Microsoft Dances Closer to the Set-Top With Xbox Music

Microsoft is taking another stab at the digital music industry with the Tuesday launch of Xbox Music, a streaming music service that will be an update to the Xbox. It will also be released as a built-in feature on Windows 8 PCs and tablets later this month.

Xbox Music lets users listen to music in whatever way -- and on whatever device -- they choose.

Users will be able to stream the service's 30 million tracks for free in an ad-supported version or purchase it at the now ubiquitous price point of 99 US cents per song.

There's also an option to pay $9.99 per month for unlimited cloud-based streaming of music purchases and playlists to any device.

A Microsoft spokesperson was not immediately available to provide further details.

Xbox as Set-Top Box

Xbox Music is clearly different from Zune in some important respects -- and it can be expected to change the Xbox dynamic, Rob Enderle of the Enderle Group told TechNewsWorld.
The Xbox is being positioned as more of a set-top box going forward, he said. Microsoft carved out its identity at first with games and then movies -- and now it is incorporating music into the mix."Music has proven relatively easy, and Microsoft leads with games; it is video that remains the bridge too far and both firms are struggling here," said Enderle.

Digital Music Nation

Microsoft has another factor in its favor now with Xbox Music. Digital music has become mainstream, and consumers expect easy access and a smooth experience, said Patrick Reynolds, EVP of marketing for Triton Digital.
"There has never been more interest in or listening to online music," he told TechNewsWorld. The market has become a very big pool, and "there's room for more than one player."

Table Stakes

In fact, a good music service has become table stakes for both Apple and Microsoft, Enderle said. It will be a critical issue for Google as well, if it is not already.
Google still relies mostly on third parties, he noted. However, "their music service, while not as well known, is actually rather good, being a bit more consumer-focused and a bit less record-label friendly."