Microsoft to Launch Online Music Store

yonnage writes "Microsoft is expected to enter the online song store market this week, which should put the software giant head-to-head with Apple Computer in the music business at last. The launch of Microsoft's iTunes rival will be timed along with the beta release of Microsoft's new Windows Media Player 10, expected on Thursday, sources say. The store will also be in beta mode, lacking some of the features that will be added later, sources said."

Comments

Tin foil alert level at Orange.

[garcia]

None of these hurdles is trivial, particularly in a business such as selling downloadable music, where actual margins remain only a few pennies per song sold. The real core of Microsoft's goal has little to do with e-commerce and everything to do with selling Windows, analysts said.

No it has nothing to do with selling Windows. It has to do with furthering the MSFT domination in every single technological market that they can slide their way into. The XBox hardware doesn't make them money but they are still getting their name out there and making money via some other channel (additional hardware, monthly Live subscriptions, royalties, whatever).

This is going to be no different. Get the people used to the MSN Music Store. Get them buying songs. Get them buying hardware. Get them used to seeing it in Windows. Make it an integral part of Windows. DRM the BIOS, DRM the OS, and DRM the Music, DRM the hardware/player, RIAA is happy, people get their Music, people are happy, money comes in, Bill is happy.

When the market is comfortable with seeing WMP and MSN media everywhere they are going to LOVE seeing it in their favorite theatre, on their favorite DVD, etc. Then the MPAA is happy and they will happily embrace the format which they are currently rejecting.

What I want to know is when WMP is going to just NOT work when you won't let it phone in what you have been watching/listening to. I've been waiting for that day to come. I wouldn't be surprised if it happened in WMP10-1 or WMP11. It's not like 99% of the people don't know that it is doing it and it's not like they care if it is. Most of these people don't have firewalls and even if they do they happily click to allow it to connect out permanently. Anything to make that annoying little box stop popping up.

Tin foil alert level is currently Orange but may raise when the MSN music store gains a foothold.

Re:Tin foil alert level at Orange.

[DarkBlackFox]

Theoretically it won't take long to get a foothold. Internet Explorer isn't the most widely used browser because it is "the best," but because it came bundled with Windows- it's already there for people to use. The same may happen with this, if either 1) it's bundled with the retail/OEM versions of XP with Service Pack 2, or 2) with Automatic Update (and install) conveniently turned on by default on most XP SP2 machines, I wouldn't be at all surprised to see it pop up out of seemingly no where. Imagine all those people who use Internet Explorer "because it's there" suddenly see a "buy legal music online from Microsoft!" icon suddenly appear on the desktop. Why hassle downloading and installing iTunes, when it's already there?

I usually try to distance myself from the tinfoil hat crowd, but given Microsoft's history of "success" in the desktop software market, it wouldn't at all surprise me to see this hapen.

Prediction

[daveschroeder]

Microsoft will immediately become number two, and perhaps number one, if not almost straight away, with a shoddier product, and years earlier than they'd otherwise have been able to had it not been for Apple once again pioneering this market.

Re:timing?

[Bender_]

but really, if all of the others haven't really made a dent in the iTMS market share, how does MS intend to?.

I guess the same thing was said a while ago by the executives at netscape.

I Think Not

[hipster_doofus]

I quit using Napster because I didn't really like the Windows Media Player, or the Microsoft DRM technology. Why would I switch back just because MS has their own music store? The music store marketplace is becoming too saturated now and the only way for anyone to distinguish themselves is with a great hardware accessory - like Apple's iPod.

Apple is well in the lead and I don't see them losing the lead unless MS comes up with something better than just another "hey, me too!" store.

Re:I Think Not

[cephyn]

But they will. What many people forget is that Microsoft tends to make good, if not great, products when they don't have a monopoly. Once they have that monopoly, they tend to abandon it and/or lose focus on improving it.

Where's the love, man?

[The I Shing]

There's no way that Microsoft's music store will anything like the cachet that the iTunes Music Store has. Microsoft, as a hip brand name, trails far behind Jenny Craig Mac & Cheese. But then again, if they make their songs playable on every non-iPod device out there, they'll pick up the lion's share of the market in no time. Good luck getting it all to work right, though.

Alpha version, that is.

[Anonymous Coward]

"The store will also be in beta mode, lacking some of the features that will be added later"

No to be a picky bastard or anyhing, but projects without full features was called alpha state to me, last time I checked, while full featured, still in-test is beta.

Why MS will succeed at this

[teamhasnoi]

MS is the leader in beating dead horses. The XBOX, security, and now - music.

\ MS will say that they are at the top of their game, until they are (which in some cases is never). They have the money to make mistakes like no one else. They can have no features, barest functionality, poor implementation, and still create hype and users - all through the marvel of $$$.

The Apple iTunes store doesn't have anything to worry about for a long while, but MS will beat their dead horse until its a threat. Not a big threat. Nobody cool is going to use MS's service.

At the end of the day - that's what it's all about.

Beta is being misused!

[cexshun]

The store will also be in beta mode, lacking some of the features that will be added later, sources said.

Seems to me that lately, Beta no longer means a testing phase. It now means "Hurry and saturate the market with an incomplete product so we can make money now and take business away from competitors!"