Creative Unveils iPod Competitor

Creative Technology's latest mobile media player -- the Zen Vision:M handheld video player -- offers a slick design and impressive features, but the device, say experts, is not only competing against Apple's (Nasdaq: AAPL) iPod video device but against the overall iPod/iTunes solution, which delivers superior overall ease of use and access to content.

Creative highlighted the Zen Vision:M's ability to play digital video in a variety of formats, more color than iPod's screen and the gadget's "cool" factor, as Creative CEO Sim Wong Hoo called it recently.

However, even if Creative's product looks the part, experts say it is no match for the Apple original. The iPod represents a "perfect storm" confluence of content, ease of use and ease of distribution that is extremely difficult to rival, analysts agreed.

"The thing Creative doesn't have going for it is the ease of use, and the user interface ease of use of iPod and iTunes," Gartner (NYSE: IT) research director Michael King told MacNewsWorld. "That's really what iPod has going for it -- the iTunes integration and [content] distribution deals. That's why you don't see any competition with iPod/iTunes, and that's why I don't think you will anytime soon."

Features and Formats

Still, in announcing the product last week, Creative touted superior high-resolution color LCD screen and longer battery life than Apple's 30 GB iPod. The 30 GB Zen Vision:M will be available this month for US$330.

"We designed the Zen Vision:M with its mesmerizing 262,144 color screen to display four times the color of the 30 GB iPod that plays video, and to provide twice the battery life for video playback," said a statement from Creative's Hoo. "Plus we offer people the freedom to choose their video in a variety of different formats, and to get subscription music or download tracks from a number of different sites to their player."

Among the music providers making songs available on the Zen Vision:M are Yahoo (Nasdaq: YHOO) Music, Napster, Rhapsody, MSN Music and AOL Music. The Zen Vision:M will be capable of carrying as many as 15,000 songs and has a rechargeable battery capable of 14 hours of music playback or four hours of video playback on its 2.5-inch screen, Creative said.

Challenge on the Whole

Jupiter Research vice president Michael Gartenberg told MacNewsWorld the new Creative device is attractive, and may appeal to enthusiasts who appreciate the support for different video formats, including MPEG-2, MPEG-4, Xvid, WMB, MJPEG and TiVoToGo.

However, the analyst indicated Creative's claims of technical advantages over the iPod were likely to be lost on consumers.

"Consumers have already said the iPod screen is good," he said. "So it's going to be hard to challenge [iPod] on technical merits."

Gartenberg also questioned the the Zen Vision:M's legally available content. He said content availability, along with packaging and service, are the keys to Apple's dominance.

"It's going to be hard to challenge [Apple] on the whole, and the whole is where the content comes in," he said.

Integration Importance

Gartner's King reiterated Apple's winning combination of device integrated with easy-to-use service and transfer, and deals for licensed content.

The analyst said there are other devices with better ease-of-use, different format support and lower pricetags, but none truly rival the iPod/iTunes model.

"It comes down to user interface and integration," he said.