The marketplace for legal online music services is about to get more crowded with tech behemoth Microsoft entering the fray.
Microsoft plans to introduce a song-downloading service next year that will compete with similar offerings from Apple Computer, Roxio's Napster and others. News of the service was first reported Monday by The Wall Street Journal.
A company spokeswoman confirmed that Microsoft's MSN website will offer such a service, but declined to provide further details.
Industry analysts who have been expecting Microsoft's entry say the software giant could shake up the new, fast-growing business of downloadable tunes. The Redmond, Wash.-based company's dominant Windows operating system gives Microsoft powerful leverage, and its deep pockets could allow it to undercut competitors.
In addition, Microsoft's Windows Media Player -- software that plays music and video files on computers -- already is pervasive, and can be easily adapted to facilitate an online music store from Microsoft.
Apple, which helped jump-start the online music business, said it has sold more than 17 million songs for $1 each since it launched its iTunes Music Store in April.
Since then, a dozen rival offerings have emerged or on the horizon, including services expected from Wal-Mart Stores, Sony, Dell and Amazon.com.
"The current (music) era has all the characteristics of a gold rush," said Phil Leigh, an independent industry analyst with Inside Digital Media.
Microsoft shares fell 35 cents Monday to close at $25.15 on the Nasdaq Stock Market.
