A recent agreement between Apple Computer and Hewlett-Packard to deliver a co-branded music player based on Apple's iPod device may be one of the most important developments in the evolution of digital music entertainment. The agreement, in which HP will now sell a version of Apple's portable music player with the HP logo and signature blue color (instead of Apple's white), is expected to produce the most integrated, easy-to-use digital player on the market.

Consumers purchasing an HP-branded digital music player can obtain music from Apple's iTunes digital music jukebox and online music store. Also as part of the agreement, HP consumer PCs and notebooks will come preinstalled with the iTunes jukebox software from Apple as well as a desktop icon that directs users directly to the iTunes Music Store.

While market analysts expect big results from this co-branding effort, the future of the digital music space is in no way certain. Recent digital player offerings by Samsung, Panasonic, Napster, Digital Media and others are likely to make the race for digital supremacy anything but over.

(January, 2004)