Will Microsoft Sing ?

It is going to be a multi billion dollar question, witnessing the success story of Apple's iPod and iTunes. Now Microsoft is speculated to launch its own digital music player around Christmas this year. It will also reportedly carry wireless technology enabling users to download music without linking to a computer. In the past Microsoft has worked with iRiver to create Clix where it provided the underlying software. Microsoft has already introduced other initiatives to compete with Apple's iTunes music service. In May it launched along with MTV Networks the Urge music store as part of the Windows Media Player 11 public beta. The Urge store allows users to purchase songs for $1 and albums for $10, as well as to buy a $15 monthly subscription. The service is not compatible with Apple Macs or iPods. There have been several signs that the world's largest software maker might be planning a music device. The company recently jumped into cell phones with Windows Mobile, and more recently it announced that it was collaborating with France's Bouygues Telecom to launch a new mobile music service in 2007.

If Microsoft plunges ahead with this new approach, the software maker will be in a tricky situation. Because of Apple's leadership position (74% market share), Microsoft needs to drop its current strategy of embracing Apple's solo approach, where songs purchased at Apple's iTunes online music store will only work on its iPods. Songs purchased from Microsoft's new, improved online music service will also likely play on devices made by longtime hardware partners such as Samsung, Creative Technologies, and iRiver.

Better Strategy for Microsoft would be to go for seamless compatibility between player and its hit product Xbox gaming console, giving the flexibility to play stripped down versions of games on its player but in the first version chances are bleak as Microsoft might not be ready with the games for its digital ecosystem. Microsoft's IPTV would be the next one to be integrated to prevent Apple's entry into homes with digital platform for living rooms. However this strategy would be a threat to MS's partners like iRiver and MTV in the digital music space, Microsoft needs to very well execute the plan to rerun the success story of Apple as owning everything doesn't guarantee the success as evident from Sony's fate. Sony owned content, devices, software and an online store and it hasn't enjoyed nearly the success Apple has. What is going to happen with Microsoft will be interesting in its own terms so till then keep your fingers crossed.