Microsoft targets downloadable music, video markets

Microsoft has announced that it was teaming up with General Instrument and Texas Instruments in a new assault on the leadership position of RealNetworks in the market of downloadable music and video. General Instruments, the leading maker of TV set-top boxes has developed a new set-top box using Microsoft Windows Media Player technology to view videos downloaded from the Internet and broadcast on television. Texas Instruments said it would release a new IC for portable audio devices that would be compatible with Microsoft's technology.

A media revolution is already underway in the way music and video is delivered to consumers. Microsoft wants its data streaming technology and software to be the industry standard used to deliver such content via the Web. The market is expected to grow to $1.1 billion a year by 2003.

"The digital media revolution offers tremendous opportunities for industry innovation, creates new business models, and dramatically improves the computing and entertainment experience,'' said Microsoft Chief Executive Bill Gates said this week in a speech in San Jose, California. Microsoft’s Window Media Player, introduced in April, competes with MP3.com, Liquid Audio, and RealNetworks in the fast-growing market for downloading music.

Microsoft has been lining up support for Windows Media Player from companies including Sony, Time Warner’s Warner Music Group and EMI Group. "As we move towards more networked homes, streaming is going to be a very compelling technology to provide entertainment and even information to home viewers,'' said Kevin Hause, an analyst at International Data Corp.