June 9, 2005 12:48 PM PDT
Microsoft planning music subscription service
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The software giant launched its song download store, similar to Apple's iTunes store, last September. The Microsoft MSN-branded service did not include a subscription plan at that time, focusing instead on selling individual songs online and through Windows Media Player.
But Microsoft is now working with record labels and copyright holders in preparation for launching its subscription-based component, sources familiar with the talks said. The company held an event earlier this week in New York aimed at providing an update on the project's progress, sources said.
What's new:
Feeling Apple's sting, Microsoft is looking to diminish iTunes' influence with a new subscription music service. Sources say the company is also considering a more direct attack on Apple, seeking rights from copyright holders to give subscribers a Microsoft-formatted version of any song purchased from iTunes so they can be played on devices other than an iPod.
Bottom line:
The new service could complicate the delicate balance Microsoft has struck in the digital music business, by both providing key technology for companies such as Yahoo and Napster, while also competing with them.
The tentative features of the new service--which is still under development--include advanced community aspects and playlist-sharing. But sources say Microsoft is also considering a more direct attack on Apple, seeking rights from copyright holders to give subscribers a new, Microsoft-formatted version of any song they've purchased from the iTunes store so those songs can be played on devices other than an iPod.
Microsoft declined to comment specifically on the service.
"We think that the subscription model is very interesting," said Christine Andrews, lead product manager for MSN. "It is something that we will continue to look into, but we don't have anything specific to announce at this time."
The new service could complicate the delicate balance Microsoft has struck in the digital music business, by both providing key technology for companies such as Yahoo and Napster, while also competing with them.
That Microsoft is willing to complicate that relationship underlines how important the digital media business has become, analysts say. Microsoft and others see the future of home computing focusing increasingly around digital entertainment and consumer electronics, and in that space Apple has taken a substantial lead with its iPod music player and iTunes digital music store.
Indeed, at its developers' conference in San Francisco this week, Apple CEO Steve Jobs announced that the iTunes store had captured an 82 percent market share in the digital download business in May, despite ongoing competition from Microsoft, Yahoo, Sony, RealNetworks and others.
"The main thing for Microsoft as a company is to get as much use as possible for the PC as a home entertainment device, and one way to do that is ensure that there is a lot of readily available content," said Matt Rosoff, an analyst for research firm Directions on Microsoft. "Their concern is that none of the partner services will take off or will be effective, keeping Apple as a dominant platform."
Like others, must explain subscriptions
According to people familiar with the company's plans, the service is being developed as a piece of downloadable software separate from the standard Windows Media Player--a departure for a company that has historically pressed all multimedia content into its basic player software.
Much like the recently released Yahoo Unlimited subscription
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iTunes music store. There is no way that people are going to switch
once they have already invested in starting a digital music library
with iTunes. I have spent $270 bucks since December 2004. Throw
in an iPod shuffle that will not play windows media files and Apple
has got me locked in.
I don't mind that. ITMS is cheap, high quality, and just works.
iTunes music store. There is no way that people are going to switch
once they have already invested in starting a digital music library
with iTunes. I have spent $270 bucks since December 2004. Throw
in an iPod shuffle that will not play windows media files and Apple
has got me locked in.
I don't mind that. ITMS is cheap, high quality, and just works.
Recycle Bin (stolen from Macs way back), MSN Messenger, Tabbed Browsing, MSN Search, MSN Spaces, Desktop Search, and now this...?
Recycle Bin (stolen from Macs way back), MSN Messenger, Tabbed Browsing, MSN Search, MSN Spaces, Desktop Search, and now this...?
seventh in a three man race. Apple did the music sales better
than MS so now MS tries ubscriptions? But Real does
subscriptions better. MS is cheaper? Maybe, but it's MS. Windows
compatible MP3 player? that's the iPod, along with iTunes on
thePC. Windows Media format? Apple does it better, even with
MP3.
"At this point, the whole online music market is centered around
Apple and the other guys."
Wonder why???? Don't expect MS to tell you what music lovers
already know.
seventh in a three man race. Apple did the music sales better
than MS so now MS tries ubscriptions? But Real does
subscriptions better. MS is cheaper? Maybe, but it's MS. Windows
compatible MP3 player? that's the iPod, along with iTunes on
thePC. Windows Media format? Apple does it better, even with
MP3.
"At this point, the whole online music market is centered around
Apple and the other guys."
Wonder why???? Don't expect MS to tell you what music lovers
already know.
partners have to explain this model to consumers," said Jupiter
Research analyst Michael Gartenberg.
What are they going to explain that apparently at least 82
percent of consumers don't already know? Personally, I would
love to hear them explain the part about downloading
"replacement copies of iTunes-purchased song(s)"
Oh yeah, consumers will be delighted to do that, lol.
partners have to explain this model to consumers," said Jupiter
Research analyst Michael Gartenberg.
What are they going to explain that apparently at least 82
percent of consumers don't already know? Personally, I would
love to hear them explain the part about downloading
"replacement copies of iTunes-purchased song(s)"
Oh yeah, consumers will be delighted to do that, lol.
Microsoft is late to the game as usual, but who really cares about subscription base? Until the RIAA stops raping customers, p2p is where I'll go.
Microsoft is late to the game as usual, but who really cares about subscription base? Until the RIAA stops raping customers, p2p is where I'll go.
- Suck it up MS
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by lrd123
June 11, 2005 4:11 PM PDT
- Let's face it, with the Feds looking over their every move, i.e., MS can't rely on their old anti-competitive practices anymore, the chances of MS catching up with Apple's ITunes is slim to say the least. For that matter I would wager that anywhere MS doesn't have a foothold now in, they would have to buy their way in to compete, e.g., if they bought Rapsody or some other online service; then maybe they could make inroads. And that would come at a price, but they have the $ to burn.
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