According to a Reuters report on Friday, Microsoft is indeed developing a music and video device to compete with Apple's iPod as well as creating a music store to rival iTunes. The report cites information from sources familiar with the plans. According to these sources, Microsoft has held licensing discussions with major record labels and is already demonstrating the entertainment device.
Microsoft's content protection software is already in use on several music download sites and it is the key to offering subscription based music services. iTunes had stayed on top however, despite giants such as Yahoo backing the monthly subscription fee option. The failure so far of subscription services can be credited to consumers' reluctance to "rent" music.
Source:
Reuters











