Microsoft to muscle its way into music service

According to reports, Microsoft is all set to compete with Apple's iPod and iTunes.

Microsoft is all set to take a swipe at Apple's iPod and iTunes service according to media reports. It seems Microsoft has been in licensing talks with the music industry to create its own music service that will focus on pay-per-song model (costing $1 per song) but will also offer a subscription service. It is not clear when Microsoft will launch the product.

The device will play both video and audio. According to Reuters, people who have seen the music player say that the video quality is better than that of the video iPod and iTunes. Robbie Bach, who previously headed Microsoft's Xbox video game business, is heading this project. 

The competition seems to be heating in the music service business. Apart from Microsoft, Amazon.com also plans to launch a Web-based music retail store. Although, Microsoft has been vehemently denying rumours of launching an iPod killer, Gates did not really deny the rumour at a recent press conference.

Microsoft has a great advantage though. It has an operating system with which to package multimedia features and push its music service. It can also use its massive PC user base to push its music product.

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