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Article

Title: Zune Eases Sharing to Close iPod Gap

Author: Wingfield, Nick Article Type: Product Analysis
Source: Wall Street Journal, v251 n106 pB6(1) Publication Date: May 6, 2008
  ISSN: 0193-2241
URL of Publication: http://www.wsj.com

Microsoft Corp. is offering users of its Zune music device a way to legally share their music with others in a bid to better compete with Apple Inc.'s dominant iPod. The company will also sell downloads of television shows with 800 episodes, each available for a small price. Apple's iTunes, in contrast, has thousands of episodes from 600 programs available for purchase. Currently Apple has 71 percent of the portable music market, compared to 4 percent for Microsoft. Microsoft's latest effort to differentiate its players is an attempt to add a 'social element' by allowing friends to share songs. On the Zune website, users will be able to see and download their friends' nine most recently played songs and nine songs flagged as favorites by their friends. Playing this shared music will require users to pay a monthly fee for a subscription for the Zune Pass Service, which comes with unlimited access to a library of millions of songs. Analysts, however, are skeptical that Microsoft's efforts will help it catch up to Apple, given the massive popularity of the iPod.

Companies:
Apple Computer Inc Apple Inc
Microsoft Corp

Products:
iPod iTunes
Zune Pass Zune

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