Microsoft to attack Apple on iPod

I'm not sure it's a wise move, but it may redo the history of Windows if they do it right.

Microsoft Corp. is developing a music and video device to compete with Apple's iPod and creating its own music service to rival Apple's iTunes, sources familiar with the plans said Friday.

A Microsoft-branded music service would reflect a digression from an existing strategy to provide software for other such services, just months after the company announced a service called URGE with Viacom Inc.'s MTV Networks.

Most iTunes rivals charge monthly fees to access a catalog of entertainment, but some allow consumers to buy single songs for about $1 each. Microsoft's service will emphasize the pay-per-download, or a la carte, model, sources said. A subscription component will also be offered, according to early accounts of the planned service.

Microsoft joins a crowded field of competitors in the music service sector, including an entertainment device and service expected to be launched by Internet retailer Amazon.com Inc .

Amazon plans to heavily subsidize the cost of the digital device, much like wireless service companies do with the cell phones they sell, one source said. Some of the devices will come preloaded with music.

Gee, it looks bloody there. BTW, I added an Amazon ad banner. Feel free to buy something through my link.:P