Consumers have various options when it comes to purchasing digital media. They can purchase content from iTunes, from the Zune Store or from Amazon.com. All of these options give users the ability to purchase video and audio at similar prices. However, Apple and Microsoft limit their content to their own devices, making it difficult for consumers to try other products. Apple has done this well and has done it for many years. They’ve created an ecosystem that works together. It’s simple to use and it scales effectively. You can purchase a movie from iTunes, view it on your iPod/iPhone and stream it to your TV via Apple TV.
On the other hand, Amazon has a completely different approach — they allow content purchased from their store to be distributed on many supported platforms. However, the experience is not easy or pleasant for casual consumers.
In order for digital media to succeed, content should be compatible with most advanced hardware platforms, regardless of the store it was purchased in. Online video has a long way to go and it is getting challenging to find content that works with certain hardware lock ins.
