Music Download Service Planned

Following widespread speculation that it would follow in the steps of Apple’s iTunes Music Store, Microsoft has confirmed that it will launch an online music store in 2004. The service will help Microsoft’s ongoing initiative to promote the Windows PC as a digital media hub. However, it will also complicate MSN’s current drive to cut costs and maintain profitability, and it could hurt partners, such as BuyMusic.com and Roxio (the owner of Napster 2.0), who have already built music stores based on Microsoft’s Windows Media Format.

Important details of the service remain vague. The company has confirmed that MSN is planning to build and launch a downloadable music service in 2004, is looking for a marketing director to create a business plan for the launch, and that the initiative is under the control of Vice President Yusuf Mehdi, who oversees MSN content (as opposed to communications services, such as MSN Messenger, which are overseen by Blake Irving). But the number of songs available, pricing structure (per-download, monthly subscription, or both), and the digital rights management restrictions on downloads (for example, how many times users will be allowed to copy them to portable devices) have not been revealed.