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The case for Apple's interest is fairly clear. Thanks to some good software and a strong emphasis on multimedia right from the start, the company's products have long been associated with the creative industries, including music and video.

Right now, Apple's future is not as bright as it was a few years back as Microsoft strengthens its vise-like grip on the personal computer marketplace. The company would have little to lose therefore by attempting to diversify its holdings and revenue streams, particularly when it already has such a strong presence in the target industry.

I would suggest that Microsoft's motives are however, significantly different.

For some time now, Microsoft have been trying to convince the recording industry to use its proprietary digital music formats. These formats, Microsoft claims, are not only more efficient than other options but they also provide a powerful digital rights management (DRM) facility to help thwart piracy.

Unfortunately, despite their best efforts to date, most of the recording companies seem to largely ignored Microsoft's approaches, preferring instead to try and turn the good old CD into a "secure" medium and opting to use Apple's Quicktime format for their multi-media tracks.

With this in mind, it would appear that Microsoft has adopted an attitude it's used before in the software industry "if you can't beat them, them, buy them."

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If Microsoft were to buy Universal, it may then have enough clout to drive the entire music industry towards using its WMA format for the computer sessions of new audio disks.

This would also greatly strengthen the case for WMA to become the standard in a greater range of other consumer electronics devices.

Microsoft is not really interested in becoming a music company -- its sole objective is to earn a few cents every time a music disk or player is sold. If it has to buy a part of the recording industry to do this, it will.

But if Microsoft buy Universal Music, what will become of Apple?

Well put it this way, I don't think I'd like to be holding a lot of Apple stock at that point in time.

Given the high levels of confusion and desperation that currently exist within the recording industry, Microsoft's timing would seem (as ever) to be impeccable.

Experience has shown that attempting to produce audio disks that are compatible with existing players but which are immune to ripping or burning is fraught with problems.

Despite the denials of the recording companies, the public are bitching that their new "Enhanced Audio" disk won't play in their car, on their computer, or on their flash new DVD player. Some customers are so pee'd off that they're even lodging complaints with consumer protection organisations, while others are contemplating bringing private law suits.

The only way the industry will be able to regain a sense of control over the music they sell is to make the move to a new digital format -- effectively consigning the good old CD to the history books.

Microsoft's ownership of a major recording company, combined with the clout it currently has with consumer electronics manufacturers, would almost certainly be enough to convince those manufacturers to embark on the launch of a new "strong DRM" standard for audio disks.

The two elements of a successful format shift would be there:

• The players (all running MS software designed to play WMA files)
• The content - that huge inventory of Universal's artists and music

Of course the Xbox would be one of the very first machines made capable of playing this new audio format (very important, since it can't play the latest generation of "Enhanced Audio" disks).

You can be sure of one thing -- the CD as we currently know it is a lot closer to extinction than you might think. Don't believe me? Go into your local music store and just see for yourself how few of the latest releases carry the once ubiquitous "Compact Disk" logo.

Who defines and controls the next standard for audio media may well be decided by the outcome of Microsoft's bid for Universal Music.

Xtra: More Proof?
Friday's edition of Aardvark linked to Google's cached copy of a page from the Xtra website containing pretty damning evidence that the ISP had been republishing a customer's intellectual property without permission.

Strangely enough, within hours of that link to Google being published, the cached copy had been pulled.

Coincidence? I don't think so.

It's been my experience that Google doesn't delete its cached copies unless the webmaster formally requests that this be done.

It would appear that in this case Xtra definitely feels it had something to hide and moved quickly to remove the incriminating evidence.

I think their actions in this case speak far more for their culpability than anything I could say in this column.

And of course if any Aardvark readers have an opinion on today's column or want to add something you're also invited to chip in and have your say.

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