Microsoft Developing iPod, iTMS Competitor

Software writes "Reuters reports that Microsoft is developing an iPod and iTunes Music Store competitor. Few details are available, but it's known that Robbie Bach (the man behind the Xbox) is heading up the project." From the article: "Most iTunes rivals charge monthly fees to access a catalog of entertainment, but some allow consumers to buy individual songs for about $1 each. Microsoft's service will emphasize the pay-per-download, or a la carte, model, the sources said. A subscription component will also be offered, according to early accounts of the planned service. One source, who has seen a demonstration of the service, said it was an improvement over iTunes."

Comments

XBox/360 integration?

[stratjakt]

Buying tunes through XBox live marketplace, and transferring them from the box to the player would open the door to a huge untapped group of consumers who don't have (or want) a PC, but probably have (or wouldn't mind) a game console.

I would be shocked to find out that this isn't the route MS plans to take, the 360 being your entertainment-hub and all.

It'd have to be an unmicrosoft solution

[grahamsz]

However any music store that intends to compete with itms is going to have to support the iPod - there are just too many ipods aren't to try and do anything else.

So if ms did support both the iPOD and their on Plays4Sure players, then i think they would stand a good chance to uprooting Apple. Especially considering they can run the store at a loss for years.

Re:It'd have to be an unmicrosoft solution

[jumpingfred]

Do you have any links to these cheaper and better products that replace the ipod?

When comparing mp3 players based on memory size I have not seen players significantly cheaper than ipod except down at the 1/2 gig size. Things like iriver have included fm radio or ogg support or record features so they may be better but they come in at about the ipod price.

Re:It'd have to be an unmicrosoft solution

[bubkus_jones]

So you're comparing one of the richest companies in the world with a minimum wage earner. I think that might be where you're hiding the orders of magnitude difference.

Could you define this "Orders Of Magnatude Difference" because I'm obviously not getting your meaning. I'm making a comparison, to try to get you to see how little it effects Microsoft.

Yes, a $2 million daily fine for non-compliance is a hefty fine. However, don't you think their accountants and lawyers have already figured out that plaing fair and by the rules would hurt their business/profits more? They would have to pretty much redesign Vista from scratch to enable a user to not install or easily and completely remove IE/WMP/etc., not to mention opening up the Office file formats so people don't have to use/pay for Office to be able to work their files.

Part of the reason why MS is still at the top is because most people think that they MUST use Windows/MSOffice, and for a lot of people, they have to. It's also why IE still has a 90% browser market share. Most users are thinking, "It's already in Windows, and so many things "require" it, so why install anything else?"

THAT is MY point.

Re:It'd have to be an unmicrosoft solution

[suckmysav]

"Frankly, I'm confused why Microsoft thinks it needs to be designing a music player in the first place. This company enters so many markets for no valid reason."

No valid reason that you can think of.

Microsoft have spent the last 30 years making billions off the Windows Tax. Virtually none of their product lines outside of their Windows & Office products have ever made them any money. Were Linux with Open Office to really take off for example they would find themselves in a great deal of trouble. MS execs quite rightly feel that they need to find new ways to make billions *before* the Windows/Office cash cow gets slaughtered.

Personally I hope they fail, and I think I will be right.

Whatever happened to Urge?

[LoKi128]

I thought Microsoft partnered up with MTV to make Urge. Are they going to have multiple subscription services? If so, will customers have to pay $5/mo or whatever for each? Or will one payment grant you access to the "Microsoft Music Network" that has Urge, Splurge, and whatever other music store they come up with in the future?

Re:Antitrust and the Media Player ?

[jawtheshark]

Yes, but does it matter? Bundling has worked and spoiled the marketplace. Take IM for example. A few years ago, it was ICQ, AIM. Other latecomers came, like Yahoo! and Google Talk but never seemed to have taken any marketshare. Another newcomer was MSN Messenger. One would think that ICQ/AIM would still be tops dogs. Not true, even not in Europe. For a while ICQ seemed to be most popular over here, but I worked at a school for a while and the only thing the students seemed to use was MSN, all with a hotmail.com address including Passport. I still both have an AIM and an ICQ account (I know they are technically the same), but strangely enough nobody ever seems to be online there anymore.

Media player? Same thing: none of these kids uses WinAmp, iTunes, Realplayer to play media. They all use our good old friend Windows Media Player. Myself I use "Media Player Classic", but that's just me. The thing is that the iPod will make it a tad bit more difficult. Alternatives do not seem to exist for them. Sure, I think the iPod will make it difficult to actually force WMP on people, but those that don't have an iPod will use and recognise WMP. If they brand it correctly (the hardware "replacing" the iPod), the brand recognition will work and they will sell devices.

I never have seen a WMP-less Windows installed anywhere. Even in Europe, we have lost...

Re:OK... but why

[Tx]

Remember when Microsoft entered the handheld market, and everyone said "oh, Windows CE suck" "why should I give up my palm" etc etc? Now Microsoft rule that market.

See, Microsoft don't need you to give up your iPod. They do know how to play the long game. It took them a while to get Pocket PC somewhat right (then they broke it again, but that's another story), but they got there in the end. Moreover, they used the integration with Windows/Office as a selling point (WMP is on every Windows PC, you can see where that analogy leads).

Point is, they don't need this to be an instant success, they just need a foot in the door, the rest is down to time.

This has to be...

[thatguywhoiam]

... one of the most arrogant comments I've ever seen out of a Microsoft shill, and we've all seen our share:

"They have been developing technologies that have really good music discovery and community," another source said. "iTunes is the 7-11 (of music stores). You don't hang out there."

They have got to be kidding. People spend hours sifting through iTMS. I know people who never close it!

iTMS is like Amazon, people just use it for basic music reference at this point. These people are on crack.

Re:innovative

[pete6677]

This is a perfect example of "Microsoft Innovation" like Steve Ballmer was yammering on and on about during the anti-trust trial. Let someone else do the work and when something is successful, copy it and extinguish the original. But in this case, I don't see Microsoft's usual "innovation" plan succeeding.

FFMPEG

[ink]

Yes, it does work OK.

But ffpmeg (MPlayer/VLC) work much better. As more folks start using MPlayer/VLC to watch media, there will be less need for the WMV (and QuickTime) proprietary protocols.

So, they can ignore the Macintosh at their own peril.

MS good for consumers

[oneofabillion]

is everyone here so anti-ms as to not notice that competition is GOOD for customers? ipods are EXPENSIVE and so far there is not viable competitor that could force apple to lower their prices. is ms could do that, what's not to like? why is everyone so focused on giving ms grief?

Re:See also: why get into the browser market?

[faffod]

iPod isn't a platform, but the iTunes music store is. Apple already sells video, how long until they feel that they have enough infrastructure in place to sell full length movies? Combine that with a video iPod and OSX with front row and all of a sudden Apple is sitting on top of a brand new market. A market that will sell pods and desktop units to the living room. Microsoft wants that market - the 360 is their way of trying to be in place when it finally opens up. Note: yes, I know that all self respecting slashdotters have modded xboxes set up to watch streamed media - but hacked consoles with bit torrent content are not a market.