Microsoft launching free music streaming service to rival Spotify
Spotify, Pandora, and Last.fm are leading the way in offering people the chance to stream music, either to their computer or in some cases, via an Internet-connected mobile device. Now Microsoft wants in and has informally announced its intentions to launch a free music streaming service by the end of this month.
There is no doubt in my mind that free streaming music services are the future. They offer consumers a chance to listen to music without having to resort to illegal downloading, the artists and labels get paid, and people are likely to legally buy some of the new music they hear, thus further increasing revenues going to the right people.
Spotify has completely changed how I consume music. Having built playlists since I first started using the service earlier this year, I can now easily find and listen to a range of my favorite tunes. Or I can listen to new music, decide on the bands I like and dislike, and then buy their music in physical formats for keeps.
Now, obviously after seeing the buzz surrounding Spotify and the number of people using the service on a daily basis, Microsoft has decided to get involved. Peter Bale, executive producer of MSN, told The Telegraph newspaper:
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.
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.
I’m assuming Microsoft will include a free option supported by advertising revenues, even if its first choice is a premium paid business model. With Spotify being available free (as well as the paid version) it would be commercial suicide for Microsoft not to include such as option. Why would anyone switch from Spotify to a service similar in every way except for requiring a subscription?
Bale wouldn’t reveal any more concrete details but he hinted that the music streaming service would be somehow tied into the Xbox 360 games console. Microsoft is also still pursuing its Zune music player, and a portable music streaming service powered by Microsoft could give the device a much-needed boost.
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