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MusicNet to offer files in Microsoft format

June 12, 2003 10:01 IST

In the latest deal in the rapidly-expanding online music business, MusicNet said on Thursday it will offer more than 350,000 songs to subscribers in Microsoft Corp's Windows Media format.

Since Apple Computer Inc launched its iTunes Music Store in late April, and proved its potential by selling more than 2 million downloads at 99 cents each, major online players like AOL, MSN and Amazon.com have said they were more actively exploring their own online music services.

MusicNet's current distribution is through the AOL service of AOL Time Warner Inc. Late last month, AOL and Microsoft settled a long-running legal dispute by agreeing in part to closer collaboration on the development of online digital media.

A MusicNet spokeswoman said the conversion of the company's music offerings into the Windows Media format has been an ongoing initiative and predated the AOL/Microsoft settlement.

MusicNet, with more than 100,000 subscribers to its service, got a new round of funding last month from its major shareholders, including Microsoft competitor RealNetworks Inc.

Though an investor, RealNetworks is phasing out the distribution of MusicNet in favor of Rhapsody, the online music platform it picked up when it acquired Listen.com earlier this year.

MusicNet's main rival, Pressplay, was acquired in May by digital media company Roxio Inc, which plans to use it to revive a legal form of the Napster online music service.
Source: REUTERS
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