Microsoft's Online Music Plans Hit Rivals' Shares
Posted on: Saturday, 11 June 2005, 10:23 CDT
SEATTLE (Reuters) -- Microsoft Corp., the world's largest software maker, said on Friday it was interested in offering an online music subscription service, sending shares of online music rivals lower on Friday.
Microsoft, which launched its MSN Music download service last year to rival Apple Computer Inc.'s iTunes, said on Friday that "offering a subscription service was an important step in helping people find and discover great music online."
"We are actively investigating the subscription model, but we don't have anything to share today," Christine Andrews, lead product manager of Microsoft's MSN Internet division said, "Once we are ready to talk more, we'll let you know."
Reports that Microsoft was getting closer to launching a service hit shares of Apple, sending its stock down nearly 5 percent to $35.81.
Shares in RealNetworks Inc., the largest provider of music subscription services, fell over 3 percent to $5.01 on Friday.
Music subscription services, such as RealNetworks' Rhapsody service, allows users to stream an unlimited number of songs for $10 per month, instead of charging users for each downloaded song.
Napster Inc., which was instrumental in the spread of downloaded music, and Yahoo Inc. also offer music subscriptions. Napster shares fell 4 percent and Yahoo shares dipped 1.7 percent.
Microsoft is betting users will want to use subscription services to transfer songs to their digital music players.
Currently, only songs ripped from CDs or purchased for download can be loaded onto digital music players like Apple's popular iPod player.
Microsoft has been trying to get service providers to adopt its anti-piracy software technology that will allow users to transfer songs from a music subscription service onto portable music players without being able to pirate them.
So far, Rhapsody has offered its users the ability to transfer songs to a portable player for $15 per month.
-----
On the Net:
Related Articles
- Qbox Launches Free, Streaming Social Network Music Service With Unlimited Access To Over 21 Million Songs
- PacketVideo Teams With NTT DoCoMo to Deliver Advanced Music Services to Japanese Mobile Consumers Using Microsoft Windows Media Technology; Universal pvPlayer Brings to Life First-Ever Support of Windows Media Technology Protected By DRM on FOMA Handsets
- Sprint First to Announce One Million Song Downloads for Mobile Music Service
- Microsoft Helping MTV Orchestrate Music Service
- Feeling the 'URGE,' MTV Networks Announces a New Digital Music Service in Collaboration With Microsoft
- Yahoo Sticks to $5 Music Service, Launches Ad Push
- Microsoft Launches Version of Online Music Service
- Apple Launches ITunes Music Service in Europe
- Microsoft Co-Founds Digital Music Service
- Apple to Launch Online Music Service
 |
 |
User Comments (0)
RSS Feeds