Microsoft roots for the home team--Windows

Savvy baseball fans have found a way to watch hundreds of games live on the Web for the price of a single stadium ticket. But only if their PCs run Windows.

News.context

What's new:
Microsoft is offering a steep discount on live Webcasts of Major League Baseball games--but only to Windows users.

Bottom line:
To some longtime Microsoft watchers, this Windows-only bargain is the latest example of the software giant tying products and content, in this case one of America's favorite pastimes, to its operating system--often at the expense of non-Windows PC users and competitors.

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Microsoft, which just signed an estimated $40 million deal with Major League Baseball for Webcasting rights, is offering the bargain to subscribers of MSN Premium, a subscription-based product that doesn't work with the Mac or Linux operating systems.

Here's the deal: Sign up for MSN Premium and you get the first three months free, including access to all video- and audio-casts from MLB.com, according to MSN's Web site. After that, you pay $9.95 a month. For the full six-month baseball season, which runs from April to September, that comes to only about $30. (A CNET News.com reporter signed up for the promotion Wednesday and watched a Dodgers-Padres game on video.)

By contrast, Mac users--equipped with their high-resolution "cinema" displays--get stuck paying MLB.com's regular rate of about $100--three times as much. MLB.com's All Access offering, which includes live video and audio, goes for $19.95 a month, or $99.95 a season. MLB.com shuts out Linux customers altogether, at least for now.

Microsoft plans to launch a Mac version of MSN Premium in the future that will include MLB.com video- and audio-casts, a representative said, adding that the company has released MSN versions in the past for the Mac, but not for Linux. "MSN Premium isn't available to Mac customers yet, and there isn't an ETA for that," the representative said. "It's something we're thinking about for the future."

		Your take Offer your opinion What do you think about the Windows-only deal for baseball broadcasts?

To some longtime Microsoft watchers, this Windows-only bargain is the latest example of the software giant tying products and content, in this case one of America's favorite pastimes, to its operating system--often at the expense of non-Windows PC users and competitors.

According to Microsoft, the practice is popular with its customers. But critics have argued that this so-called integrated innovation shows how Microsoft leverages its operating-system dominance to drive sales in other businesses--in this case MSN--and maintain its grip on the desktop.

In the late 1990s, Microsoft drew criticism for exclusive content deals intended to promote its Internet Explorer browser at the height of the browser wars with Netscape. Yusuf Mehdi, the Microsoft executive who helped launch those plans, is now running MSN.

"Their modus operandi has been to use the Windows operating system to exclude competitors," contended Kevin O'Connell, an antitrust attorney with the Los Angeles firm Manatt Phelps & Phillips.

Analysts said Microsoft has legitimate business reasons for favoring Windows over rivals such as Apple Computer's Mac OS X when developing new products like MSN Premium. One is market share. Apple accounts for less than 5 percent of PC sales, making it less of a priority. Another factor is that Microsoft's Mac and Windows software teams work independently and are not required to "sync" their release schedules.

Microsoft has done a credible job of offering timely Mac products, according to some analysts. The company has recently begun introducing some features in its Mac applications before they appear in the PC versions, said Tim Bajarin, president of consulting group Creative Strategies.

"There's no question this is a cause of great frustration for Mac users, but it would be wrong to make a blanket statement that...(software applications) first show up on a PC," he said. "A legitimate question is why don't they simultaneously develop for the Mac and PC? The biggest reason is because the Mac group is a separate group."

In the past, Microsoft's bundling practices typically have involved including features such as browser and media player software in Windows--a plan that has ensured ubiquitous distribution because the operating system runs on more than 90 percent of the world's PCs.

With baseball, Microsoft is using the lure of premium content to sell MSN--and Windows.

Such efforts come with a high price tag. Microsoft last month agreed to pay MLB.com an estimated $40 million during a two-year period for Webcasting rights.

RealNetworks previously held the contract with MLB.com, paying $20 million for three years. It dropped out of the most recent round of bidding. Real, which ended its deal this spring, said it had trouble making money from the programming.

Microsoft has poured an estimated hundreds of millions of dollars into MSN in the past, building it into the world's second largest dial-up Internet service provider, with about 9 million subscribers as of late last year. But it has only recently turned its first profit.

Microsoft now hopes to refocus MSN as a broadband offering and a showcase for its Windows Media audio and video streaming technologies. Later this summer, MSN is expected to launch an online music store to compete with Apple's iTunes Music Store and America Online's MusicNet.

When it comes to baseball, however, MSN faces stiff competition. Its deal with Major League Baseball allows MLB.com to sell the same products and strike distribution deals with other partners, including AOL. The world's largest Internet service provider is offering live baseball audio Webcasts as part of its $14.95 a month premium package. MLB.com has also signed distribution deals with at least three cable broadband providers.

[Earl Benser]

No big deal...

I don't use a PC, I don't watch baseball. I don't use MSN. Seems
as though there's no reson to care about MS's latest leverage
maneuver- other than perhasp a legal point or two.

[David Mohring]

"Money For Microsoft" by Dire Warning

The realization that to get DRM'ed content will require you to do so though Windows XP and/or Microsoft ...

[ With deepest apologies to Mark Knofler and Dire Straits ]

"Money for Microsoft" by Dire Warning
Sung by Steve Ballmer, backing by Bill Gates

You must buy ...
You must buy Win-XP

You must buy ...
You must buy Win-XP

You must buy ...
You must buy Win-XP

You must buy ...
You must buy Win-XP

Now look at them bozo's that's the way you do it
You lock them always on the Win-XP
That ain't workin' thats the way we do it
Money for Microsoft from Dot Net usage fees
Now that ain't workin' thats the way we do it
Lemme tell ya them guys are dumb
Maybe get a licence on your little desktop
Maybe get a licence on everyone

They gotta install Media Player
Passport Dot-Net deliveries
They gotta take these applications
They gotta take these subscription fees

Look at that, look at that

See the little Win-Troll spreading spin we makeup
Yeah buddy thats our own fear
That little Win-Troll got them always complain'
That little Win-Troll makes us billionares

They gotta install Media Player
Passport Dot-Net deliveries
They gotta take these applications
They gotta take these subscription fees

They shoulda learned to use the Linux
They shoulda learned to use them Macs
Look at that user, we got it stickin' to the customer
Man we could have some fun
And their down there, whats that? Protesting noises?
Plannin' on me dancing like a chimpanzee
That ain't workin' thats the way we do it
Get the money for Microsoft get our usage fee

They gotta install Media Player
Passport Dot-Net deliveries
They gotta take these applications
They gotta take these subscription fees

That ain't workin' thats the way we do it
You lock them always on the Win-XP
That ain't workin' thats the way we do it
Money for Microsoft from the license fee
Money for Microsoft from subscription fees

David Mohring - Original author

See: A plea for relief from Microsoft's escalating anti-competitive tactics.
http://itheresies.blogspot.com/2004_03_01_itheresies_archive.html
An open letter to antitrust, competition, consumer and trade practice monitoring agency officials worldwide.

[TV James]

Bogus argument

My Verizon DSL service comes with free MSN Premium. And my MSN Premium comes with free MLB games. Those bastards!

This is a bogus argument. To read most of the content on Entertainment Weekly, you have to have an AOL account, subscribe to Entertainment Weekly, or buy a copy on the newsstand. Big deal.

Microsoft made a business arrangement with Major League Baseball that made more sense to MLB than their Real did. Which means that someone somewhere (Microsoft) is subsidizing the cost for the low cost subscription.

I seriously doubt that a lot of Mac users are complaining because there isn't an MSN Premium for them. And if Microsoft made one, I doubt a lot of Mac users would use it since they blindly hate all things Microsoft.

[hutchike]

MLB obliged to work with Real Player

As I understand it, Real Networks has a contract with MLB Advanced Media that obliges MLB to provide content in Real's format. If this is the case, then I can't see how MLB or Microsoft can lock-out Mac and Linux users, since Real Player works on all these platforms? Somebody should investigate this further...

re:MLB obliged to work with Real Player

I am sorry but you seem to be ignorant on this case. Real has nothing to do with MLB anymore, their contract has been expired or is expiring soon. MLB can sell its content to anybody they want, Real didn't like the deal with MLB and thus they didn't renew it. Also Real is trying to force its users to buy expensive other content. When you try to download their free real player they are trying to trick you into buying lots of other stuff they are selling.

I support Microsoft's decision

I think News.com is trying to make a big deal out of this, but as a consumer I don't see a problem at all. It is just another CNet's attack on Microsoft for competitors.

Just like NFL Ticket

How is this any different than Direct TV having a monopoly on NFL games? Except for the price being higher for the football games and the fact the signal is received on my TV not my PC? In the case of the NFL/Direct TV relationship I have to get a dish, subscribe to a certain level and then pay at least $179 for four months of football!

I agree with earlier comments, just the press piling on Microsoft!!

[Jonathan]

Naaa a Monopoly does hurt the market.

THIS is the exact reason why Microsoft should have gotten the smack down during the antitrust trial. But just like a negligent parent the DOJ let them off with a warning.

For all you parents in the crowd tell me what happens when a child is never deciplined and taught right from wrong.

This is BS pure and simple.

Microsoft is abusing its monoply position

Microsoft continues to surprise me with its complete and utter disregard for antitrust laws. Especially since it had so much trouble with it in the past. IBM was in the court for anitrust violations and so was Intel. Neither of them lost but they have both learned from that experience and it shows. Microsoft on the other hand lost but is back to its old ways of doing business and is flagrantly showing the middle finger to competition.

No, CNET is abusing its monopoly

It is CNet which really abuses its monopoly by cheating against its customers, not Microsoft. For example, Office 2003 is available only for Windows, because it is meaningless to offer it for Linux. The macoffice is not office 2003 and it is a software by itself. So I think CNet is really cheating their readers by misguiding them to attack Microsoft. I personally know that CNet reporters hate Microsoft and probably getting paid by some of its competitors.

Hooray for M$N & Up Yerz

This is just another example of Micro$oft's piggish ways. Their
'innovation' is bought or stolen, if they can't buy or steal it, they
simply crush it. Micro$oft is a boil on the butt of humanity!
Don't feed the pig -- eliminate any and all M$ software from
your life and be free!