Microsoft May Cut Zune Streaming Music Price, Executive Says

Posted by sumeethevans on May 28 2010, 11:08 AM. Posted in Zune.

Microsoft, the world’s largest software maker, may cut the monthly fee it charges for streaming music on its Zune portable player, senior product manager Terry Farrell said in an interview.

Zune Pass, which features unlimited music streaming and 10 song downloads a month, now costs $14.99. Farrell didn’t say by how much Microsoft may cut the service’s price.

“It’s definitely a challenging business,” Farrell said, referring to competition in online music.

Microsoft is contending with rivals that offer music at little or no charge, while striving to erode Apple’s lead in the market for digital music players and downloadable songs. RealNetworks Inc.’s Rhapsody service in April slashed the monthly price of a premium music service to $10 from $14.99.

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