The Change Mariner

Hewlett Joins With Apple in Music Deal

New York Times:

But with those days long gone, the new alliance underscores the feverish deal making going on as computer makers, consumer electronics companies, and content providers all jostle for position in the uncharted territory converging around digital entertainment.

"It's frenetic out there," said Gary Johnson, the chief executive of PortalPlayer, a hardware design company in Santa Clara, Calif., that contributed to the design of the first iPod. "The world of the PC and consumer electronics industry are combining and digital music is becoming a key service."

The advent of legal online digital music sales and subscriptions has touched off a gold rush of companies racing to stake a claim with consumers, whose interest in digital entertainment while at home and on the move has re-energized an industry that still is struggling to revive spending on information technology.

The growing importance of digital media is fracturing the monolithic world long dominated by Microsoft's software and spurring the creation of an array of alternatives.

"These new software platforms are a brand new opportunity," said Mark Anderson, president of Technology Alliance Partners, a Seattle-area consulting firm. "It's a completely different game."

Microsoft has said that it plans to offer its own MSN music store later this year.