The great Microsoft-Facebook social alliance

August 11, 2010 | By rush24

In the world of technology, it is uncanny how today’s darlings can quickly become tomorrow’s also-rans. We all know what happened to MySpace, the once social networking behemoth, which turned into a ghost town in the blink of an eye, and is now desperately trying to find a way recapture the magic of the old glory days with little or no success.

With that in mind, a new battle is emerging between the current king of social, Facebook, and the leader of online search Google, as they go head to head to win the hearts and minds of consumers. The notable omission in these discussions is the oft-maligned company Microsoft, which I think will play a bigger role in these battle than most people think.

Techcrunch, last week posted an intriguing article outlining Google’s new strategy to conquer the social web through Google Me. Their previous attempts with products like buzz, and Orkut and the now cancelled Wave, have not gained wide traction with the general public as they had hoped. The article points out that Google will try to attack Facebook’s weakest point, Music, which is basically why some people still stick with MySpace, by augmenting GoogleMe, with their yet to be launched music service. In addition to Music, Google has been been on a buying spree lately acquiring social app maker, Slide and Jambool, a social payments and virtual currency platform, which together with their $100 Million+ invested in Zynga, makers immensely popular Farmville and Mafia Wars games, will constitute the core components of their rumored social network.

Enter Microsoft, at stage left. The tech giant already has a great relationship with Facebook, with its deep integration with the upcoming WP7, facebook docs, facebook chat interoperability with messenger, and search results powered by Bing. This excerpt from a post on the Bing map blog, highlights the social features available on the Bing iPhone app as it relates to social networks.

Do you ever find yourself standing in front of the movie theater trying to figure out what movie to go to? Or how about you are in the car with friends looking for a place to eat. Wouldn’t it be helpful to hear what your friends are saying about a movie, restaurants or a product while you are on the go?…there is a feature called Social search, where you can search through your Facebook and Twitter accounts on your phone and see combined status updates from your friends. If there is an instant answer available, we’ll show you that first, followed by social results.

So what is the relevance of all this? I think the next step is for Microsoft and Facebook to integrate Zune as the default music service. It is a win win for both companies because in one fell swoop, Facebook cures its music deficiency to counter Google music services and to an extent any cloud based iTunes offering, while MS gets its Zune platform exposed to 500+ million users. I find it enjoyable not only to have unlimited music, but also to be able to use the Zunecard to discover new music through what my friends are listening to, browse through playlists of like minded listeners or just have the software recommend some picks for me based on my playing preferences. The Zune HD Facebook app features a button to easily post what the current song being played by user so this could be a good starting point for the venture.

If Microsoft can then add more indie artists unaffiliated with big labels, perhaps make it easy for them to be featured in the Zune marketplace, local event discovery tools and band promos, tour calendar with reminders and notifications when favored bands are playing in the area, a seamless way to purchase concert tickets and top it with lyrics and a karaoke feature that can be easily shared with friends, they will surely have a winner on their hands. GoogleMe with music services and an iTunes cloud based solution will be playing catch up for a long time if not forever.

Please check back tomorrow (Thursday, August 12) for part two and Friday (August 13th) for part three and conclusion of the article.

About Rush24

Rush24 loves everything Microsoft and is fascinated by the influence of technology in everyday life.

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Tagged facebook, wp7, zune

qmt49

That is an awesome idea. Zune could probably take a decent chunk of iTunes' market share if this was implemented. Hope it happens, but you know Microsoft…
Northerngeek

Zuckerberg's an iPhone fan, not saying that it won't happen but Microsoft are, right now at least, focusing on making the Zune a platform for THEIR products, not others. Facebook falls under that "other" category and if MS does decide to spread Zune around as an omnipotent platform they may be better off making an iPhone or iPod application if they could get it approved (similar to Rhapsody)…. that is if they want converts.

Facebook integration is a nice idea, I'd love to see it happen, and I'm sure MS's zune employees would love it, I just don't see it expanding in that direction just yet…

Alternative: In the short term MS could create a Bing entertainment widget for bands and Facebook users to put into their pages- thus gaining exposure but needing no "deal" with Facebook.

Sanshinron

Zuckenberg is currently using android and I don't think that personal phone choice can have any influence on facebook strategy.

Northerngeek

Didn't hear about the recent switch, I was basing it on Techcrunch http://techcrunch.com/2010/06/14/zuckerberg-iphon…

Nevermind though, I see you're right on that one… however it doesn't dispell the other points.

http://www.facebook.com/profile.php?id=698889266 Fred Szibdat

so then let me try. FIrst this article makes a lot of sense. But wouldn't it be kind of stupid NOT to do this deal at Facebook. SInce, umm, the compete with googe, and, oh yeah, Microsoft has an ownership interest?

so your theory that his personal phone choice, would trump the ownership interest, and then he'd stop a great idea that would make him more money? Wow, that personal phone choice is going to be costly. Somehow, I'd think he'd want a Zune Service. Just saying.

Northerngeek

"wouldn't it be kind of stupid NOT to do this deal at Facebook"

If they could snap their fingers and make it happen, sure, but what's to say it won't take years or months of negotiation with record labels?

"so your theory that his personal phone choice, would trump the ownership interest"

That's not my theory and please don't put words in my mouth, Zuckerberg owns 24% of the company, Microsoft owns 1.3% and Accel owns 10%… more than Microsoft yet they also invest in Realnetworks, Walmart etc who also have a hand in digital content distribution. Microsoft paid Facebook $286 million for that 1.3% and to imagine that they can simply roll in and make a deal is so naive it doesn't require addressing as a possibility.

Zune so far has cost Microsoft hundreds of millions if not billions to get to this point, it's only availavle in North America thus far and whilst the idea may be great one day MS has some distance to go before they can think about expanding the platform onto other companies' properties.
Chef Fabrizio

So then you pointing out an iPhone user why? If not to further your idea, that he bases his management deciisons on personal phone choice? And implicity, his use of iTunes. Or can't you think that far with your statements? ANd you think MY idea is naive. But, umm, folks tend to do business with investors. Just saying.

But further, he has an immediate inroad, with an investor, to use their product. And why do you think Facebook uses Bing? Maybe because its the Anti-Google?

ANd umm, wouldn't facebook, HELP MS go global with zune? Or is it more antideluvian thinking to contemplate the other way round.
Northerngeek

"So then you pointing out an iPhone user why?….. And why do you think Facebook uses Bing? Maybe because its the Anti-Google? …."

Pointing out he's an iPhone user: A throw-away comment I made but seeing as you've decided to pitch your argument against it, let's use it as a starting point:
He does base management decisions based on what he wants to use, look at the speed of development of the iPhone application compared to other platforms, and the market share is there as opposed to going with an underdog for little to no reason. Nobody is crying out for music on Facebook and if they were an app could be designed for it- Microsoft could make a Zune app without any partnership- see my first comment.

The investor argument: Facebook uses Bing because MS outbid Google to do so- they paid $286million for the oppurtunity and to serve the advertisements. Besides, at the time the two companies weren't rivals.

"Or can't you think that far with your statements?"
Don't try to insult a person's intelligence, I could go into all sorts of reasons why but really it just doesn't help your argument at all.
Chef Fabrizio

Nor you calling folks naive. Of course you meant that in the most positive manner.

In fact, most of your comments are throw away. But you never think folks would counter it. And someone else pointed out. He apparently does use the iPhone anymore.

He just looks to be hip.

Microsoft can do lots of things without partnerships. But… then you don't seem to understand their model. Its all about partnernships. Some good and some bad.
Northerngeek

My points are throw away? Considering it was you who used "comapnies like profit" as a basis for an argument and considering I backed mine up with real figures and knowlegde on the subject… yeah that makes a lot of sense.

I didn't come here to argue, I didn't start insulting people, calling an idea naive is not the same as insulting a persons overall intelligence. I even stated that I liked the idea, but that I just thought it was a little overly optimistic for the real world to just happen like people seemed to be thinking.

Don't make assumptions about what others understand either, I've been following Zune since the "Janus" days so I know all about Microsoft's willingness to form partnerships- I just don't agree that this is as feasible, or as much as a no brainer, as others would.

I would like some evidence about how things I say are throwaway for the most part, I wasn't aware that I was writing for a publication anyway, guess I better pass my comments by you for editorial approval.
Chef Fabrizio

I'll be more than glad to edit your comments for accuracy. I frankly don't care what phone Zuckerberg uses, is any at all. But if I'm going to quote his usage, maybe getting it right would be cool. No?____If you reread your comments, you might find, that you were insulting. Your quotes and then ending arguements so you have the last word, is quite insulting. And then you condescend by not finishing your idea, as if we aren't worthy of further reply.____I make assumptions based on your points. If Facebook thought that Zune was a money making proposition, regardless of what phone the CEO uses (whether accurately quoted or not), then they may just go for it. Like they did with Bing, and Like they did with taking Microsoft's investment.____
Chef Fabrizio

Right, you only came here to have the last word, and to win. And when someone challenges your knowledge, you state "I could go into all sorts of reasons why but really it just doesn't help your argument at all." which is kind of dimissive. But that is your style and God forbid someone finds that insulting. You may want to hire an editor. And a fact checker. I hear the dude at Facebook, may be changing his phone and service provider again.
Northerngeek

"But if I'm going to quote his usage, maybe getting it right would be cool. No"
Yes, and I was quick to make note of my mistake, I just tried to give reference for why I thought my facts were true. (-Afterall why would I keep particuarly close track of what the guy uses?)

"Your quotes and then ending arguements so you have the last word, is quite insulting."
I didn't end anything, I am always willing for further discussion and whilst you may have found the posts to be insulting that was not the intent, your posts on the other hand did seem to be particuarly aggressive when you start saying things such as " Or can't you think that far with your statements?"
Northerngeek

"And then you condescend by not finishing your idea, as if we aren't worthy of further reply"
It seems rather contrarian to claim you can finish my points for me in one post and then insist that I finish them in the next. I don't go into further detail because frankly it is not worth either person's time, there's a character limit, AND you didn't seem to be reading the replies fully in the first place.

"If Facebook thought that Zune was a …… and Like they did with taking Microsoft's investment"

Yes, investments of millions of dollars that outbid any competition DO make a money, unsurprisingly, and I did not say that it was impossible. I even support the idea.

I did not come here to "win" an arugment, I am not that petty, I came for a discussion. If I unintentially insulted you that's regretable and I am sorry however you very deliberately became insulting which is a different thing altrogether.
Chef Fabrizio

How could I have overlooked your other great theory. THat it would take YEARS or months, for labels to sign up for a bigger distribution network. Of course. These folks don't want to make money. ANd a Facebook integration for them, would be awful business. Egads, folks may actually buy our music? This Zune thing may actually compete with iTunes? Oh the horror of it all. We will not sign up for that. More profits? No no, we want no more profits.
Northerngeek

"How could I have overlooked your other great theory. ….. . More profits? No no, we want no more profits."

Sarcasm, really?

Your argument doesn't address what you claim; that it takes months/years to hash out such deals, especially for a worldwide release, just look at how long they've been trying to get such labels to allow Zune in Europe…

2007- http://www.reuters.com/article/idUSL2075074220070…
2008- http://www.crunchgear.com/2008/12/19/microsoft-jo…

It's harder than you claim. Of course the companies want to make money, but who's to say the record companies like the idea of a widespread subscription service on Facebook? It's their property and their choice what to do with it- hence the ridiculous time it took for them to respond to the threat of MP3s. Record execs have always liked the a-la-carte option for selling music until it has either failed or they've got their back against a wall.
vangrieg

Never underestimate the weird stubbornness of content owners. iTunes wasn't an idea that didn't come to mind to anyone but Jobs. He was just the first one who was able to convince labels that they can entrust their precious bytes into the hands of a tech company. Really. It does take years of negotiations, and even when you can sell music it doesn't mean you can stream it. Also, selling it in a relatively closed ecosystem like iPod/iTunes or Zune is a different beast from selling it in the wild.
Northerngeek

THANK YOU!

Somebody who can see that this isn't just a case of rubbing a lamp and making a wish.
rush24

@Northerngeek
"If they could snap their fingers and make it happen, sure, but what's to say it won't take years or months of negotiation with record labels? "

That is why this deal makes sense, Zune already has deals with record labels so it saves facebook from having to start from zero, which would be the case if they started their own music service.
Northerngeek

Yes, Zune has a license to distribute Music through their online store in America, including Microsoft owned properties… but what are the odds that they also got 3rd party social networking sites linked in with that deal?

Again just to point out: " I'd love to see it happen"… from my original comment. I'm not against this, I'd welcome it, but I just think the article oversimplifies things.
Brianna

You do realize that Zune is already integrated with Bing? http://www.engadget.com/2010/06/23/bing-entertain…

It wouldn't take much for it to move to Facebook.
Northerngeek

" including Microsoft owned properties"

Yes I do, hence this part of my comment. That's a different type of deal altogether.

bing

Also remember Microsoft owns 1.6% of facebook, and is the main web search provider, meaning you can search bing inside facebook.
http://www.facebook.com/profile.php?id=746307628 Ricardo Dawkins

Zune is a total failure anyway. They don't have any sense of direction. The feature set is lame and pathetic compared to any portable device in 2010. And as a service iTunes clean the clock with it. Heck, I think last.fm offers a better social service than the underfeatured and disjointed Zune Social

it should be easy to any Google music service to easily overshadow and distance itselft from what is the actual Zune ecosystem.

Chef Fabrizio

total failure?
http://www.facebook.com/seifip Philip Seyfi

Are you kidding me? iTunes is incomparable with Zune, probably the most useable music player available… Ant Zune HD is an amazing music player.

Chef Fabrizio

and does iTunes have the Zunecard, for unlimited music? No, of course it doesn't. So we get yet again a personal preference of Ricardo, and he extrapolates that to the universe. With Hyberbole. Yet, zune isn't anywhere near a "total failure".

Northerngeek

I swear you, or somebody wiht your name, used to be on Zunited.net's boards… it surprises me to see such anti-zune feelings.

Regardless, the Zune isn't a complete failure, but yes I'd agree it's not been a runaway success. There has been poor management since day one, but the device and the software have for the most part been a joy to use.

The social needs work, for starters simple things like allowing discussion of podcasts and rating of albums etc would work wonders to develop the service yet things such as this have been left out. One could argue that Amazon is more social- there people can discuss and rate things.

RDee

Stage left, or right even…I think it's a killer idea!