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Microsoft, OD2 launch Europe online music service
London, Aug 14: Microsoft Corp. announced on Thursday a pact with Europe`s biggest digital music outfit, OD2, to form the continent`s first major a la carte online download service.
London, Aug 14: Microsoft Corp. announced on Thursday a pact with Europe's biggest digital music outfit, OD2, to form the continent's first major a la carte online download service.
The alliance comes a week after the EU made fresh demands on the software giant to stop abusing its market dominance to distribute software, singling out the popular Windows Media Player that allows computer users to play songs and view films.
Beginning today, music fans with Microsoft's Windows Media Player version 9 can purchase individual music tracks for 0.99 euros or 75 pence from OD2's library of over 200,000 songs, representing a 25 percent discount from most other European subscription services, the companies said.
The move marks the first time European consumers can purchase song downloads off the Internet for under one euro ($1.13), and without requiring a monthly subscription, bringing the fee in line with the popular Apple Computer iTunes service, which is not yet available in Europe.
Microsoft has been a longtime technology partner of Britain's OD2, the only company in Europe to have secured licensing deals with each of the five major recording labels -- Sony Music, BMG, Warner Music, Universal Music and EMI.
OD2 makes its catalogue, which ranges from ColdPlay to Elvis, available to more than a dozen European retailers and Internet companies including HMV, Tiscali and Microsoft's MSN.
Only MSN and Tiscali, for now, are participants in the discounted, a la carte service. Windows Media 9 users can access the new digital services by clicking on a link on the player.
It launches with an English, French and German language versions. Spanish and Italian versions will launch in the ensuing months. More OD2 partners are expected to join the pricing scheme shortly, OD2 Chief Executive Charles Grimsdale said.
OD2 said it expects the discounted pay-as-you-go scheme to spur consumer usage. Subscription music services have found it difficult to compete against free music-swapping services such as Kazaa and iMesh, which are blamed for contributing to declining CD sales.
Only since Apple launched iTunes in the spring in the United States under a straightforward 99-cent-per-download pricing scheme did music fans begin paying for downloads. Until now, no such pricing model exists for European services.
Mulligan added the pricing will probably continue to fall in Europe when rivals such as Apple's iTunes enter the market.
Erin Cullen, product manager for Microsoft's Windows digital media division, said the new alliance is not an attempt by Microsoft to close off competitors from Europe's digital music market against any particular company.
OD2's Grimsdale though said he viewed iTunes as a potential competitor and that the two firms would not be working together should Apple enter the market here by early next year as some industry observers expect. Bureau Report
Beginning today, music fans with Microsoft's Windows Media Player version 9 can purchase individual music tracks for 0.99 euros or 75 pence from OD2's library of over 200,000 songs, representing a 25 percent discount from most other European subscription services, the companies said.
The move marks the first time European consumers can purchase song downloads off the Internet for under one euro ($1.13), and without requiring a monthly subscription, bringing the fee in line with the popular Apple Computer iTunes service, which is not yet available in Europe.
Microsoft has been a longtime technology partner of Britain's OD2, the only company in Europe to have secured licensing deals with each of the five major recording labels -- Sony Music, BMG, Warner Music, Universal Music and EMI.
OD2 makes its catalogue, which ranges from ColdPlay to Elvis, available to more than a dozen European retailers and Internet companies including HMV, Tiscali and Microsoft's MSN.
Only MSN and Tiscali, for now, are participants in the discounted, a la carte service. Windows Media 9 users can access the new digital services by clicking on a link on the player.
It launches with an English, French and German language versions. Spanish and Italian versions will launch in the ensuing months. More OD2 partners are expected to join the pricing scheme shortly, OD2 Chief Executive Charles Grimsdale said.
OD2 said it expects the discounted pay-as-you-go scheme to spur consumer usage. Subscription music services have found it difficult to compete against free music-swapping services such as Kazaa and iMesh, which are blamed for contributing to declining CD sales.
Only since Apple launched iTunes in the spring in the United States under a straightforward 99-cent-per-download pricing scheme did music fans begin paying for downloads. Until now, no such pricing model exists for European services.
Mulligan added the pricing will probably continue to fall in Europe when rivals such as Apple's iTunes enter the market.
Erin Cullen, product manager for Microsoft's Windows digital media division, said the new alliance is not an attempt by Microsoft to close off competitors from Europe's digital music market against any particular company.
OD2's Grimsdale though said he viewed iTunes as a potential competitor and that the two firms would not be working together should Apple enter the market here by early next year as some industry observers expect. Bureau Report