In a bid to compete with Apple's iTunes music service, Microsoft is planning to set up its own subscription-based online music store later this year. It is said to be working with record labels and copyright holders in preparation for the launch. Last September, the company unveiled its MSN-branded music site but it didn't have a subscription plan." From the article: "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." [Slashdot]
Well, that would put a damper on Apple's lock-in strategy, which is based on the fact that people who own iTunes songs need to play them on Apple players. It would therefore also eliminate Apple's main strategic for holding back from offering a subscription service.
If anybody has deep enough pockets to do make an offer like that, it's Microsoft. And they DO have deep enough pockets.
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