Microsoft planning music subscription service

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service, the new Microsoft offering would have built-in playlist-sharing features that would allow members to replicate much of the communal appeal of file-sharing.

The company also appears to be planning aggressive promotional pricing in the early months of release, likely to be competitive with Yahoo's $6.99 per month fees, sources said. That could be bad news for RealNetworks and Napster, each of which charges close to $15 for the versions of their subscription services that allow transfer of music to portable devices.

"The most important question is what ability Microsoft and its partners have to explain this model to consumers."

--Michael Gartenberg, analyst, Jupiter Research

The ability to download replacement copies of iTunes-purchased song would be aimed at boosting the fortunes of Windows-compatible MP3 player manufacturers such as iRiver and Creative Technologies. Because Apple does not license its FairPlay copy-protection format to other companies, iTunes-purchased songs can be played directly only on the iPod.

Sources said that the iTunes replacement plan would require agreements from multiple copyright holders, and may not come to pass, however.

Analysts caution that Microsoft will have the same problem that its partners have had in persuading consumers to adopt the "rental" model, in which access to a vast catalog of music is available all at once, but all the music vanishes when a subscriber stops paying. But if Microsoft is able to make that leap, its presence in the market could actually help its rivals as consumers finally adapt to the subscription idea, some said.

"The most important question is what ability Microsoft and its partners have to explain this model to consumers," said Jupiter Research analyst Michael Gartenberg. "At this point, the whole online music market is centered around Apple and the other guys."

[202567676114204908075970046337]

MS is so jealous

they can't see straight. They're going to allow people to dl a MS formatted copy of any song purchased on iTunes? If I was a copyright holder, why would I agree to this? whats the point? And a month into doing this little scheme, Apple will announce they are licencing their Fairplay DRM, effectively cutting off MS at the knees.

[202567676114204908075970046337]

MS is so jealous

they can't see straight. They're going to allow people to dl a MS formatted copy of any song purchased on iTunes? If I was a copyright holder, why would I agree to this? whats the point? And a month into doing this little scheme, Apple will announce they are licencing their Fairplay DRM, effectively cutting off MS at the knees.

[rodnarms]

Forget it MS

82% of people downloading digital tunes are already using Apple's
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.

[rodnarms]

Forget it MS

82% of people downloading digital tunes are already using Apple's
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.

[hion2000]

Awesome innovation, Microsoft (yeah, right)

Soo... how many more ideas are they gonna steal?

Recycle Bin (stolen from Macs way back), MSN Messenger, Tabbed Browsing, MSN Search, MSN Spaces, Desktop Search, and now this...?

[hion2000]

Awesome innovation, Microsoft (yeah, right)

Soo... how many more ideas are they gonna steal?

Recycle Bin (stolen from Macs way back), MSN Messenger, Tabbed Browsing, MSN Search, MSN Spaces, Desktop Search, and now this...?

[Earl Benser]

When MS misses the boat...

... they really come up short. In the world of 'also ran's, MS is
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.

[Earl Benser]

When MS misses the boat...

... they really come up short. In the world of 'also ran's, MS is
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.

[Terry Murphy]

Now this is entertainment

"The most important question is what ability Microsoft and its
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.

[Terry Murphy]

Now this is entertainment

"The most important question is what ability Microsoft and its
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.

[bobby_brady]

RIAA benefits more from subscription base

That's my opinion. They know that once the user doesn't pay their monthly fee, all the songs they have vanish.

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.

[bobby_brady]

RIAA benefits more from subscription base

That's my opinion. They know that once the user doesn't pay their monthly fee, all the songs they have vanish.

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.

[dinkelburt]

So what the hell?

How is the subscription service the way to go? It never ceases to amaze me how these companies dangle this tripe in front of me and expect me to bite. When I buy a CD, I want to keep it, not rent it. Now if they could only drop the price per song and offer lossless format options... there's your silver bullet. Until then, back to p2p...

[dinkelburt]

So what the hell?

How is the subscription service the way to go? It never ceases to amaze me how these companies dangle this tripe in front of me and expect me to bite. When I buy a CD, I want to keep it, not rent it. Now if they could only drop the price per song and offer lossless format options... there's your silver bullet. Until then, back to p2p...

Bill has missed the point (again)

iPod is not the best MP3 player in all categories and is rivaled by many others, but until the other MP3 player rival the ease of use they will not out sell the iPod, regardless of what music service is behind them. And what's with these music services being described as 'subscription' services ? When I subscribe to a magazine I get to keep the ones I received after I stop paying, these services are music rental services.

Bill has missed the point (again)

iPod is not the best MP3 player in all categories and is rivaled by many others, but until the other MP3 player rival the ease of use they will not out sell the iPod, regardless of what music service is behind them. And what's with these music services being described as 'subscription' services ? When I subscribe to a magazine I get to keep the ones I received after I stop paying, these services are music rental services.

[sanjef]

If MS products are so great...

... then why do Microsoft employees have to use black headphones to disquise the fact that they're listing to their iPods on the MS campus? I'm referring to an article at Wired magazine's site.

[sanjef]

If MS products are so great...

... then why do Microsoft employees have to use black headphones to disquise the fact that they're listing to their iPods on the MS campus? I'm referring to an article at Wired magazine's site.

[lrd123]

Suck it up MS

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.

[lrd123]

Suck it up MS

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.