[citation][nom]tydalwave[/nom]And that is the reason Xbox Music (previously known as Zune Pass) is the better option. My daughter uses the Zune HD and has almost 7000 songs on it, I have a WP8 (HTC 8x) with already 20 albums on it, all for only $9.99/mon. It boggles my mind to think people actually pay the $.99 per song, where $10 bucks gets you access to over 40 million songs and you get to keep 10 songs a month. So pretty much free music...[/citation]
NOBODY pays 99 cents per song anymore. Amazon has tons of great MP3 CD's where you can get your 12 songs for $5. Or you can find people selling their CD collection with tons of CDs for $25-50, or if you are looking for a specific CD then there are lots of places selling CDs for a penny (plus $2.50 shipping). And then there are free services like iHeart Raido or Pandora which have a minimum of commercials, or if you want to skip the commercials then you pay $36 for a YEAR instead of $10 per Month, and iHeart Radio is similarly priced. Even those tied to the iEverything universe can get decent deals and sales from time to time.
I picked up my Lumia 920 and there is no way on earth I would pay for the xbox music service with add-free Pandora for a year on the way and when I already have a rather extensive music collection that I paid very little for, plus all of the free podcasts available which will take a lifetime to get through.
$10/mo for music these days is actually quite expensive.
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I somehow managed to skate through life without buying a dedicated MP3 player. Back in the day I had a CD player with MP3 support, and that sat in my car for years and years, and I still have it though I have not used it in 3-4 years. Then about 5 years ago I picked up a GPS which worked as my MP3 player, and just recently I got a smartphone that is my MP3 player. All of these devices were cheaper, had better build quality, and had better audio quality than iDevices of their generation. The only iPod that looked remotely appealing to me was the nano due to the nice tiny size of the device.
Now a days you can get an iPod touch for just under $300... or you can get a high end smartphone for $450 which works as an mp3 player, e-reader, web device, GPS, phone, and (in my particular use) laptop.
Of if you are on a contract you can get the phone for $50-100 up front, and then have a total cost of ownership of $600 with your cell phone plan (when compared to a similar non-contract plan where you have to purchase your phone without discount).
The MP3 player market may still make sense for kids who do not yet have a phone, but once you have a cell phone (even one that is not a smartphone) there is little reason to tie yourself to the iUniverse, or have a dedicated device in general. Perhaps if they made an iPod touch with a real capacity (250-500GB) which works as a HD video device for all of your movies and streaming needs, and hooked up to your TV and could get terrestrial radio and TV then there would be a market for them... But as it stands now, the only people buying MP3 players are grandparents who are getting them for their kids and grandkids and don't realize that the device will never be used.