Microsoft Unleashes iTunes Killer

FROM THE CHICAGO TRIBUNE: "Several online music services and makers of digital music players are expected to announce within days that their products will include a new technology so users can rent a massive amount of songs that can be constantly refreshed."

"The subscription-based service…will offer unlimited access to songs on participating sites for a monthly fee of between $10 and $20."

"Most importantly, unlike earlier versions of song rental services, users will be able to transfer music from their computers onto a portable MP3 player. However, users will not be able to burn the music onto CDs."

"Think of it this way," said Mike Coleman, lead product manager for Redmond, Wash.-based Microsoft. "You get access to over a million songs for less than the cost of buying one CD per month."

The coordinated approach to renting music as opposed to buying songs online could pose the first significant threat to Apple’s position as the runaway market leader in digital music…"

‘Two sites, Napster.com and FYE.com, have already started offering rented music based on Microsoft’s new standard and other sites will announce subscription models soon, including MusicMatch and Microsoft’s MSN Music…"

"Pay your subscription fee that month, and the music will keep playing," said Coleman. "If at the end of the month you don’t feel like paying your subscription, you can just stop, and the music stops playing."

Hardwaremakers, including iRiver, Creative, Virgin and Samsung, are expected "to be on the train for Microsoft’s platform," said Richard Doherty, research director at Seaford, N.Y.-based Envisioneering Group. "Microsoft showed about 100 MP3 players, including cell phones, for Janus" at the Consumer Electronics Show earlier this month.

Apple does not think consumers want a music rental service.

"Our approach has always been that we think people want to own their music rather than rent it," said Greg Joswiak, Apple’s vice president of iPod product marketing. "It’s not a question of technology for us. There’s no one more capable of creating technology."

There may however be sone bugs: "I tested Janus with complaint MP3 players," said Doherty. "To say it’s not as smooth as iTunes is an understatement. With iTunes, you buy a song, and it’s there. I can listen to it anywhere. With Janus, I drag my music to the player, and when it’s time to listen, I was saying, `Where’s the Billy Joel album?’"

"…But Microsoft’s Coleman said the bugs are worked out and the system is ready."

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