December 22, 2004 10:11 AM PST

HMV taps Microsoft for help with music service

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British music giant HMV on Wednesday announced plans to launch a digital music service next year, using software being developed by Microsoft.

Music downloads from the service will be compatible with the Windows Media Audio standard and usable by more than 75 portable players currently on the market, HMV said. Portable players, as well as the service software, will be sold in the company's stores and online. The service is slated to launch in the second half of 2005.

Microsoft applications under development for the service include a customized jukebox that will let users select, purchase and manage their music online--all in one place. HMV said it intends to spend about $19 million (10 million pounds) on the download service and initial marketing.

The digital-music market in the United States and abroad is currently dominated by Apple Computer's iTunes, which is available in the United Kingdom and other European countries. Recently, there have been complaints about Apple's international pricing for iTunes.

HMV's service will not be compatible with Apple's iPod, and when the service is launched next year, HMV stores will stop selling iPods, a representative for HMV said.

"It's great to be involved in such a leading-edge retail project that will support an explosion of choice, enabling music fans to buy music in-store and online--in fact anywhere--on a whole range of devices from different manufacturers," Microsoft U.K. managing director Alistair Baker said in a statement. "The partnership extends to the development of the (software), which will be constructed by a joint team from Microsoft and HMV."

HMV already operates a subscription music download service via its Web site, where consumers can get 50 tracks for about $9.57 a month. HMV's non-U.K. Web site is run through a partnership with Amazon.com. The companies did not say what impact the new service would have on the existing service.

Reuters contributed to this story.

7 comments

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Blah, Blah, Blah iTunes is going down Blah, Blah, Blah
HMV is much too late to the game (the overpriced losers are still
around?). A few months back wasn't it Virgin music that was
going to finally give Apple run for it's money, backed by similsr
statements by an MS halfwit. Oh, and then it was MSN music that
was finally going to crush Apple lol. Why does Cnet bother - just
announce that company 'P' is going to offer an on-line music
store, based on Microsoft codecs and Digital Rights
Management, that hopes to distinguish itself from the other 15
existing on-line stores selling the exact same thing. Eventually
(2006?) there will have to be some consolidation with the
Window's media stores, as they will only manage to dilute each
others sales.

Apple's pricing in the UK, where the price complaint came from,
was the result of greedier music exec's there - wouldn't expect
HMW's pricing to be any different.

Too many millions with iPod's now, with a an accelerating user
base. With Apple's flash based players and iTunes enabled
phones by Motorola coming out in early 2005... ummm... well...
Posted by dirk128 (31 comments )
Reply Link Flag
You're Whistling Past the Graveyard...
Typical Apple bravado from a typical Apple fanatic. The Macintosh was going to dominate desktop PCs too, remember? "Superior technology" and all that crap?

This battle is a LONG way from being over, and the markets have demonstrated time and time again that proprietary systems are at a disadvantage.

Oh, and go ahead and talk about your Motorola music phones all you want. Microsoft Smartphones with music capability began shipping, what, LAST YEAR?

You can even buy smartphones now that play VIDEO that you recorded on a DVR. Get a clue, loser.
Posted by (127 comments )
Link Flag
hey losers
wasn't this story about music sales? yet you fan-boys couldn't help but turn it into a Mac vs MS debate. get a life.
ipod and itunes suck because they're a closed system. nobody I know would buy a CD player that only played WEA label music... why is downloaded music any different.
I'll keep on pirating until we get an open, universal standard with reasonable prices. and my mp3 player will be an open one, no exclusive preferences allowed.
Posted by skeptik (590 comments )
Reply Link Flag
 

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