Microsoft mulling new music service

A new music service may be in the works for Microsoft, which has spoken with some major record firms about such a service for its Xbox and Windows Phone platforms. Tech site CNET cited sources with knowledge of the talks as saying Microsoft is eying a delivery service for the gaming console and phone. "Negotiations are still in a preliminary stage and the two sides have yet to drill down into all the specifics, the sources said. Nonetheless, Microsoft has roughly outlined a service that it hopes could launch sometime this year and include streaming music as well as downloads, the sources said," CNET reported. But CNET said it was not clear how the music service will differ from Microsoft's Zune Music Pass, the music service now available to Xbox subscribers. On the other hand, the CNET report quoted its sources as hinting at a team-up with handset makers HTC and Nokia. It said Microsoft declined to comment on the report at this time. "Microsoft does not comment on rumors and speculation," CNET quoted a Microsoft spokesperson as saying. Still, it said the labels may be expected to work hard to make this deal happen. "While Microsoft's past forays into Web music haven't met with much success (the mothballed Zune digital music players and defunct Urge music service), the record companies will welcome the chance to have a higher profile on the Xbox, with its 40 million worldwide Xbox Live subscribers, as well as on any new Windows phones," it said. It added that since Microsoft already operates the Zune Music Pass, the company already possesses music licenses. But it remains unclear if Microsoft must acquire new licenses for its service and that will depend on how Microsoft wants to do with the music. CNET said it is possible Microsoft is considering upgrading its music store to better serve mobile devices. Google did much the same thing with Google Music and its Android operating system, it noted. On the other hand, CNET noted top phone makers have recently moved to augment their music features, such as Taiwan-based HTC, which acquired a majority stake in Dr. Dre's Beats to improve the audio capabilities of its smartphones. In August, CNET reported Research In Motion was planning to add music to its Blackberry Instant Message service. — LBG, GMA News