Microsoft releases details about Zune

Microsoft's Zune Marketplace music service, designed to compete with Apple Computer Inc.'s iTunes store, will let users buy songs individually or listen to unlimited tracks for a flat subscription fee.

Analyst Phil Leigh with Inside Digital Media said he thinks Microsoft may be able to gain an edge by offering a subscription service. Other companies offer such unlimited plans, but Apple doesn't.

Still, Leigh thinks Microsoft will be hindered by having just one high-end device available at the beginning, while Apple has a broad product line to appeal to a wide variety of users.

"The way to be competitive here would be come in with some choices, instead of just one product," he said.

Allard said the company does eventually plan to offer more devices and features. "We think of the Zune platform and the movement here to be more than the device," he said.

Microsoft has said that Zune is key to staying competitive, but will cost millions of dollars and not pay off immediately.

Other hardware manufacturers, including Creative Technology Ltd. and Samsung Electronics Co., already offer portable media players using Microsoft's software, although they've had limited success against Apple.

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