New Media Group Formed

A new business group will promote Microsoft digital media technologies and PC-based home entertainment scenarios to content owners and standards and industry bodies. The reorganization is part of Microsoft’s ongoing effort to establish the Windows PC as a home entertainment hub-a goal that will require cooperation and partnerships with third parties that currently have a stronger presence in the entertainment business.

Point of Interaction

Formed in July 2004, the Media/Entertainment and Technology Convergence Group is responsible for promoting Microsoft digital media technologies outside the company. It will likely be an important interaction point for the following parties:

Content owners and distributors. The group will promote the advantages of the Windows Media Format and its associated digital rights management (DRM) technology to content owners, such as movie studios and record companies, and distributors, such as online music stores. Microsoft is increasingly promoting Windows Media not only for downloads but also for consumer media. For example, many record companies are now offering “second session” audio CDs containing both a regular audio track that is playable only on a standard CD player and a DRM-protected Windows Media Format track for playback on a PC. Two recent top-selling U.S. albums, To the Five Boroughs by the Beastie Boys and Contraband by Velvet Revolver, have included the technology.