized after purchasing the song that it is DRMd (grrrr).
Steve Jobs makes the argument that "customers don't seem to be interested in it" [subscription services]. I couldn't disagree more, but then again if you had asked me 3 months ago, I would have concurred. My request is that we should keep DRM limited to the subscription services and then like Apple, charge a bit higher of a fee to purchase songs or albums without DRM restrictions. I would use the subscription service to discover music and then purchase the music that I want to "keep" over the long haul. If Microsoft can add this feature (non-DRM'd music purchases) to their marketplace, I think they have a service that trumps iTunes.