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MTV-Microsoft URGE music service not targeting iPod, iTunes users; Real CEO PlayedForSure?
Tuesday, December 13, 2005 - 04:21 PM EST

Today, MTV Networks and Microsoft Corp. today announced they have collaborated on the design and development of MTV Networks' new digital music service called "URGE." Set to debut domestically in 2006, URGE will be integrated into a forthcoming version of Microsoft Windows Media Player, according to Microsoft and MTV.

"MTV Networks declined to give details on URGE's pricing, but users can expect to pay different tiers for a la carte downloads, subscriptions and for moving rented tracks to a portable music player, said Jason Hirschhorn, the company's chief digital officer," Alex Veiga reports for The Associated Press. "Similar services typically charge around 99 cents for an individual track and $5 to $15 a month or more for a basic subscription package."

"The current version of Microsoft's Media Player has built-in links to several music services, including MusicNow and Napster. A few months ago, Microsoft broke off talks with record labels to license music for a new online subscription service of its own. It did not explain the move," Veiga reports. "Microsoft already sells song downloads on its MSN Music Internet site. Under the terms of MTV Networks' agreement with Microsoft, URGE will stand out from other services, Hirschhorn said. 'We will be the preferred service,' he said, declining to elaborate."

Veiga reports, "URGE will not be compatible with Apple Computer Inc.'s Macintosh computers or its popular iPod digital music player, a challenge the MTV Networks service will have to overcome, said Michael Gartenberg, vice president and research director for Jupiter Research in New York. 'The biggest paradox is the people who are most likely interested in an MTV-branded music experience are also probably the demographic that has the highest interest in the iPod,' Gartenberg said. IPods represent around 75 percent of the digital player market, and Apple's iTunes Music Store accounts for around 80 percent of the licensed music download market, said Phil Leigh, a digital music analyst with Inside Digital Media."

Veiga reports, "The MTV brand could help spark interest in non-iPod players, Leigh said. Hirschhorn said URGE's focus will not be iPod users. 'We think the iPod has done a great job. Our aim is not to switch people from iTunes and the iPod,' he said. 'We need to concentrate on where there's going to be a bigger market.' Still, the network will have to do a better job than other music services to sell consumers on the upside of subscription services. 'At the end of the day, the iPod drives sales to the iTunes Music Store,' Gartenberg said. 'It didn't happen the other way around.'"

Full article here.

MacDailyNews Take: Just about a month and a half ago, Real's Rob Glaser settled his antitrust lawsuit with Microsoft for $761 million, but just over half of the settlement, $460m, was in cash. The remainder is to be paid for in services from Microsoft, such as advertising for Real's Rhapsody music service on Microsoft's internet portal, MSN. The deal put Real's Rhapsody service in front of millions of MSN users. At the time of the announcement, Glaser was all smiles rolling through the halls of Real's headquarters and said, "over time [Apple's iTunes+iPod] will lose out because of the share of market forces against them." Glaser's decision to opt for access to Microsoft services, and not just cash, might just prove to be huge mistake that's may be impossible to overcome. With this MTV "URGE" deal, it sounds like Real's new partner Microsoft wants to finish them off once and for all. Gates may have just introduced Glaser to his time-tested concept "PlayedForSure."

MTV's hyperbole that they "need concentrate on where there's going to be a bigger market than iPod+iTunes" sounds like very wishful thinking (dreaming) that we've heard many times before from online music outfits not named "iTunes Music Store" and from makers of portable digital music players not named "iPod."

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Related articles:
MTV and Microsoft team up for new digital music service 'URGE' - December 13, 2005
Real's Glaser: Apple iPod+iTunes 'will lose out because of the share of market forces against them' - October 29, 2005
Analyst: Real and Microsoft deal 'doesn't change the dynamics for Apple in any way, shape or form' - October 12, 2005
Microsoft to pay RealNetworks $761 million antitrust lawsuit settlement - October 11, 2005
Piper: Napster, Yahoo, MSN, Real fighting for small slice of Apple iTunes Music Store's pie - September 16, 2005

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Dec 13, 05 - 04:49 pm Comment from: eric

You guys could have photoshopped Balmer sticking his tongue out at Jabba the Glaser....come on.

I'm upset. I will search the archives for those pictures...

Dec 13, 05 - 04:58 pm Comment from: war

They are not targeting iTunes? Come on! Give people some of indication that you think they are intelligent. Micrsoft has become the king of unhip and they are hitching they wagon to MTV to try and gain some sort of cool factor. They should have found a better wagon though. MTV? They haven't really been into the music business since the mid 90s.

MS can have all of the MTV music though. I would rather cut out major organs with a dull butter knife than to have to listen to stuff (aka rap and r&b;) that MTV has on. That is when it actually has on music. I honestly gave up on Mtv as a music source over a decade ago.

Dec 13, 05 - 04:59 pm Comment from: SJR

It's funny watching the rats fight over the remaining crumbs isn't it?

Dec 13, 05 - 05:07 pm Comment from: Mike Buonarroti

Microsoft just doesn't "get it"!

If and when they are ever able to produce an entire end-user experience with the simplicity and quality as iPod/iTunes, only then will they be any threat to Apple's products. This announcement with MTV doesn't bring them any closer to that end.

The world is tired and is no longer willing to waste their time fumbling about trying to successfully piece together a digital solution, no matter what that may be. The age of computers being just the realm of geeks is gone; they should be as simple and as reliable as a car, perhaps even a toaster. Will Microsoft ever wake up to this fact?!

Dec 13, 05 - 05:19 pm Comment from: Otis_G

MTV/Microsoft just doesn't get it. The music sounds the same buying from URGE, Real or iTunes. So I don't care where the music comes from. The difference is that the iPod is iconic, desirable, and works really well. I buy music for my player. I won't buy a player for music.

Dec 13, 05 - 05:22 pm Comment from: Lord Byron

We need to concentrate on where there's going to be a bigger market


Uhh... can ANYONE tell me where that is?

Dec 13, 05 - 05:23 pm Comment from: Tyk

I don't believe that the MTV crowd are the ones really targeting the iPod. I think it's hitting a lot of other demographics now... people in their 30s don't watch the garbage on MTV... and they actually have the money to buy an iPod.

Dec 13, 05 - 05:25 pm Comment from: Mac4lfe

"PlayedForSure" LOL..........

Dec 13, 05 - 05:27 pm Comment from: uh....ok....

Our aim is not to switch people from iTunes and the iPod,' he said. 'We need to concentrate on where there's going to be a bigger market.'

so...what bigger market is he talking about? the mp3/music download market is only so big...and itunes/ipod has ~77% of that. You can't just make up markets and say you're going to dominate it.

Dec 13, 05 - 05:32 pm Comment from: I forgot my Name

1. MTV still plays music?

2. MTV ain't what it use to be so who cares.

3. Have you used Microsoft's Media Player? It's crap. No scrubbing - just Junk.

4. Apple already has access to music videos so where the missing deal for Apple?

5. iTunes. Compatible with the iPods that are gifts this Christmas. MTV - not compatible with iPods. Think of all the people that won't be shopping at MTV/MS. Oops!

6. MTV - not with it.

Dec 13, 05 - 05:35 pm Comment from: numlock

I must admit, that though I am not a great fan of MTV, I did always associate their brand with "hip," but after reading this article, I am starting to associate the MTV brand with "has-been." Do they really think they can get into bed with microsoft and still be respected in the morning?

Dec 13, 05 - 05:35 pm Comment from: MacWrath

"We will be the preferred service" And I will be the richer than Gates.

"We need to concentrate on where there's going to be a bigger market" And I'm bigger than Johnny the Wad

"the network will have to do a better job than other music services to sell consumers on the upside of subscription services..." first they'll have to figure out how they are better. No Case quote will do here, "All the services suck. We just suck less." Will AOL fight for the copyright of the slogan?

Dec 13, 05 - 05:43 pm Comment from: MacDude

Real, Microsoft and MTV

HA HA


Excuse me, but I just got a URGE to urinate.

Dec 13, 05 - 05:43 pm Comment from: justified

I didn't know MTV was still around. What are we talking here . . . hip hop fashion plates and The Real World - Season 36?

Dec 13, 05 - 05:47 pm Comment from: ndelc

Which do people get excited about, the BMW or the Sunoco station?

The store is just a place to fill up your player. Unless they come up with a better player, URGE will be DOA.

Dec 13, 05 - 05:49 pm Comment from: giofoto

Nah.....Glaser will sue them for breach of contract for conflict of interest. boo hoo!

Dec 13, 05 - 06:08 pm Comment from: MO

Just like love, you can't buy cool.

Dec 13, 05 - 06:12 pm Comment from: KenC

The MTV guy must think iTMS only works on Macs, otherwise, his comment seems nonsensical! What bigger markets is he dreaming about?

And, the music industry, though they may be unhappy with Steve's one-pricing fits all, has to love Steve for selling music videos, which reminds them that they've been giving MTV all of this for free. So, how is the music industry gonna like MTV any better than Apple?

Dec 13, 05 - 07:10 pm Comment from: Hemorrhoid Rage

Doesn't MTV just play the same rap video over and over and over, in between clips of the Real World and some spring break party somewhere? Seriously... if you've seen one rap video, you've seen all 100,000.

Dec 13, 05 - 07:12 pm Comment from: Hemorrhoid Rage

Hey... if anyone out there wants to make a rap video (because we know there aren't enough), let me know! All we need is a fish-eye lens and some bright lights, and maybe a hooker or two!

Dec 13, 05 - 07:19 pm Comment from: mike

Glaser is so fsckin played

hahahaha

i guess he didn't read the 'kindly step aside' clause in the contract..

covered in sprinkles and chocolate glaze methinks...

Dec 13, 05 - 07:30 pm Comment from: Road Warrior

Gee and I thought Rob the donut Glaser was preyed for sure. An MTV deal with Microsoft, that article reminds me of the old FUD days.

I sense a certain irony. Remember when Steve Jobs got 150 million and assurances for Office development from Microscoft?

I can just see it now.

Bill Gates: I am pleased to announce that after giving away most of our stock to Apple they have promised us to develop iTunes for Windows over the next 5 years. They sure play for sure and we sure pay for sure.

Dec 13, 05 - 08:02 pm Comment from: podhead

since when does MTV play music anyway--who gives a sh*t!

Dec 13, 05 - 08:10 pm Comment from: Troll

As most who have signed (under duress or desperation) Microsoft contracts before know all too well: Strike a deal with the devil and you're likely to end up in the ... doo-doo-doo-doo doo-doo-doo-doo ... Twilight Zone!

Dec 13, 05 - 09:08 pm Comment from: Gregg Thurman

With this MTV "URGE" deal, it sounds like Real's new partner Microsoft wants to finish them off once and for all. Gates may have just introduced Glaser to his time-tested concept "PlayedForSure."

MTV's hyperbole that they "need concentrate on where there's going to be a bigger market than iPod+iTunes" sounds like very wishful thinking (dreaming) that we've heard many times before from online music outfits not named "iTunes Music Store" and from makers of portable digital music players not named "iPod."


This is a great illustration of what I had said beofre. The problem with iPod competition is that they are not working inco concert to the benefit of them all. They work strictly to their own best interest, without regard to the group.

This creastes an atmosphere whereby your "partner" could be negotiating a better deal with one of your competitors.

I think, of all the iPod/iTMS competitors to come and go, MV may prove the best (as far as downloaded music goes). Their demographic is people that will WATCH TV to listen to music. MTV has a sweetheart deal with the music industry. The labels didn't see the potential in MTV and practically gave the product away for free.

MTV has the potential to leverage elements (free video) that Apple can't get (not to the same extent anyway).

Its still going to take a great deal of colloboration between MTV and MSFT to get the interface right, something neither of them know much about.

Dec 13, 05 - 09:12 pm Comment from: Artisticulated

<i>"Still, the network will have to do a better job than other music services to sell consumers on the upside of subscription services."<i>

There's an upside? Who knew?

Dec 13, 05 - 09:20 pm Comment from: Artisticulated

URGE, by the way, is a horrible name and unlikely to help the cause.

I have the urge to use the restroom. Bad connotation. I urge you to use our service. Too pushy/desperate. We all have our urges. Too primal.

Write about URGE in your 2007 calendar, otherwise no-one will remember it.

Dec 13, 05 - 09:30 pm Comment from: Qman

So when do the iPod commercials on MTV stop???

MW:radio. As in...oh forget it, you guys know.

Dec 13, 05 - 09:30 pm Comment from: LordRobin

Hooray, multi-tiered pricing! 'Cuz that's what the consumer wants! They want to pay this much for this and that much for that and so much for the other thing! What a guaranteed success this will be!

You go, MTV. Prove that Apple has taught you nothing. Just like all of Apple's competitors. They stare at Apple glassy-eyed, wipe the drool off their chin, do the same crappy thing they've been doing all along, and wonder why it isn't working.

"Let's make a player with an FM radio!"
"Let's start a competing music service that only sells WMA!"
"Let's charge a variety of different prices!"

What's that old saying? The definition of insanity is doing the same thing over and over and expecting different results? Apple's competitors all belong in the looney bin.

Dec 13, 05 - 10:20 pm Comment from: informed

I believe it was Lewis Black who said: "MTv is to music what KFC is to chicken."

This is actually good news for Apple. No one who holds a job or uses more than .0001% of their brain watches MTv. This will put the last nail in the coffin of "leveraged brand" online music stores.

Dec 13, 05 - 10:44 pm Comment from: DudeMac

MTV is a brand?! Oh my gosh, people still watch MTV??! MTV hasn't been worthy since the '80s when the music videos went nonstop and we didn't have those dumb MTV shows about nothing. Okay, Beavis & Butthead was really funny, but that's about it.

Dec 14, 05 - 03:37 am Comment from: TheConfuzed1

Similar to the way many people run like sheep to Microsoft, people flock to the iPod, except they actually like the experience.

They go to it because it's the biggest, they stay with it because it's the best.

How in the world can anyone compete with that this late in the game?

MW: peace. Peace out Microsoft! LOL

Dec 14, 05 - 05:20 am Comment from: MacPottyMouth

C-RAP - pronounced "kerrap" is a RIAA supported juvenile assualtive noise designed to express the anger of young black males and wannabe cornrowed wiggers in a verbal abusive manner.

Controled by the surrogate music labels by the US Government, C-RAP is being actively promoted and artists finachially rewarded as a means to circulate wealth into black america to avoid creating a dissent alienated population hell bent on overthrowing the white majority.

Other companies and organizations in control of the US Government includes Microsoft (exploits spying), Cell phone companies (people tracking), Credit card companies (finachial tracking) and the major religions.

The MIAA and RIAA are propoganda ministers.

You have been advised.

Dec 14, 05 - 05:22 am Comment from: fandango

"The MTV brand could help spark interest in non-iPod players, Leigh said"

The 'MTV brand' wouldn't help spark interest if they were selling piles of gold. Since they are peddling pile of dog poo instead, their collusion with Mafiasoft won't help them.

The 'MTV brand' doesn't mean anything (anymore) but mediocrity.

MaWo: 'did'. As in, "Did you hear what MTV did? No? Neither did I."

Dec 14, 05 - 07:15 am Comment from: Undercover Mac Brother

The bigger market is Mobile Phones. MTV has an amazing collection of music video content which is perfectly suited for mobile downloads.

Dec 14, 05 - 07:52 am Comment from: Macaday

Sort of on subject... but do you drive an Audi? Interested in the new Le Mans Audi R10 - then go to the Audi site where you can see video of it - not in Quicktime, not in Realplayer - but only in Windows Media Player.

If you feel like me you'll give Audi the feedback they deserve!

As for Rhapsody, Urge et al, its time they realised that this ship has sailed. Not a question of tail lights as Job's said - its a case of its already gone over the horizon!

Dec 14, 05 - 08:31 am Comment from: max

Krispy Kremes on me.

Dec 14, 05 - 11:58 am Comment from: MTV Networks

1-MTV (otherwise known of as the Jerry Springer channel for slackers) ceased to be about music a LONG time ago.
2-VH1 (about everything BUT music) ceased to be about music a LONG time ago.
3-CMT (Country music clone of the MTV formula) less and less about music everyday.
4-Spike (Formerly the Nashville Network) should be called USA lite or the rerun channel.
5-BET (formerly Black Entertainment Television) is 'mo of the same.
6-Comedy Central (with the exception of the Daily Show) is a collection of lame reruns, etc.

That adds a lot of value to a music brand, doesn't it?

Jan 05, 06 - 02:28 pm Comment from: Mark

Too late...itunes are the biggest and best. As for urge not supporting ipods, they are just shooting themselves in the foot early on.
Microsoft Urge

Jan 07, 06 - 06:49 am Comment from: Paul T

MS Urge, or Turd, urge to Turd

Actually I'm an Astologer and I cast a chart for MS 7 years ago and it predicts that the slide of MS will accelerate in 2007 which coincidentally is when MS vista comes out right? RIP

Sep 15, 06 - 02:41 am Comment from: Nicholas

Bullshit. I'm an M$ and your trying to make me switch to "Windows Portable Media" players. What a load of crap I payed hundreds of dollars for my ipod and I ain't going to switch to M crap.
I just want to be able to download from Urge and sync to ipod. or maybe itunes should come up with a simliar service. But they can't due to stupid record companies getting all scared of piracy. Why can't I have an URGE like subscription to the Itunes music store where I can downloaded as much music as I want?

Jul 22, 08 - 10:52 pm Comment from: j55d1h533j

hatejff2 http://www.547387.com/585340.html 1nmom822hg

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