James Delahunty
15 Dec 2005 8:35
Redmond software giant Microsoft is teaming up with Viacom Inc.'s MTVM to launch a music download service. The new service, URGE, will roll out next year and will incorporate Microsoft's Windows Media Player. It will offer a catalog of 2 million tracks to download individually for a set price per track, or on a subscription basis like Napster's subscription service, or Real Networks' Rhapsody.
After the news about the new Microsoft / MTV venture surfaced, RealNetworks' shares fell 4%. Obviously Real will now be competing with URGE for the same customers. Real's Rhapsody service is currently being advertised through Microsoft's MSN sites (as part of the pairs anti-trust settlement). When the details about the anti-trust settlement emerged, and details about Real's new web-based Rhapsody emerged, the media painted it as a sort of strong co-operation between Microsoft and Real.
Obviously Microsoft has other plans. "We believe Microsoft continues to be very interested in providing a service ultimately competitive with Rhapsody and is likely to learn 'best practices' from Rhapsody off of its partnership on MSN," Oppenheimer analyst Sasa Zorovic wrote in a research note.
Source:
BusinessWeek