Microsoft's Zune music player to ship in time for holidays

Rival to iPod features wireless technology, FM tuner

By Elizabeth Montalbano

September 14, 2006 12:00 PM ET

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IDG News Service - The first Microsoft Corp. Zune products will hit U.S. retailers in time for the busy holiday season, with a 30GB digital media player and an online media marketplace the first to reach consumers, Microsoft said today.

The details of what Microsoft is offering with its Zune product line, which will compete with Apple Computer Inc.'s iPod device and iTunes software and service, appear similar to what Apple already offers, with a couple of exceptions. In addition to allowing users to play music, videos and photos on a screen, the Zune player will include wireless technology and a built-in FM radio tuner. So far, iPods lack either radio tuners or built-in wireless technology.

Zune's wireless technology will allow users to share songs, playlists and photos between Zune devices, Microsoft said. A user can listen to any song received up to three times over three days, after which the listener must buy it from the Zune Marketplace to continue listening.

The Zune Marketplace, like iTunes, allows users to purchase music and video and manage their own media libraries. Users can purchase music tracks individually or buy what is called a "Zune Pass," a subscription service allowing users to download as many songs as they want for a monthly fee.

The Zune device will come in three colors -- black, brown and white. In addition to viewing media on the 3-inch screen, users also can customize the screen with personal photos or themes, Microsoft said.

In another deviation from Apple's plan, Zune devices will come preloaded with content from record labels. Labels that are teaming with Microsoft to provide music for the players include TS, EMI Music’s Astralwerks Records and Virgin Records, Ninja Tune, Playlouderecordings, Quango Music Group, Sub Pop Records and V2/Artemis Records.

Microsoft announced in July that it was developing a music player and service to rival Apple's iPod and iTunes.

If other attempts to unseat the iPod are any indication, Microsoft will have a tough road ahead. Recently, Dell Inc. stopped selling its DJ Ditty music player on its Web site and ended development of its own line of music players.

Still, iPod market share has fallen in the past year, leaving room for rivals in the market. At one point the music player had more than 80% market share by analysts estimates, but the latest reports give the iPod a little over 70% market share.

Microsoft also will offer three Zune accessory packs that will be sold separately and will be available at the same time as the Zune devices.

The Zune Car Pack includes a built-in FM

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