Tuesday, February 08, 2005

While the music subscription approach has grown in recent years, far more music fans have opted to buy songs by the track, a business model popularized by Apple Computer's iTunes Music Store and its hugely successful iPod portable player.

But the release late last year of new copy-protection software from Microsoft may begin to change that. The software frees subscribers to move their rented tracks from their personal computers to certain portable music players.

The system works by essentially putting a timer on the tracks loaded on the player. Every time the user connects the player to the PC and the music service, the player automatically checks whether the user's subscription is still in effect. Songs stop playing if the subscription has lapsed. If the user doesn't regularly sync up the player with the service, the songs go dead as well.

''This is potentially the first serious challenge that the iPod is going to face,'' said Phil Leigh, president of Tampa-based Inside Digital Media. ``What these devices are going to be able to do is attack iPod where it's weak.''

Several online music purveyors see portability as selling point that can lure consumers to their subscription services.

Forrester Research projects music subscription revenues will more than double this year to $240 million.