Microsoft Joins Digital Music Subscription Dance

With Napster effectively shuttered until it launches its long-awaited commercial service this summer, Microsoft finally stepped onto the digital music playing field in a big way Thursday when it reached an agreement to supply technology for a co-branded version of the pending pressplay music subscription service.

Microsoft joins Yahoo as the initial affiliates of pressplay, a joint effort of Sony Music Entertainment and Universal Music Group, a unit of Viveni Universal. The deal brings Microsoft a significant chunk of the music content it has sought, while pressplay gets to build its service around established technology. That should help pressplay--formerly known as Duet--keep pace with MusicNet, the rival service being launched this summer by AOL Time Warner, Berteslmann AG, EMI Recorded Music, and RealNetworks.

Pressplay will offer its service in the Windows media format, with content protected by Windows media digital-rights-management software. In addition to a co-branded pressplay site, the service also will be accessible from Microsoft's MSN Internet access service. Sarah Lefko, product manager for MSN, says pressplay's decision to use Microsoft technology is a major endorsement. "For pressplay to say they'll use Windows media technology is great for us," says Lefko. She says MSN will continue to offer its free MSN Music service, which is essentially customized Internet radio, while the pressplay service will let users request specific songs in exchange for a monthly subscription fee.

The sound quality offered by MSN Music played a big role in pressplay's decision to go with Microsoft technology, says Mike Bebel, pressplay's chief operating officer. "MSN Music is proving to be a relevant music destination," says Bebel. "It made them a very attractive partner." Pressplay has yet to select a supplier of back-end infrastructure for its service, but Bebel says Microsoft remains a contender to supply that technology, as well. He also says that the fact that Microsoft and Yahoo are pressplay's first two affiliates doesn't mean the service is only looking for partners with pervasive brands and massive audiences. "Pressplay is affiliate-agnostic," he says.

Gartner analyst P.J. McNealy says the deal is a big win for Microsoft, and that "it's also a significant indication that pressplay doesn't have the technology in-house." McNealy says Microsoft was desperate for the content needed to launch a subscription service, while pressplay's need for technology wasn't quite so dire. He says, "They had several suitors that were ready and willing to offer the technology."