London — In an attempt to rival the likes of Spotify and We7, Microsoft is planning to introduce a new music streaming service by the end of this month. According to an MSN executive, the service would be ready by the end of July, and will allow users to stream music for free and also download to own.
MSN has earlier launched the music service business, but after sometime pulled it off, but this time it is ready to try again, at least first in the United Kingdom., with no word yet on a U.S. Launch.
“In the coming months, MSN is planning to launch a new music-streaming service in beta via its Music channel in the U.K.,” a Microsoft representative quoted as saying by the Telegraph Newspaper. “At this stage we would not be confirming the details behind this but more information will be available soon and will be communicated in due course.”
Peter Bale, executive producer of MSN, Microsoft’s news and entertainment portal, told the paper: “Music is an important area for Microsoft. We are looking at launching a music streaming service imminently. It will be a similar principle to Spotify but we are still examining how the business model will work."
Music has also been a confusing area for Microsoft. The company already has a music-streaming product in the U.K. Also Microsoft introduced an MSN Music download business in 2004, but then killed the service two years later and started promoting RealNetworks’ Rhapsody as part of a settlement with that company. It then launched the Urge service in partnership with MTV before shifting its energy to the Zune service and player.
Of late, Zune has been the major component in its music effort. The Zune lineup is getting updated this fall and its software and brand are coming to the download section of the Xbox, so even if it is a separate service it seems a little nutty not to link them all somehow.
Bale added: “We are looking at how other similar businesses have structured their business models and trying to figure out what will work best for both consumer and Mircosoft.”
Spotify users can play music for free in return for a minute of advertising every half hour but for £9.99 a month, the ads will be turned off. It is believed that Microsoft’s offering too will be ad-supported as well as having a paid-for premium service.
Zune also offers a $15 per month “all you can eat” music subscription service, with an attached social network. What it does not offer yet is a free streaming service.
Bale did not offer any specific details about Microsoft’s Spotify slayer, but the report speculates that it will also offer ad-supported free streaming, as well as a premium subscription service.
Microsoft is also believed to be looking at a download partner for the service, akin to how 7digital offers downloads from within Spotify, and could even offer it through Xbox LIVE.
The service is expected to strengthen the appeal of Zune, Microsoft’s music player. Bale said the knowledge of the music industry the company had gleaned via Zune and also the player’s technology, had all been incorporated into the service’s development process. Microsoft recently announced it would launch a high definition version of its music player, but it will only be available in the United States.
The service would be operated and owned by Microsoft, while being promoted through MSN and other parts of the Microsoft network.
However, no download partner has been signed yet but Microsoft is in discussions with several companies.