Microsoft has started offering downloadable films and TV shows for devices using its mobile platform. At least 20 content firms have signed up to provide content, ranging from MSNBC to Napster to MTV to IFilm. Aside from the fact that Microsoft is entering content distribution rather than sticking to software (a move I put down to the company wanting to increase content use to promote its software and thinking no-one else is going to do very much about it) there are two interesting points about this developement.
First, the system is very like Podcasting. Users can choose which content they want to receive and it will be automatically sent to their PC, where they can transfer it to a mobile device. Obviously, this leaves carriers out in the cold, but I don’t think there’s much they can do against Microsoft.
Second, the price of US$19.95 per year is incredibly small, indicating that Microsoft is relying on a huge take-up of the service to make a profit. As for the content providers, I suspect most of them are providing content they’ve already developed (such as Fox Sports repackaging TV content) so any extra cash from this is just a bonus.
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