Category Archives: DRM

Apps and iTunes Cards in Canada: Follow Up

Recently blogged about this issue: though information about this appears nowhere on the card or in the terms of service, iTunes Cards (gift cards or certificates) may not be used to purchase applications on the Canadian version of the iTunes Store.

Since I posted that blog entry, a few things have happened. I did receive replies from Apple, which were rather unhelpful. The most useful one was this message:

Hello Alexandre,

I understand and apologize about your situation and i do want to assist you as much as possible . I am going to issue you 10 song credit. Again i apologize and i hope this issue gets resolved. I will also apply feedback about this issue .

Thank you for choosing iTunes Store and have a great day.

Sincerely,

Todd
iTunes Store Customer Support

I had no intention of purchasing tracks on the iTunes Store at this point but I do “appreciate the gesture.” Here’s what I wrote back:

Thanks. I wasn’t planning on downloading songs but I appreciate the gesture.

Not overwhelming gratitude on my part. Simply stating that, though this isn’t appropriate, I can still be polite.

What’s funny is that I received this reply to my simple “thank you” note:

Dear Alexandre,

You’re very welcome. I’m glad to hear that i was able to help some .

Nothing makes Apple happier than to hear that we have pleased our customers. I hope that you continue to enjoy the iTunes Store.

Thank you for choosing iTunes Store and have a great day.

Sincerely,

Todd
iTunes Store Customer Support

From that message, you’d think I had praised the iTunes Store for hours on end.

Just in case it might make a difference, I tried filing another support request. Here’s the reply on that one:

Dear Alexandre,

Welcome to the iTunes Support Site. My name is Staci and I am here to assist you.

Thank you for contacting Apple about the App Store. We’re glad you’re interested in
this new offering.

I’m sorry, but you will not be able to purchase games or applications with store
credit or an iTunes Gift Card in Canada. Customers residing in Canada may only
purchase games and applications using a credit card.

I am confident that the information provided will solve your gift card issue. If
you have further questions, I can be contacted during the hours listed below. Thank
you and have a prosperous New Year.

Sincerely,

Staci
iTunes Stores Customer Support

This one sounds even more like a canned reply and  “the information provided” doesn’t, in fact, “solve [my] gift card issue.”

Clearly, Apple isn’t “doing the right thing.” In terms of customer service, it’s not a positive experience. I did enjoy some aspects of the iTunes Store and I think it’s quite convenient. But I’m not “enjoying the iTunes Store” so much, anymore.

In the meantime, I started receiving comments on my previous blogpost on the issue. One was from someone who purchased a 150$ iTunes Card. Almost as much as the 8GB iPod nano.

Most of the advice given on this issue, outside from Apple’s unhelpful replies, has to do with things which are illicit. One would be to resell tracks purchased with this card to other iTunes users. Since the tracks are now all DRM-free, this is technically feasible. But it’s also illicit and potentially traceable. Another piece of advice, to purchase applications using an iTunes Card, is to buy a card in the US. As far as I know, this is technically doable but it also contradicts Apple terms of service.

Not good solutions, but ones which disgruntled iTunes Card buyers may contemplate.

Since then, I also received a message asking me to complete a survey about my experience with Apple support. Here’s the complaint I included in that survey:

I was given the “runaround” on a very easy issue: I need a refund.
There’s an obvious problem with the fact that iTunes Cards may not be used to purchase applications on the Canadian version of the iTunes Store. Nowhere on the card itself or even in the Terms of Service is this restriction mentioned. As this issue gains prominence, Apple could get a significant hit in consumer perception. Not sure if it will become a class action lawsuit, but it’s as significant an issue.
Email replies were disappointingly unhelpful. Instead of investigating the situation, I was led to a forum post musing about the possible reasons for this restriction. I was eventually credited ten songs even though I had no intention of getting tracks on the iTunes Store at this point.
While the amount of money is relatively small in my case, I’m getting comments on my blog from people who lost the money equivalent of an iPod nano.

Again, I probably won’t file a class action lawsuit against Apple, in part because these suits mostly make money for lawyers. But my dissatisfaction with Apple remains. In a way, it even grows, because there were several opportunities for Apple to “do the right thing.” Yes, it’s partly on principle. But it’s also a matter of the way the corporation is perceived. In this case, they sound polite but quite dismissive.

There’s no question in my mind that a mistake was made: no information on this restriction was added anywhere a gift card purchaser may find it. Because of this, people are redeeming iTunes Cards with the specific intention of enjoying their iPhone or iPod touch in a new way. As this was a season of gift-giving, some people probably received these gift cards and, thinking they might use them anywhere on iTunes, redeemed these cards instead of returning them. Only to find out, after the fact, that “you will not be able to purchase games or applications with store credit or an iTunes Gift Card in Canada.”

Bummer.

This frustration isn’t such a big deal in the abstract. But context is everything. Part of the context is the set of restrictions placed by the iTunes Store in general. It may not have been much of an issue, for a given user, that it’s impossible to buy applications directly from developers, unlike Android Market (the Google equivalent to the App Store). For casual users, this is pretty much a non-issue, especially since the App Store is so convenient. But this restriction becomes quite conspicuous once an iPhone or iPod touch user runs into this kind of problem.

There’s a broader issue. With the iTunes Store, Apple is sometimes said to have “solved micropayment.” Ever since the iTunes Music Store opened, at least part of Apple’s success has been assigned to the Amazon-like way they implemented their payment structure and it’s quite likely that the iTunes Store model has been having positive effects on the way Apple is perceived by investors. Because of the way it handles payments and reduces overhead, Apple has been able to make money on relatively small amounts of 99¢ (and, recently, 69¢). I’d call this “minipayment” because one can easily imagine even smaller amounts being paid online (for instance, a minute of cellular or long-distance communication). In this case, Nokia, eBay/Skype, and cellphone carriers have better micropayment systems. But Apple still deserves “Wall Street cred” for the way it handles small payments.

Yet, once you start thinking about Apple’s payment system in more details, say because of a bad experience with the applications section of the iTunes Store, you start noticing how flimsy the payment structure is because it relies on users willingly entering a closed system. It’s not just that the iTunes Store is closed. It’s that, once you buy on Apple, you need to restrict yourself to “Apple’s ecosystem.” This has often been the case on a technical level. It’s now a matter more visible to the casual end user: money.

From a “tech media” perspective, this closed ecosystem is part of a pattern for Apple. But the financial part isn’t frequently discussed.

It will sound like a strange analogy but it’s the one with which I come up as I think about this: IKEA bedding. Because IKEA’s measurements are metric, bed linen was an issue with IKEA-purchased mattresses in Canada. Not sure if it’s still the case but it used to be that those who bought beds at IKEA were then stuck with metric measurements for bed linen and those are difficult to find in Canada. In effect, those who purchased beds at IKEA were restricted to IKEA linen.

In computer terms, the classic case is that of a difference in fileformat between products from two developers. Apple certainly had its share of “format wars” but it mostly solved these issues. Recent Macs (including the Mac mini Intel Core Duo I’m currently using) support a Windows installation as well as Mac OS X. In terms of networking, it’s now quite easy to set up mixed networks with both Mac OS X and Windows machines. Even the music part of the iTunes Store is lifting those restrictions which made them technically incompatible with other devices. All in all, Apple has gone away from its strict control, at least in technical terms.

But in financial terms, Apple is using a fairly restrictive model for its iTunes Store. Once money gets into an account (through gift cards, allowances, or “gifting”), it can only be used on that account. Because of some restrictions specific to Canada, some of that money is restricted from use for buying applications. And Paypal isn’t available as a payment option in the Canadian iTunes Store. In effect, the only way to purchase an application for the iPhone or iPod touch is through a valid credit card. Given the fact that a majority of people are likely to have some kind of credit card, this doesn’t seem too restrictive. But there’s a variety of reasons people may not have valid credit cards and there’s no connection between buying something on the App Store and using a credit card. The iPod touch has been marketed as a gaming platform during the holidays and chances are that some iPod touch owners are children without credit cards. I’m not sure what the options are for them to buy iPod touch games. The same could be said about games for the iPod Classic, a device which clearly is used by children.

Part of the problem relates to the Canadian financial system. For one thing, debit cards with credit card numbers are rare in Canada (I’m not sure they exist). Many Canadians tend to use Interac, which does offer some advantages over credit cards, IMHO. As I’ve recently experienced, Interac now works online. It would make a lot of sense for Apple to support it online (I’m sure Canadian Apple Stores already support it). And there must be a reason Paypal, which can be used for iTunes Store purchases in the US, is unavailable in the Canadian iTunes Store.

So, yet again, Apple’s Canadian customers appear “underprivileged” by comparison with US customers. In public perception, this is pretty much a pattern for Apple.

I don’t think that the messages I’ve received helped. Though they were polite, they were dismissive as my problem was basically dismissed. From being dismissive, Apple can sound arrogant. And arrogance is tricky, in today’s marketplace.

I’m reminded of the recent Simpsons episode about Apple. Excerpts of it made their way to YouTube as they play on several gripes people have with Apple. Arrogance was clearly a key theme in that episode. Another Apple parody, the MacBook Wheel spoof from The Onion, was more directly centred on making fun of users and elements related to Apple’s perceived arrogance were less obvious.

I don’t own AAPL.0 stock but, if I did, I might sell some. Sounds silly but corporations which treats its customers in this way aren’t something I would invest in. Despite the fact that I do “invest” in Apple products.

I just wish Apple “did the right thing.”

Advertisements

Soon Clueful?

Now that Valenti is gone, will the MPAA finally get a clue?

MPAA: We are committed to fair use, interoperability, and DRM

Come on, gang! Give this a little bit more thought! You can do it!


The Quest for Student Ears

College students take to Ruckus | CNET News.com

(Also talks about other music-related services showed at the Digital Music Forum – East.)

Talked about Ruckus and music discovery on one of my other blogs. Still like part of the system as a way to explore musical diversity (especially if they get more diverse music).
The idea, here, is to hook students-as-music-consumers to a music delivery system. Not even sneaky. But a bit ill-advised, IMHO.


We Do Live in Interesting Times

And I mean that in a positive, optimistic, hopeful, idealistic way.

Been pretty busy recently. Have a bunch of things to read and catch up with. So this’ll just be a series of links. I feel they’re all related, in a way…

Will the GBN jump in now or did it do so already?


Anti-DRM Patent

It might not work as a way to stop the spread of the DRM disease (“Digital Rights Management” restrictions on content files) but it might get some people thinking about the abuses of “Intellectual Property.”

Kernel developer, Alan Cox, files patent on DRM – LinuxQuestions.org


Web 2.1 or Internet 7.0?

Speaking of Web technologies getting together to create tomorrow’s Web. It’s all about puzzles.

It’s really not that hard to visualize the completed picture of a Web 2.1 puzzle merging most of the advantages from the main Web 2.0 players: Facebook meets YouTube, Wikipedia meets WordPress, PodShow meets Digg, Flickr meets SecondLife… Smaller players like Moodle and GarageBand are likely to have a huge impact in the long run, but the first steps have more to do with the biggest pieces of the puzzle.

In fact, if I were to take a bet on the near future of the user-driven Web, I’d say Google is the one institution with most of the important pieces of the puzzle. Google owns YouTube, JotSpot, MeasureMap, Writely, SketchUp, Blogger, etc. They have also developed important services and features like Gmail and Google Maps. In many ways, their management seems clueful enough. Their “do no evil” stance has helped them maintain much of the goodwill toward them on the part of geeks. They understand the value of the Web. And they have a fair amount of money on hand.

Because of all of this, Google is, IMHO, the most likely group to solve the puzzle of redesigning the Web. To pull it off, though, they might need to get their act together in terms of organizing their different services and features.

On the other hand, there’s an off-Web puzzle that might be more important. Internet 7.0 needs not be Web 3.0 and the Web may become less important in terms of digital life. Though I don’t own a cell phone myself, a lot of people are surely betting on cell phones for the future of digital life. AFAIK, there are more cell phone users than Internet users in the world and cell phones generate quite a bit of revenue to a lot of people. The connection between cell phones and the Net goes beyond moblogging, VoIP, IM, and music downloads. It’s not hard to envision a setup combining the advantages of a smartphone (à la Tréo or Blackberry) with those of a media device like the Apple iPod, Creative Zen, or Microsoft Zune. Sure, there’s the matter of the form factor difference between smartphones and portable media players. But the device could easily have two parts. The important thing here is not to have a single device doing everything but having a way to integrate all of these features together, without the use of a laptop or desktop computer.

There are other pieces to that second puzzle: MVNOs, voice navigation, flash memory, portable games, Linux, P2P, mesh networks, media outlets, DRM-freedom, etc. And it’s difficult to tell who has the most of those pieces. Sony would be a good bet but they have messed up on too many occasions recently to be trusted with such a thing as a digital life vision. Apple fans like myself would hope that the computer company has a good chance at shaking things up with its rumored phone, but it’s hard to tell if they are willing to listen to consumers instead of WIPO member corporations.

It’s also difficult to predict which scenario is likely to happen first, if both scenarios will merge, if we will instead see a Web 2.0 burst, etc.

Puzzling.


Zune Debacle: Worse Than Expected

Microsoft’s Zune media player is out:

BBC NEWS | Technology | Zune goes head to head with iPod

We already knew the sharing feature was crippled, even for non-DRMed user-created files and that Microsoft’s own “Plays for Sure” DRM will not play on the Zune. The Zune is crippled in other important respects.

  • Doesn’t use Windows Media Player.
  • No podcasting support.
  • The Zune software doesn’t allow for sharing between computers (the way iTunes does).
  • No PDA features (not even the iPod’s calendar and contacts).
  • Apparently no recording feature.
  • Apparently no add-ons.
  • Some music studios are asking for a share of the profits on unit sales, even though the device could be used with non-studio content.
  • The store’s “point system” is even more confusing than it first seemed. (A song is worth 79 points, costing $0.99, the minimum number of points is rather high…)

Actually, I just read Duke University’s report on their early iPod initiative. Since that report, the iPod has improved a lot and several features and services are especially useful for educational or academic use. Podcasting support in iTunes and iTunes U is far from perfect but makes the iPod a very desirable device for course-related use. With the help of an inexpensive add-on , the latest iPods can record in much higher quality audio than the version Duke had for its iPod initiative. Since recording was the most appreciated feature through that initiative, the iPod is a much better academic tool now than it was at the time of the Duke initiative. In fact, my iRiver H120 lacks many of the feature expected from the latest generation of media player but has proven an extremely valuable tool for academic purposes due to its recording abilities and the bookmarking features of the Rockbox firmware (ideal for podcasts).
Microsoft Zune’s goes in the opposite direction. No podcasting features, apparently no support for recording.

Too little, too late.