-9/29/10 Update: Check Out our extensive look at the Zune's Fall 2010 Update-

The fall 2010 update to the Zune Service brings a lot to the plate. Some of of Zune’s offerings are expanding into new countries. Other parts of Zune’s services will make it onto new devices. This can get a bit confusing so I have included a table to help you sort out what service goes where. While a date for Zune’s fall update is forthcoming, let us this break down what to expect from the update by the constituent pieces of the Zune Service:

Music Marketplace

With the arrival of the fall update, the Zune music library in the United States will grow to over 10 million DRM-free tracks. Unless you are using Zune Pass, you will not have to deal with any more protected WMA files. I should note that the DRM servers that authorize play back of these WMAs will not be going anywhere. While the servers will not shut down, be sure to back-up your music (e.g. burn it to a CD, store it to networked storage, etc.) as redownloads of these tracks will not be possible. Speaking of more music, your Xbox 360 will get access to the Zune Music Marketplace. For Xbox Live Gold members who also have Zune Pass, this means you can now stream tracks from the Zune Music Marketplace to your Xbox 360. As a heads up to Zune Pass users, streaming to your Xbox 360 will count as a using a device in the 3 device 3 PC Zune Pass arrangement. For Kinect owners this means you have a hands-free way to enjoy music (in addition to movie, TV show and music video offerings) from your couch. If you already use the Zune software on your PC and you share your media to your Xbox 360 you can continue to enjoy your local collection without needing an Xbox Live Gold membership.

In addition to the US offerings, the Zune Music Marketplace comes to Europe. With an 8 million track DRM-free library (plus music videos), people in Germany, France, Italy, Spain, and the United Kingdom get to join the The Social. Welcome to the party! As I understand it, pricing of individual songs in both the Eurozone and UK markets will be comparable to similar music services (e.g. iTunes and Amazon) in both areas. Unfortunately, there is still no news on Canada getting access to the Music Marketplace. In addition to Zune’s Music Marketplace, France, Italy, Spain, and the United Kingdom get access to Zune Pass. With the exception of the Keep 10 songs per Month deal in the United States, Zune Pass in Europe will be the same (3 device and 3 PCs) with a price of €9.99 (Euros) and £8.99 (British Pounds) in the respective countries. In these 4 countries, European Xbox Live Gold members will also be able to stream Zune Pass tracks to their Xbox 360. It is unfortunate to note that Germany will not have access to Zune Pass even though the country does get 8 million mp3 tracks to purchase. To me, it looks like this is the fruit of Microsoft’s 2007 acquisition of European music service Musiwave.

Video Marketplace

At its 2009 E3 keynote Microsoft announced Zune Video on Xbox Live would be coming to a total of 18 countries. By September of 2009, Microsoft came through on its E3 Zune desktop/Xbox Live video rental promise. Zune’s fall 2010 update extends rental capabilities to 13 of those 18 original countries, plus Mexico, when using the Zune desktop software. Those countries are France, Italy, Spain, Germany, Austria, Belgium, Ireland, Netherlands, Switzerland, Mexico, Canada, Australia, New Zealand, and the United Kingdom. In addition to movie rentals, Canada, Germany France, Australia, New Zealand, and the United Kingdom will have access to purchase-to-own videos. Fearing cultural imperialism, I hope those 6 countries get some localized content as well. For those countries in which Windows Phone 7 launches, you will be able sync your rented or purchased videos to your Windows Phone. It is worth noting that the same multiple bitrate streaming technology that went into the Zune Video Marketplace on Xbox Live will come to the next version of the Zune desktop software.

Devices

Considering what we have discussed already this is more of a rehash than new information. Similar to the KIN phones, the Zune Music Service will make its way to Windows Phone 7. Thanks to wi-fi and 3G, you can expect a Windows Phone 7 device to be able to stream (and purchase) 8-10 million tracks any time you are connected to the internet. Finally you will be able to watch your movies, TV shows, and music videos on the go, after syncing your Windows Phone 7 device with a PC. Secondly, the Zune Music Service makes its way to Xbox Live which enables Xbox Live Gold members who also have Zune Pass to stream music on their Xbox 360. It is my understanding that like any other Zune, connecting your Windows Phone 7 device to your Xbox will allow you to play content stored on your phone.

The Take Away

Looking at the international offerings of the Zune Service, France and the United Kingdom come out on top as their offerings most closely match those of the United States. However, other countries, notably Canada, are still missing parts of the Zune Service. As a consumer in Europe or Oceania, Zune’s fall 2010 update is not the easiest to comprehend. Looking at the differing availability levels of the Zune Service in the each country proves this point. In short, it is confusing. When compared to the availability of the Zune Service in 2009, this is progress. A little under a year ago, people in 18 countries received the ability to rent Zune Videos with their Xbox 360. This marked Zune’s first move off the North American continent. This year a number of countries get music or video offerings to complement Zune Video on Xbox Live. Regardless, I know a lot of international Zune fans are wishing all of Zune (among other services) would make its way to their country.

Remember when Marques read the tea leaves on the wall? He was not too far off. With this announcement, Zune follows through on Microsoft’s 2009 CES Keynote presentation on the convergence of three screens and the cloud,

“The first is the convergence of the three screens that people use every day, the PC, the phone, and the TV… Today only, only a billion or so people have a PC, and that means that there are more than 5 billion people who have never owned a PC…

But now it's no longer just about the desktop, but really about a broader vision. Technology is converging upon three screens, the phone, the PC and the TV. And they're really evolving together into a single, seamless ecosystem of any time, anywhere computing. Over a billion mobile phones are sold each year… Mobile phones are becoming more capable than ever, and over the next several years smart phones will make up over 50 percent of the mobile phone market…

Over the next several years we will see TVs become more sophisticated, and more connected. And the boundary between the PC and the TV will dissolve…

And the cloud, the Internet cloud is connecting all of your devices together seamlessly. In the future you will be able to connect to information and people you care about instantly across any of those screens.

In many ways connecting all of this together is the last mile to creating real breakthroughs for consumers. By bringing together the PC, phone, and TV across the cloud, we can really create a seamless experience that makes a significant impact in people's lives. The linchpin for bringing all this together for you should be Windows. I believe Windows will remain at the center of people's technological solar system.”

-Steve Ballmer, CES 2009 Keynote

This fall update is about more than simply who did not get Zune Pass. Thanks to the Zune desktop software, Windows Phone 7, and Zune Music and Video on Xbox Live (or a Zune HD + the HD dock) we will soon have Zune on three screens, on an international scale. Thinking about seamless experiences, the Zune Service is the cloud service that will connect these three screens. Remember, content purchased on one screen can be played on, or transferred to, another screen in a number of ways. Thinking about three screens on an international scale, the aspect most lacking from this grand vision is also that which is most daunting, reaching the consumer on a consistent basis. Even though Zune’s fall 2010 update has yet to happen, making sure that all portions of the Zune Service are available everywhere must remain a top priority (second to expanding the presence of Zune). Considering the most recent year-on-year expansion of the Zune Service, the fact it has grown within the footprint of the Xbox Live Service for the past two years, and the need for a consistent offering in markets offering the Zune service, you can be sure Zune’s international growth will not stop with this fall 2010 update.

Below is the table of Microsoft’s Zune, Windows Phone 7, and Xbox services with the hope that this helps to generate a complete picture of what to expect and where, when three screens come together later this fall:

Table Sources
Zune Services: Zune Insider, Microsoft News Center
Windows Phone 7 Apps: Windows Team Blog
Xbox Live: Xbox Website