Microsoft To Launch iTunes Rival?

More rumours are circulating the net that Microsoft is planning on going head-to-head with Apple by launching a music service to compete with iTunes.  Reuters are the latest source, citing un-named 'sources', who have revealed that Microsoft is already having discussions with the big music publishers on licensing their tracks for the new service. Robbie Bach, who led the development of Microsoft's Xbox video game business, is allegedly in charge of the new project.

It's going to take something very special and a lot of cash to challenge iTunes market leading position, but if anyone has the resources and the will to make it happen it's Microsoft. 

The software giant would also have a lot of allies, as the music industry will certainly support any company that could challenge Apple's dominance of the sector.  With a 80% market share Apple is currently  dictating terms in the industry, and the labels are getting tired of Apple's 'one size fits all' approach to pricing and want differential pricing for tracks.

Personally I would like to see this happen as I would like to see more competition in the mp3 player market as well.