Microsoft plans to rollout their marketing for the new service slowly, first focusing on current users of MSN and the web portal of the same name. One big obstacle for Microsoft is that their digital music downloads will not be playable on the popular iPod player, a tool that Apple has effectively used to gain their domination in the online music market. The latest figures place Apple’s market share at 70% of all digital downloads in the U.S., against various competitors including Real Networks, Napster, MusicMatch and more. 

Microsoft have adopted a similar pricing model to iTunes. They will offer individual songs for 99 cents and most albums for $9.99. According to Billboard, Microsoft says that they are launching their service with 1 million song catalog.

This week the legal digital music download business passed a new threshold, 3 million downloads.  Apple’s worldwide weekly market for iTunes is well over 3 million, according to the company’s figures. And Nielson SoundScan places total U.S. downloads at just under 80 million so far this year and according to a press release from Apple this week, they have sold over 125 million songs since launching iTunes. 

Due to the growth of the online market, Billboard now includes download chart data on their website and in the UK the first Official Download Chart was launched this week. 

Both Microsoft and Apple will face another competitor in the now crowded market as Wal-Mart rolls out their own digital music download service.  Apple is now looking to have website publishers help them maintain their dominance. This week the Cupertino based company announced their new affiliate program.  According to the press release, the “iTunes® Affiliate Program, making it the first download music store to offer direct links to a la carte singles and albums that generate paid commissions to affiliate websites.” 

The affiliate program just may be another boon for iTunes as online music magazine publishers have long used affiliate programs for CDs, posters and music merchandise as a component of their business plans. Large and small publishers alike often take part in such programs offered from companies like Amazon.com, MusicToday and CD Universe to generate income for their websites and to offer added value to their readers with quick access to online purchases, tour dates, artwork and samples of music. 

The online download wars have just begun. 

more on iTunes
 

Rant or Rave? Your turn, post you comments and thoughts on this news item. But hey keep it clean, we wouldn't want to have to wash your mouth out with Old Spice.

Fan Speak:

 
 

...end