Microsoft is said to be planning a rival to Apple's phenomenally successful iPod music player and the iTunes music service
Microsoft has apparently held licensing talks with the music industry to form its own music service

Rumours hint at Microsoft iPod killer

Microsoft has already demonstrated a device, according to insiders

William Eazel

Microsoft is said to be planning a rival to Apple's phenomenally successful iPod music player and iTunes music service.

Sources close to the discussions claimed that Microsoft has already demonstrated a device that plays music and video, and has held licensing talks with the music industry to form its own music service, according to a report from Reuters.

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Microsoft is remaining tight-lipped about the developments, and has not mentioned a possible launch date.

The software giant already provides the copyright framework for some worldwide subscription music services, none of which has been able to shake Apple's domination of the market.

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