Zune Marketplace may replace MSN Music - Mp4 Converter

Once its Zune media player goes on sale November 14, Microsoft plans to shut down music sales through its once-flagship MSN Music service.

Media reports and multiple sources indicate Microsoft plans to stop selling music through its MSN Music service once its Zune handheld media player goes on sale November 14. Instead of enabling users to purchase songs, MSN Music will point users towards Microsoft's new Zune Marketplace or to RealNetwork's Rhapsody music service, which has been granted prominence on MSN Music as a result of the companies' year-ago antitrust settlement.

The move might be seen as one indication of the importance Microsoft places on its new Zune media players and music marketing strategy; on the other hand, it might also be seen as Microsoft throwing in the towel on an online music service effort which was never tremendously successful and now muddies the company's online music service offerings. Microsoft launched MSN Music in 2004 as a way to compete with Apple's iTunes Music Store, but the service never developed significant market share, due in part to the market momentum of Apple's iPod/iTunes integrated service but also the morass of product offerings and music services competing in the non-iPod arena: Napster, Yahoo Music, Rhapsody, Sony Connect, and eMusic (which, by selling unencumbered MP3 files, has managed to pull up to a distant number two behind iTunes). With the the launch of the Zune Marketplace, Microsoft would have had three online music service offerings-Zune Marketplace, MSN Music, and its MTV-branded Urge-which could, at best, be seen as confusing customers and undermining Microsoft's new emphasis on the Zune media player.

Microsoft plans to keep MSN Music online as a central hub for music and entertainment news and concert information; the company also plans to keep its MSN Music Present online concert performance series going.