Microsoft Planning Music Service

Microsoft eyes music service in 2004

NEW YORK (Reuters) - Software company Microsoft Corp. plans to roll out a song-downloading service next year that will rival offerings from Apple Computer and Roxio Inc.’s Napster.

A spokeswoman for the company confirmed to the Wall Street Journal, in an article published Monday, that Microsoft’s MSN Web site will have such a service in 2004, but she declined to provide more detail.

Citing a person familiar with the matter, the newspaper said Microsoft has been in close contact with major music companies to discuss plans for a service.

The story noted that Microsoft might be able to undercut the per-song price of competitors, and that its dominant Windows operating system gives the company a strong position from which to expand into new markets.