Microsoft Said To Plan Xbox Music Rivaling Apple, Microsoft Corp. (MSFT) plans an expansive Xbox music service joining Spotify-style streaming with download and online-storage functions similar to Apple Inc. (AAPL)’s iTunes, several people with knowledge of the situation said.The Redmond, Washington-based software maker is in talks with major record companies for the needed rights, and plans to begin service later this year, said the people, who asked not to be identified because the discussions aren’t complete.
By combining the best features of competing services, Microsoft seeks to build a digital product that lets customers consume music any way they like. The maker of the Xbox console is building the new music business after its unsuccessful effort with the Zune service, which will close and move customers to Xbox Music, the company said on its website.
Microsoft is negotiating with Vivendi SA (VIV)’s Universal Music Group, billionaire Len Blavatnik’s Warner Music Group, Sony Corp. (6758)’s music division, all based in New York, and Citigroup’s London-based EMI, the people said.All four music companies declined to comment in e-mails. Jose Pinero, a Microsoft spokesman, also wouldn’t comment.
