Pressplay Takes Up Microsoft's Tune

Microsoft is pairing with two major record labels in a digital music subscription service that will use Windows Media Audio and the MSN Internet service.

Pressplay, a joint venture between Vivendi Universal and Sony Music Entertainment, will use Microsoft's Windows Media Audio (WMA) digital music file format and digital rights management (DRM) technology for its subscription music service, which is scheduled to launch in the third quarter. The companies will also offer a cobranded version of Pressplay that will be available through Microsoft's MSN Music Web site, a free service launched in April.

It's a slap at WMA rival RealNetworks, which promotes its own RealAudio format with its player but also supports MP3 and other formats.

The announcement could add to the rivalry between these competing media formats, says P.J. McNealy, an analyst with GartnerG2, the growth strategy research arm of Gartner.

Pressplay's use of Microsoft's DRM technology may mean that the huge music libraries from Sony and Universal Music Group, which combined represent about 40 percent of the song titles from the major labels, will be available only on the Windows Media Player, which supports the copy-protection technology. It also means that at launch, Pressplay will probably use WMA over RealAudio and MP3 as the format of choice for playing songs, he says.

"This is a huge win for Microsoft," McNealy adds.

Subscriptions Happen

Pressplay, a fee-based music download service, is the music labels' response to the digital music services made popular by Napster, MP3.com, and others. A similar service, MusicNet, was created through a partnership between RealNetworks, EMI Group, AOL Time Warner, and Bertelsmann.

Pressplay's subscription service will let users search the vast catalog of music from Sony and Universal Music and download songs on demand. The company has also said it will offer music from other independent and major music labels through nonexclusive agreements.

The cobranded version with Microsoft will allow MSN Music users to access the Pressplay music catalog and create and share personalized playlists.

Napster itself has said it is shifting to a subscription service as well.