Microsoft is planning to come out with a music and video device to take on Apple’s highly popular iPod and a music service intended to compete with iTunes, according to unsubstantiated rumors.
According to sources, the company has held licensing discussions with music industry and is now demonstrating the capabilities of the device, the sources indicated. The sources also said Robbie Bach, who has assumed the position of the company’s entertainment and devices division following the restructuring late last year, and who had handled the Xbox 360 project, is in charge of the program.
Unlike iTunes or several other music download sites, Microsoft is intending to offer customers a pay-per-download, or a la carte, model, in addition to a subscription service, according to the sources.
So far, the missing element for companies wanting to make iPod killers has been actually finding things that music fans don’t like about the wildly popular devices.
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