Petteri Pyyny
14 Jun 2005 1:06
Microsoft said on ZDNet's interview that it is "considering" a subscription-based music service later this year. The plan is an obvious threat to other online music stores that embrace the monthly subscription model, most notably to Napster. Napster is also using Microsoft's WMA technology and DRM service in its music store, so Microsoft's plans could work against one of its largest technology licensees.
Microsoft launched its own per-song online music store back in September, 2004, but haven't managed to topple Apple's iTunes in terms of popularity and is also lagging behind Napster in terms of customers and revenue.
According to Microsoft, the new service would offer features like playlist-sharing and would provide additional "community features" that would allow users to interact with each others.
Microsoft's announcement sent Napster's shares down by 4 percent, while Apple's share price fell 4.9 percent after the report was published.
More information:
ZDNet
BBC