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Microsoft Changes Zune Subscription Model

Sections: Portable Media Players

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Microsoft announced late last week that it has reached a deal with the four major record labels, as well as some independent companies, to change the model under which its Zune Pass service works.

Under the new system, subscribers will be allowed to choose ten tracks per month to keep, in addition to the virtually unlimited amount of tracks they can listen to for the monthly fee of $14.99. In addition, users can keep the tracks they downloaded even if their subscription lapses.

“The way people consume music has changed. With the shift to digital from CDs, it is more challenging than ever to offer the right mix of deep content, music discovery and economic value,” Chris Stephenson, general manager of global marketing for Zune at Microsoft, said as part of the announcement. “People want the freedom to listen to whatever they want across millions of songs, combined with the confidence that they can keep their favorite tracks forever.”

Under the deal, songs under Sony Music Group and Universal Music Group will be available in DRM-free MP3 format, while music from EMI Music, Warner Music Group, and the indie labels will come with DRM.

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