Trade Review: Week Eight (1/2)

Microsoft Offers Free Music Streaming, With Limitations

Joining the music streaming bandwagon, Microsoft is preparing to release a multiplatform integrated music streaming service call Xbox Music. Compatible and synched to a user’s Xbox, Microsoft Phone 8 and Windows 8, Xbox Music plans to elevate and personalize Microsoft products and the brand itself by competing with music streaming giants like Pandora, Deezer and Spotify. Already having a massive consumer population, Microsoft will have no problems in attracting users to their new music streaming service. While Apple has the largest musical library, Microsoft will once again have to compete with its biggest rival (Apple) in providing the better or equally large musical library. However, Microsoft is one step ahead of Apple in the music streaming sector, for Apple has only been rumored to be in the works of developing a music streaming software. Microsoft’s Xbox Music will have many features like ad-free subscriptions, multiplatform synchronization, personalizing playlists, scan-and-match to suggest new music based on your music library.

The major catch to Microsoft’s new service is that after six months of initial usage, the consumer will be limited in how many hours of music they are allowed to listen to per month. This completely counter-acts the unlimited aspect that most music streaming services provide and use as their main selling point. For Microsoft, their selling point is the fact that the music streaming works on 3 platforms (console, PC, and mobile) and can only work on Microsoft platforms alone that have been on the market since 2011: “older software won’t have access to the new service at the outset, nor will people with Apple’s mobile devices or those running Google Android operating system” (Sherr). Exclusivity of only contemporary Microsoft products is what Microsoft hopes will drive business and the fact that limitations are also set will encourage value in the program and of each song. By only allowing Xbox Music to be compatible with contemporary Microsoft products could also increase sales of products by consumers upgrading their devices; however this could also discourage consumers using Xbox Music because most do not want to purchase new systems to listen to limited music.