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Microsoft to Launch MSN Music Service in 2004
securitas writes "SmartMoney.com reports that a Microsoft spokeswoman confirmed plans to launch an online music download service in 2004 via the MSN Web site. The story was first reported in the Wall Street Journal (paid subscription required). Microsoft may undercut the per-song prices of competitors Apple iTunes and Roxio Napster. A reliable source is cited as saying that Microsoft has been in talks with major music companies and a post for a senior-level marketing position for the service was added to Microsoft's recruiting site last week. Observers expect that the company will use Windows or the bundled Windows Media Player to gain a competitive advantage over other services that require a software download to use them. Interestingly, in this May 2003 analysis piece about Apple's iTunes Microsoft denied any plans to launch a music download service. More at CNet."
I smell another anti-trust suit coming.. isn't this yet another blatant violation of the suit they settled not so long ago?
Please direct all bug reports to
I heard they were going with Ogg Vorbis for maximum cross-platform compatibility.
1. Spread Fear, Uncertainty and Doubt by announcing intent to compete
2. Launch inferior product tied to monoply powered desktop OS.
3. Work to bring service nearly to par while undercutting all competition with illegaly earned war chest.
4. Destroy competitors and cease innovation.
5. PROFIT!
So now we're going to be complaining about the Blue Sound of Death? What would that even sound like? Is it anything like one hand clapping?
Now we're in for it. I can imagine the DRM attached to an MSN music service would the most restrictive yet, allowing only one copy of each file downloaded on one PC, ever. The real run happens when the clueless user installs the latest security patch, only to find that none of their music works, and reads the fine print to discover that a PC is defined as "the unique collection of hardware, software, and specific Windows version that exists at the time of each music download". Don't like it? Well, if you had never stolen that music and put J.Lo out on the streets, this never would have happened, Bobby. Now, pony up for another copy of that track and we'll call it even, and might not even send Lars and Mungo to your house for a visit...say, would you like to buy a Longhorn upgrade?
"Linux doesn't exist. Everyone knows Linux is an unlicensed version of Unix"- Kieren O'Shaughnessy
So this would explain why MS were so concerned about shipping a "substandard" version of windows without WMP... ...Otherwise they wouldn't be able to tie in all those European customers to a hobbled music service with a "oh look, you already have the required software installed" media player...
It's not that MS is necessarily killing competitors with each little feature, its more the way they use each toe hold to push forward into the next market and the next market and so on. Even if they were the worlds best and nicest software producer I think this kind of monopolistic action is extremely dangerous.
1984 arrives at long last and we discover that it isn't the government watching us, but Bill Gates...
Could this be Netscape vs. Internet Explorer all over again?
Once again, Microsoft is late to the game. Apple started it this time with iTunes (where it was Netscape with the web browser). Initially, Bill and MS were reluctant to get on the bandwagon with the Internet. Then, it started to leave without them. They smell money and take off after it. "Well, we'll just give our browser away for free and because it's installed by default, why would anyone pay for Netscape?" Of course many "average" users didn't blink and eye used IE and Netscape died.
Are we going to have the online music wars now? MS, again late to the party says, "Well, we've got Media player already installed by default and it's free. Now all we have to do is undercut everyone else on the prices of singles and albums and we'll own the market. If anyone matches our prices, heck, we've got so much money in the bank, we'll just give the music away. We'll also slip some DRM in and make our compression technology proprietary. Customers will love us for free music and the RIAA will love us for DRM."
Nahhh, Microsoft is definitely not a monopoly.
Co-founder and designer at Music Nearby: http://musicnearby.com
The Sherman Act prohibits the use of a monopoly to leverage entry into other markets, and it'll be a clear violation of the Act if they bundle their music download service with WMP.
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Hang on, don't they already do this? At least in the UK, I already have access to the service, and have downloaded 4 tracks already, which could be burned to a CD for 99p ($1.60?) each. It already works via WMP 9. Maybe we're just the guineapigs.
BTW, due to an interesting set of circumstances, you can download Tubular Bells parts (sides) 1 and 2 as one 99p track each, or the whole album for 7.99! (assuming 1 credit=1p; this can vary)
Phil
I actually feel more sorry for the non-Apple competitors in this arena. They're largely tied into the WMA and Redmond OS and have alread surrendered their souls to the new comptetitor. Talk about squeezed from both sides. At least it's unlikely that competition from Micro$haft will completely destroy the Apple solution.
It is odd that such a 'technology leader' is always second (or later) to market. I guess they have to rely on the true innovators to show them the path to money. "Your potential, Our passion?" finally makes sense now, as long as our potential is the one to create new markets for them to dominate.
Just remember, if you are in the software industry, every dime you spend on Office/Windows/... is a dime our passionate friends will use to take your market away once it becomes lucrative enough to pursue.
The problem is that MS includes media player with the default windows install. In fact, there is no way to remove it. Furthermore, they have put their own add on software into the OS at a very low level and load at system boot (ala IE) to make their software appear much faster. Unless they agree to do that with iTunes, musicmatch, etc, then they are abusing their monopoly.
This would basically represent the exact anti-trust case which they lost. The justice department could just replace all instances of IE with Media Player and resubmit the lawsuit. And just to be consistent, after the DoJ won the case, they would have to roll over and give MS a sweetheart deal.
I'm posting anonymously to help protect my identity because I *gasp* work for a member of the RIAA.
I can tell you that these types of services are beginning to bring some interesting problems to the record companies, namely what royalties are paid to the artist. In the actual recording contracts, royalties are VERY specific and their definition is not very open ended. This mainly helps the recording company by taking certain monies from royalties and helps avoid confusion. And then something like music downloading comes along, which simply does not fit into ANY of the pre-determined categories in the royalties contract. And believe me, there are many specifically defined categories. This is especially true for some older contracts, where music downloading was not really a viable option. In those instances, it's attempting to fit the square peg in a round hole.
On a side note, the RIAA members may have resisted this, for this specific reason. Royalties are obviously huge for the RIAA members and attempting to pay royalties on a category that does not fit into the recording contract is problematic, to say the least.
Either way, it's simply food for thought.