Thinkcorps

So, Microsoft is going to open a music store. This should be a surprise to no one, since it is Microsoft’s own Windows Media Audio DRM that’s powering many of the current downloadable music stores. What does it mean? It means more competition in the PC music space, which is probably good for Apple and bad for everyone else.

Apple’s AAC format makes the files it sells compatible with iTunes and the iPod and little else. If you’ve bought tracks from the Apple Music Store and you own an iPod, you’re a happy camper and you could care less what Microsoft does. If you’ve bought tracks and you don’t own an iPod, then you’re probably planning to. Point is, Apple’s built up a nice defense with the best jukebox player and excellent music management software.

The PC world by contrast is reeling in competing offerings. True, most of your WMA files will transfer to most any device or software, and that’s the problem. No competitive barriers. Microsoft can move in now and just mow the competition down. The only thing they can’t suck in are Apple’s AAC files (and they could if they wanted to).

If this does anything, it should put a fire under Apple’s ass to build cheaper iPods and more mobile versions (flash memory-based).

Then again, I could be wrong. I’m firmly entrenched in the Apple camp and I buy songs from Emusic. What the hell do I know?

Microsoft music store to open next year [CNet]