It looks every Online behemoth is trying to doll out freebies to increase their online marketshare. Microsoft for whom situation is intensely grave in Online arena is set to launch a music streaming service at this month-end.
The music streaming service is said to be similar to Spotify which provides free music to its users by listening to a minute of advertising every half hour. Microsoft sources have also revealed their intentions to apply close knit integration with Microsoft’s Xbox gaming console. Currently Xbox users already download movies through their console and play games online.
Microsoft through this service would also be looking at increasing appeal to its new music player-Zune HD. Currently Microsoft has not tied-up with any music company for the service and is still in negotiation phase.
Many companies in music streaming business had to shut operations as the royalty payment far outweighs the advertising revenues from such music portals. The unviable business proposition is also due to higher operating and maintenance cost along with lack of official partnership with music companies.
Indian companies like Guruji too started Music search services in the past and has seen surge in traffic owing to those services. These services although is vulnerable to litigations are a quick resort to gain loyal userbase and traffic.
Microsoft is trying tooth and nail to attract Netizens to use its array of online services like Bing, MSN. This move may outright be termed as ‘desperate’ and may not read too much for its fortune unless they re-invent the strategy currently employed by services like Pandora, last.fm .
The demand for legal streams is going higher by the day and could easily be targeted and made profitable only if a company has rights to legal streams at lowest cost. The success of services like HULU only goes on to iterate the need for legal streaming services. Microsoft could also see some success if it is able to leverage its position to partner with music companies and integrate the services with windows music player and other OS services.
