Microsoft Updates Zune Subscription to Include Free Music

I’ll be posting this to WinInfo in a bit, but I figured it would be of interest to SuperSite readers as well:

Users of Microsoft's Zune Pass subscription currently pay $15 a month to gain access to millions of music tracks via the Zune Marketplace, but until today, that music became unaccessible if they let their subscriptions run out. Now, however, Microsoft has reached agreements with the world's largest recording companies to allow Zune Pass subscribers to permanently keep 10 songs each month, effectively lowering the cost of the subscription to $5 a month and making it a much better value for consumers.

"The way people consume music has changed," says Microsoft Zune general manager Chris Stephenson. "With the shift to digital from CDs, it is more challenging than ever to offer the right mix of deep content, music discovery and economic value. People want the freedom to listen to whatever they want across millions of songs, combined with the confidence that they can keep their favorite tracks forever."

Microsoft says that EMI Music, Sony BMG, Universal Music and Warner Music Group have all agreed to the terms of the agreement, as have several independent music companies. In addition, virtually all of these companies have all agreed to allow Microsoft to sell their music in MP3 format from the Zune Marketplace, and the software giant reports that over 90 percent of the music it sells will soon be in MP3 format as a result. (The rest is in legacy WMA format.)

Music subscriptions have been around a while but haven't really taken off with consumers because of readily accessible free music online and high prices. According to music industry insiders, market leader Apple has been trying to enter the subscription music market for years, but recording companies have blocked those moves because of Apple's monopolistic pricing practices. Those same companies have instead embraced Apple's competitors, and have also offered them protection-free music, usually in MP3 format, a perk they refuse to provide to Apple.

Despite these moves and the quality of the Zune platform and some of the other competition, Apple still dominates the digital music industry. Microsoft is said to be planning other changes to the Zune in the future as a result, including moving the Zune software to its popular Windows Mobile devices.

BTW. The big question here is, are those 10 free songs per month going to be in WMA format (protected or not) or MP3? Obviously, the latter would be preferable. Anyone know? I’ll try to find out as well, of course.

UPDATE: It appears that you simply get a 10 song credit each month (with no rollover). So you simply buy music and use the credit to pay for them. That means what you buy will be in whatever format is offered. And as Microsoft notes, over 90 percent of the music it offers will soon be in MP3 format (its about 70 percent today) so chances are, you’ll get MP3. (You can tell which it is, by the way: They call out which songs are in MP3 format.) So that’s excellent news. And the Zune Pass subscription, suddenly, is very much worth it.

Discuss this Article 32

Waethorn
on Nov 20, 2008
"With the shift to digital from CDs" Um....CD's are digital too, don'tcha know.
shark47
on Nov 20, 2008
So, instead of paying $9.90 to download 10 songs, you're paying $14.99 per month to get access to all channels, etc. and download 10 songs, which might even play on your iPod? Nice. Don't know how much this will help increase sales, but it's a nice move, nonetheless.
daktmacfan
on Nov 20, 2008
as soon as all of the details are released I think I'm going to go with the Zune pass. The no rollover is kind of stupid, but I guess if your into music your always buying it. Hopefully the 10 free songs are mp3.
Master3
on Nov 20, 2008
It actually makes sense to me. I have tons of downloaded music in which I only liked a few songs. It would be nice to still be able to find new music, but to also be able to keep the ones I really like even after I might cancel the service.
WebGuy3000
on Nov 20, 2008
This is a really nice twist on the subscription model, I think. It's the first thing I've seen that might actually make me consider a subscription plan for music. They're advertising the zune pretty aggressively too - I heard a spot on local FM radio the other day, for the first time ever, I think.
whiplash55
on Nov 20, 2008
Good on Microsoft and the record companies. A decent subscription service with a great player. I'm in for a 16GB. I already have phased out my ipod pretty much with my 8gb Zune, now I can finally uninstall itunes and be done with it,
shark47
on Nov 20, 2008
"They're advertising the zune pretty aggressively too - I heard a spot on local FM radio the other day, for the first time ever, I think. " I saw a Target spot for Zune on TV while watching Family Guy on TBS the other day. Zune Originals is pretty cool. I wonder why they don't advertise that instead.
subzerohitman721
on Nov 20, 2008
Pretty cool to see Microsoft go this route. However, I'm still quite satisfied with the iTunes service.
mikegalos@msn.com
on Nov 20, 2008
shark The problem with advertising the Zune Originals program is that it's only available from the Zune Originals site. That would undercut the retail channel and Microsoft doesn't like to hurt their partners. To get a product to grow in the long run you've got to build the whole ecosystem.
mikegalos@msn.com
on Nov 20, 2008
Oh, and in case nobody noticed, the Zune Originals site has also been updated with new designs.
tayme
on Nov 20, 2008
Very nice! I have been a Zune Pass subscriber for quite some time, and we have 3 Zunes that are linked to it. This adds quite a bit of value to the subscription. Now, before robertsjoe chimes in and starts talking about iTunes ruling and MS sucking...I am not saying that this will be an iPod/iTunes killer. But, it might cause Apple to think about its model. --tayme
mikegalos@msn.com
on Nov 20, 2008
This is a very cool model. Kind of like going to an all-you-can-eat restaurant and having them give you a doggie bag so you can take more of the stuff you really liked home with you.
mikegalos@msn.com
on Nov 20, 2008
If you haven't seen the new "Turn Your PC Into A Music Discovery Machine" commercial, it's viewable at http://www.youtube.com/watch?v=PfDwks6tohM It's interesting to see that the Zune team is putting the emphasis on the discovery features of the new Zune 3 software. What a pleasant change from "Now in puce!"
shark47
on Nov 20, 2008
Looks like they're advertising the software now, which is probably a good thing too. The software is pretty good even if you don't own a Zune.
mikegalos@msn.com
on Nov 20, 2008
shark Well, if you figure that MP3 player installed base is much smaller than the Windows installed base there are a lot of people out there who can use the Zune software even without a device. And, of course, who'd be tempted to buy a device at a later date if they want to take their music mobile.
lotsamystuff
on Nov 20, 2008
@tayme: "I am not saying that this will be an iPod/iTunes killer. But, it might cause Apple to think about its model." I wish the market leader offered a subscription service. I suspect the labels are being intransigent about allowing it, much like the way they've put their feet in cement and refused to allow them to offer DRM-free tracks that are sold virtually everywhere else. Clearly, they're trying to shift consumer preference, and it ain't happening. Foot, meet gun.
truffoo0
on Nov 20, 2008
@shark: I can't buy Zune devices in my country, but I use the Zune software for music and podcasts on my notebook. It is soooo much nicer than iTunes which is currently on the home PC ...
bluvg
on Nov 20, 2008
"legacy WMA format" That bothers me. MP3 format over WMA is like cassette over CD. Why are we taking a step backwards? I totally understand the MP3 is more widely supported, but at one time cassette players were far more common than CD players. I don't care if it's WMA that replaces it, but let's replace MP3 with *something* modern. If nothing else, I'd appreciate the choice of unprotected WMA. Classical music in particular suffers greatly in MP3 format.
lotsamystuff
on Nov 20, 2008
"Classical music in particular suffers greatly in MP3 format." Agreed. That's why you can buy CDs and rip them in a lossless format. There's still something to be said for distribution on shiny plastic discs.
mikegalos@msn.com
on Nov 20, 2008
"Classical music in particular suffers greatly in MP3 format." And there's also the problem that the standard metadata really doesn't have enough fields to properly handle classical. But that's a battle the whole industry needs to address.
bluvg
on Nov 20, 2008
WMA supports lossless... though I doubt lossless format will be offered via the Zune site. Heck, it'd be great to get 24-bit--which is still basically not available today (SACD, etc. are not very popular)--or even multi-track formats. Classical isn't the only genre that suffers, but it probably suffers the most. It's just disappointing to me that MP3 is making further progress towards being the de facto standard when better options exist and are not that difficult to implement. Regarding the metadata for classical, that's a good point. I wonder if there is a way to standardize that, because the data is so broad. I would think an extensible metadata model would be easy to implement, though, if it isn't already (isn't it already in WMA/WMV?).
johnbaxter
on Nov 20, 2008
This is the first time the phrase "subscription music" has made sense to me for my (limited) needs. Mike, the industry has addressed some of the problems with MP3, with the result being AAC first standardized in 1997. Although AAC is most widely known because of Apple's use (of an extended version providing for the hated DRM), neither "A" stands for Apple. It is "Advanced Audio Codec". Whiplash, deleting iTunes completely is a lot harder than it should be. I think I've finally managed it, but one of the components stuck around for a very long time--I did enjoy watching the uninstaller's progress bar fill nicely from left to right, get all the way full, then "unfill" from right to left. Thanks, Apple. Plays on Zune (not initially, but for some time now). Plays on Windows 7 (which should help it a lot). As to whether it solves the classical metadata problem you point out, I don't know. Given how badly Apple treats classical at the iTunes store, one has to wonder.
mikegalos@msn.com
on Nov 20, 2008
johnbaxter Actually, I was really just bringing up the metadata problem. I know that both Zune and iTunes do a bad job on classical fields but, from what I've been able to research, that's largely because the standard metadata formats do a bad job so they're stuck shoehorning what data they can into barely compatible fields. The problem with MP3 vs AAC vs WMA vs [insert other format here] is that MP3 is now the universal standard and all the attempts to get something better accepted haven't been met with a lot of resistance. Apple's tying their AAC implementation so generally to their DRM implementation has probably killed AAC at least in name since the general perception is that AAC = Apple DRM. That's wrong, of course, but changing the perception might be impossible at this point and it may be simpler to just change the name of "real" AAC so the bad impression is gone. Maybe Apple could launch a non-DRM "AAC Mojave"?
mikegalos@msn.com
on Nov 20, 2008
(oops) That line should have been: The problem with MP3 vs AAC vs WMA vs [insert other format here] is that MP3 is now the universal standard and all the attempts to get something better accepted have been met with a lot of resistance.
johnpapola
on Nov 20, 2008
This is pretty awesome. I wish iTunes would do this.
Dipsh t Admin
on Nov 20, 2008
That's a pretty impressive deal right there. It gives you the best of both worlds.
joe-dokes
on Nov 20, 2008
The failure of AAC outside of Apple has little to do with Apple's DRM and everything to do with the way AAC is licensed. Simply put the license for AAC is far more expensive than it is for WMA. MS competed mostly on price and since it was ridiculously cheap to include a wma decoder most .mp3 players have done so. Since Apple never licensed the right to the DRM version of AAC, few .mp3 manufacturers bothered to license the non DRM AAC technology; because it would add about a dollar to the wholesale price of an .mp3 player. In the long run I would argue this hurt non-Apple .mp3 manufactures since the default encoding in iTunes is AAC, thus even though most have actually bought few songs through iTunes, the vast majority of their music collection is encoded in AAC, and is therefore incompatible with the vast majority of .mp3 players. MS and Sony have begun to include AAC decoding in their players making them far more compatible. Will AAC become as ubiquitous as .mp3? Well, as long as Manufactures are unwilling to pay about a dollar per license, I would say the answer is yes. As far as the ability to keep ten songs a month, I would argue that this actually makes the rental model a lot more attractive. I've never been a fan of the rental model, (Subscription is in my view an entirely inaccurate term.) I've felt very strongly that it lacked sufficient value to be a good deal or even an acceptable deal for consumer. Being able to keep ten songs a month adds far more value to the equation. Regards Joe Dokes
DRWAM
on Nov 20, 2008
If you do the math, you pay for 10 songs each month at $1/song, and rent the subscription for $5/month, unless you forget to buy them. Almost like book of the month.
mikegalos@msn.com
on Nov 20, 2008
DRWAM Now what they need to add is a "wishlist" for songs I want to buy next month when I have credits again...
chuckb84
on Nov 20, 2008
I've never liked subscription music, and based on the numbers, I'm not alone, because subscription music has utterly failed in the marketplace. I would submit that this is not "subscription". "Rent to own" might be a better appellation. You rent a bunch of music and then own the ones you like. It amounts to a pre-purchase of roughly an album a month. Call it what you like, this may be a viable business model. We'll see how consumers react. The biggest problem---and I don't mean this as a Microsoft critique, just a statement of reality---is that this business model could fail because Microsoft sells so few MP3 players. Still an interesting idea.
subzerohitman721
on Nov 20, 2008
Well, I guess we should be keeping an eye on MT9 as the next digital audio format. Granted a whole lot of music would have to be recorded in this new format. We'll see when MPEG group meets in 2009.
robertsjoe
on Nov 20, 2008
Thanks for the post. All 10 Zune owners are happy to hear it.

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