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July 5, 2007 11:33 AM PDT

Samsung store in Europe

by Matt Rosoff

When Microsoft released its Zune player-store-software combination, it effectively drove a stake into the heart of PlaysForSure, the company's logo program that identifies Windows Media-based online stores and the players that work with those stores. Sure, Microsoft still claims that it's equally committed to both initiatives, but PlaysForSure partners have a right to be concerned that their technology partner is competing directly against them.

Samsung was one of Microsoft's most steadfast digital media partners: it released one of the earliest Portable Media Centers (portable audio-video devices based on Windows Mobile software, which beat the video iPod to market by a year) and was one of the charter PlaysForSure partners. But the company also was one of the first to see the writing on the wall: in September, right after the Zune rumors began, Samsung announced plans to contract with MusicNet, a back-end provider of music stores, to provide a subscription-based online store in Europe. (Yes, this is the same MusicNet that was originally founded by a couple of the big record labels and provided expensive and heavily restricted downloads to end users, but its ownership and business model have changed.) The store is integrated with the new Samsung Media Studio software that ships with Samsung portable players. In other words, Samsung is following in Microsoft's footsteps--and of course, both are following Apple--and releasing an integrated set of devices, stores and PC client software.

Apparently, the store launched today in the U.K., France and Germany. This probably won't affect too many people--April 2007 NPD stats listed Samsung as the No. 5 music player manufacturer, behind Apple, SanDisk, Creative Technology and Microsoft. Nonetheless, the creation of new music stores could be good for the record companies, who are seeking any leverage they can get against Apple.

Speaking of, Universal Music apparently confirmed to MacWorld that it has signed an "at-will" contract with iTunes. This means it could offer some of its artists' songs to other music stores as exclusives, or it could pull songs from iTunes if Apple refuses to budge on its univeral pricing policy of $0.99 per song.

Matt Rosoff is an analyst with Directions on Microsoft, where he covers Microsoft's consumer products and corporate news. He's written about the technology industry since 1995, and reviewed the first Rio MP3 player for CNET.com in 1998. He is a member of the CNET Blog Network. Disclosure. You can follow Matt on Twitter @mattrosoff.
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About Digital Noise: Music and Tech

Matt Rosoff is an analyst with Directions on Microsoft, where he covers Microsoft's consumer products and corporate news. He's written about the technology industry since 1995 and reviewed the first Rio MP3 player for CNET.com in 1998. He's also a bass guitarist and an avid collector (and digitizer) of LP records. DISCLAIMER: This blog contains the personal opinions of the author and does not necessarily represent the opinions of his employers or of CNET Networks. As an IT industry analyst, the author occasionally agrees to nondisclosure agreements from Microsoft or other companies, and he will not violate the terms of such agreements on this blog.

He is a member of the CNET Blog Network and is not an employee of CNET.

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