Not since the Ford Motor Company introduced the Edsel a half-century ago has an item experienced by so few been as effective a punchline as Microsoft’s Zune.

The announcement of its launch in Canada on June 13 — preceded by immediate access to its software and online community — earned guffaws from any American outlet inclined to notice. “Hear that? That's the sound of dozens of Canadians rejoicing,” wrote Engadget. “Finally, Canadians Can Ignore the Zune, Too,” posted Idolator. And, on last night’s Colbert Report, it was suggested that George W. Bush should buy a Zune to portray himself as “completely nutball”.

Since being introduced stateside 18 months ago, Bill Gates’ iPod killer has a market share of 4 per cent. An effort to increase those numbers continued Monday with new social software and a deal to sell NBC shows that were pulled off iTunes in a pricing dispute. But who in Canada doesn’t love an underdog?

At least the Zune will be following in the same tradition that kept the domestic carrier of the iPhone a mystery until last week, with a launch date yet to be announced by Apple. And their iTunes Music Store took an extra year-and-half to work on Canadian computers. Zune Marketplace, the Microsoft answer to the iTMS, has an all-you-can-eat subscription service that still won’t launch here.

“We’re not coming late to Canada,” says Zune product manager Elana Zur. “I’d say it’s the opposite — the delay provided enough time to make sure it's right for Canada.

“There might be an expectation that products are supposed to launch in multiple countries at once, but it helps to get out of that mindset. We’re the first country to get the Zune internationally. That’s a really big win for us. It’s something special.”

Word of the wireless sync and sharing capabilities of the Zune, along with a growing online community, started redeeming its reputation last fall. Plans for the Canadian rollout started last September, as Zur was reassigned from Microsoft mice and keyboards to months of technical tests and federal approvals for Zune. (Having a similar surname to the product you’re speaking on behalf of is also probably a more effective preconscious endorsement than getting a Zune tattoo.)

Don’t look for beachfront booths comparing the Zune’s virtues to iPod a la the Pepsi Challenge, though. In fact, there won’t be any formal Zune promotion at the outset — suggesting that all the ridicule has been enough to pique curiosity in the marketplace, generating enough viral coverage to rank with Krispy Kreme.

“It’s not like we’re coming to market like Avis car rental saying that they’re number two,” says Zur. “Nor are we trying to be number one off the bat. When the Xbox launched, lots of people wondered why Microsoft was bothering to take on Nintendo, and it turned out that there was a huge demand for an alternative.

“There’s a general feeling out there that the iPod is almost ubiquitous — that everyone and their grandmother has one by now. But there’s a movement of people who want choice. There’s actually a sense of celebration surrounding the fact that Microsoft is the one company that can take on Apple head-to-head in this category. And what we can bring to it is more than just a competing device.”

Microsoft’s move into selling downloads of popular television shows that iTunes can’t is a distraction from the fact that their Zune Marketplace is responsible for under one per cent of online music sales — even though Digital Rights Management was recently removed from around one-third of its three million available tracks. A deal was originally cut to give Universal Music a buck from the sale of each Zune to compensate for the “unauthorized content” on the players.

The limited reach of paid music downloading services in Canada were raised as a lobbying tactic by the Canadian Recording Industry Association (CRIA) a couple years ago — providing “proof” in the relative sales of Gwen Stefani’s “Hollaback Girl” — a flawed argument that failed to consider the iTunes time lag.

Puretracks, the online music store that was first to market in October 2003, was addled by too much DRM while relying on the Windows Media Player for delivery. (They now have a selection of DRM-free MP3s.) Giving away free downloads via bulk packages of Kraft Dinner or Big Mac boxes didn’t help its credibility — you can now get three free songs with a concession combo at the Empire Theatres chain, which is mirroring Puretracks at their own Songo.ca.

Yet, according to CRIA, online music comprises just 12 per cent of the Canadian music sales — compared to 29 per cent for the US. This disparity between markets was cited as a mobilizing factor in last week’s launch of eMusic Canada.

While the eMusic business model has been around since November 2003 — and the site and its subscriber offerings weren’t entirely blocked here — the company is now making content from Canadian indie labels available on both sides of the border. That includes the likes of Feist, Sarah McLachlan and Rush, who aren’t available on eMusic elsewhere due to their bigger corporate affiliations in the US.
 
“We’re not going to appeal to an 18-year-old pop lover,” says eMusic president and CEO David Pakman. “But that differentiation has helped build our business.”

eMusic Canada also carries a higher monthly subscription price than its American counterpart, a consequence of a different licensing structure, explains Pakman. New paid subscribers are being courted with 50 extra free downloads, and the assurance that the 3.5 million songs can play anywhere, even the Zune.

Rather than promoting itself through fast food, eMusic tries to project prestige through more affluent tie-ins — like five or ten tracks with every Avis car rental.

“Being the second most popular online music retailer means that we can probably play a role in making the Canadian marketplace larger,” says Pakman. “We’ve been successful specifically because no one is mistaking us for Apple.”

Previously on the Scroll: CRIA’s big cock-up

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