How music labels, Hollywood studios and consumers answer that question could determine whether the software giant dominates digital media the way it does Web browsers or desktop productivity applications, say analysts.
The Redmond, Wash.-based company is engaged in a tried-and-true tactic of giving away highly valuable technology as a means of getting a foothold in an emerging market. The strategy, which was instrumental in Microsoft’s victory in the so-called browser wars, is being replayed in the digital media market. “Windows Media, that whole division, is an investment,” Rosoff said “They’re not making money on it, and they don’t plan to make money on it.”
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