Zune Still Exists Part 2: Original Content Hope

imageMicrosoft (NSDQ: MSFT) is hoping to add original and exclusive content to Zune, in an attempt to get some traction in the portable media player market, and make a dent, if any, in iPod’s dominance. Andrew reports that MSFT execs have been making the round of talent agencies and production companies here in Hollywood, trying to drum up these content deals. Zune, which recently announced crossing the 2 million players mark, does have some TV content. But it is hoping to add Zune “nontraditional programming” that can capitalize on the device’s social networking platform, according to Richard Winn, director of entertainment development at Zune, quoted in the story. So it is still trying to hawk its Zune Social startegy, when the numbers–to enable network effect–aren’t in its favor.

And while that’s an admirable pursuit, it won’t move the needle. Exclusive content deals do generate PR, but no proof yet on it having a big impact on sales, XM-Sirius (NSDQ: SIRI) notwithstanding (well, in the latter case, you spend crazy money to get these rights, and merge in an effort to survive with those costs).

Meanwhile, an ironically funny story in tomorrow Sunday NYT magazine, about the kind of people who buy Zune. “The most salient feature of the Zune seems to be that it

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