Entelligence is a column by technology strategist and author Michael Gartenberg, a man whose desire for a delicious cup of coffee and a quality New York bagel is dwarfed only by his passion for tech. In these articles, he'll explore where our industry is and where it's going -- on both micro and macro levels -- with the unique wit and insight only he can provide.

A lot's been made of the new Zune commercial that Microsoft aired recently. If you have haven't seen it, take a look. Now don't get me wrong. I think there's a lot that Microsoft can do with Zune, but this ad doesn't quite do it for me. What's wrong? First, it took a shot at Apple that felt silly -- after all, most consumers don't spend $30,000 to fill up their iPod (how much did it cost to fill yours?). Even if that's the case, buying a Zune Pass won't fill up an iPod either. Second, it started to make a value play that's real, but stopped short of actually making it.

The ad was interesting as it begins the discussion of the value of the Zune Pass. That's important. The power of the Zune Pass lies at the core of the differentiation of their whole business model, subscription services vs. single song downloads. Microsoft needs to go further and explain how these two models can co-exist with each other. Up until now there were only two models for music, the free and ad supported stuff on radio, or music you bought or owned (or perhaps acquired elsewhere). Zune Pass and other similar services change all that. While consumers "rent" video content all the time from theaters, cable companies, Netflix etc, there's also a lot of other stuff sold on DVD. There's no reason for this to be binary -- rent or buy -- it's just never been applied to music and when it has, it's not been explained or marketed well at all.

There's just nothing like the holiday season, folks. That warm, fuzzy feeling you get when spending your last dollar on a gift for someone you aren't even that fond of -- really, what else can compare? On second thought, maybe this can. Microsoft has just announced that, beginning today, Zune Pass users will be able to select ten tracks per month to keep forever (and ever, and ever), and the $14.99 monthly subscription rate isn't headed up. Agreements have been miraculously nailed down between Microsoft and EMI Music, Sony BMG Music, Universal Music Group and Warner Music Group, not to mention a number of independent distributors. We must say, we certainly appreciate the gesture here, but is it enough to make fencesitters buy in? What say you?

Even before the Zune came out we heard that while the software wouldn't sync to other players (and the player to other software), the DRM the Marketplace used was basically compatible with PlaysForSure. Although we haven't seen anyone try and document the process, Zune Pass user AIZEE showed off a couple of screencaps successfully loading DRMed tracks onto his Creative Zen with Creative Media Explorer. We didn't verify the process and thus can't guarantee Zune Pass tracks will work on the portable of your choosing, but again, we're not too shocked that somebody could get their Zune music to authorize on another device. Somebody call us when someone gets the Zune itself to sync with Napster or Rhapsody, ok?

If anyone's a little hesitant to thrown down the $14.99 a month for a Zune Pass subscription, you count on Microsoft to be doing its best to tempt you to sign up for the all-you-can-eat music service. According to Wal-Mart (not their first bit of Zune-related leakage) Microsoft is set to include a free 14-day Zune Pass trial with each Zune sold, letting you sample the vast Zune Marketplace at your leisure without dropping a cent. Of course, the good times can only last so long, and at the end of your 14 days all the songs you've downloaded will do nothing but take up space until you fork over the cash for the real deal. Wal-Mart also makes mention of Zune.net which, as of yet, is nothin' but a dead end -- although it is, of course, registered to Microsoft.

[Via Zunerama]