Microsoft  and Viacom's MTV will join forces to develop a digital-music service that relies on the next version of Windows Media Player.
The service, to be called Urge, will include downloads of MTV shows, original programming, online radio programs, and over two million songs.
Urge, due to launch in 2006, will be integrated directly into the new version of Microsoft's media player. Additional details on the service will be discussed in January at the International Consumer Electronics Show in Las Vegas.
Music Mavens
In leaping into the online-music space, Microsoft and MTV will go head to head with Apple's popular iTunes service, which should make for a lively battle for market share.
Although iTunes is very popular among consumers, Microsoft will have several advantages as a result of the deal with MTV.
Mainly, its technology already is on the majority of home and business computers, and when the Windows Media Player arrives in its next iteration, the inclusion of Urge means users will not have to download additional software.
Also, MTV will give the service significant exposure through its television properties. Urge is due to be promoted on the MTV, VH1, and CMT channels, which on average collectively reach more than 165 million viewers.
Still To Play
Although there have been several high-profile, digital-music partnerships like that seen with MTV and Microsoft, and continued fascination over the iPod's success, digital music still is a small part of the total music market, analysts have noted.
Even with strong interest from recording labels and technology firms, much of the digital-music market is being led by ringtone revenue, which is sizable.
"The ringtone market will continue to grow at an unbelievable rate," said IDC analyst Lewis Ward. "That will attract more and more consumers, and drive innovation in that area."
It is likely that the popularity of customized ringtones could draw more consumers to music services as well, Ward added.
MTV executives have acknowledged that the market is not as robust as it could be, but noted that they are confident it will grow quickly, and that MTV is entering the market now to get in on the ground floor.
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