In continuing the argument that technology companies are the media and entertainment companies of the future, Apple pushes forward with a strategy of facilitating digital distribution. Apple understands its strengths and weaknesses: unlike the existing global media conglomorates, Apple doesn't own digital distribution- cable or satellite companies- nor does it own the content- the music. By focusing on what it does own, the human computer interface, Apple can occupy the same void in the marketplace that has so far enabled disruptive technologies to create growth markets and bring incumbant leaders to their knees.

According to today's Guardian, Apple is in talks to acquire Roxio- the owner of Napster, Pressplay, and various consumer-level media software packages. While there is enormous overlap with Apple's product suite, this acquisition will speed up development for Windows products, as well as provide Apple with the senior management Roxio acquired from Sony (via Pressplay)- management that has been negotiating deals with record labels, artists, and 3rd party software vendors for relevant digital music distribution technologies, such as Agent Arts or Music Match.

If Apple does acquire Roxio, I wouldn't be surprised to see a company like Microsoft acquire the consumer video software division of Pinnacle Systems. Pinnacle, according to an audio webcast of their most recent quarterly report, stated that they have an installed base of 5.5 million users for their consumer video editing product, Studio. In addition, they recently bought a consumer video software company with CD/DVD copying technology for $7 million, in addition to investing $4 million into a Japanese software republisher to help enter the Japanese market. Microsoft's MovieMaker will not be enough if it wants to compete fully with an Apple/Roxio.

Longer term, the trend will continue to be Technology over Media/Entertainent, as the successful introduction of human computer interfaces for digital content production and consumption creates growth markets in the gaping voids left open by traditional distribution and production technologies and techniques.