In what’s probably a reaction to recent reports of missing music in the Zune Marketplace, Microsoft has hired an outside firm to help clear music for your Zune Pass subscription service.
In an announcement today, Music Reports Inc. announced an agreement with Microsoft to “administer the music publishing licensing and royalty accounting for the Zune Pass subscription service in the United States.”
The use of licensed music outdoors is a new step for Microsoft and its Zune music service. However, the change in firms points to shortcomings in the previous arrangement, evidenced perhaps by the disappearing music snafu. Microsoft did not comment on the new partnership officially.
International expansion of service to music via the Zune phone for the next round of Windows 7, may also play a role Microsoft’s new hire. The statement from Music Reports specifically says its role is limited to the United States. Microsoft can work with multiple international partners to ramp up the Zune music service for its mobile operating system.
Barriers of licensing a music subscription service in several countries is a daunting task. Similar subscription services, such as Rhapsody and Slacker, have a limited scope outside the United States , due to the expense and complexity of arranging the required licensing and publishing agreements. Only Napster has successfully tied up music subscription deals in both the United States and Europe.

February 17th, 2010
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