Microsoft terminating Musiwave operator deals

Microsoft is reportedly informing its mobile operator partners that it will terminate their access to the Musiwave mobile music service once their existing contracts expire. Citing anonymous sources, The Register reports that Microsoft--which acquired [1] Musiwave for $46 million in Nov. 2007--notified operators by letter on Sept. 9; Musiwave solutions power music, video and ringtone services for carriers worldwide, driving more than 50 million downloads annually for operators including T-Mobile, Vodafone and Orange.

Microsoft is not shutting down Musiwave, however--instead, sources say the software giant will incorporate the Musiwave platform into its Zune Marketplace digital media storefront. Microsoft will reportedly tie Musiwave exclusively to its Zune portable music player and Zbox 360 game console, creating an exclusive service to rival Apple's iTunes. Despite Microsoft's repeated denials [2] it plans to release a converged Windows Mobile/Zune multimedia-enabled phone, CEO Steve Ballmer revealed [3] in Oct. 2008 that the firm plans to adapt the Zune software platform for implementation in the Windows Mobile OS. "At the end of the day, one of the big trends is that all content is going digital," Ballmer said. "And if we don't have the software and services that are useful, helpful and valuable for the consumption of music and video, we are sort of not really a player."

In addition, a mid-2009 trademark filing suggests Microsoft may be planning to launch a second mobile application storefront in addition to its forthcoming Windows Marketplace for Mobile, this one focusing on apps that span multiple device platforms including the Zune HD portable media player. Blogger Long Zheng--who in September 2008 unearthed [4] the job advertisement that first identified Microsoft's app store plans--uncovered [5] trademark application 77775625 [6] for "OneApp," classified as a trademark for "online retail store services facilitating the download of computer software for use on mobile phones, media players and other portable electronic devices."

The filing goes on to outline "computer software for allowing mobile device users to send messages, make payments and access and play music, games and videos on mobile devices; computer software platforms for developing mobile applications; computer software, namely, software development tools for the creation of mobile applications; computer software for running retail store site for purchase and download of mobile applications over wireless networks." As Zheng notes, the OneApp brand suggests that applications would be universal across various Microsoft-powered devices, a theory bolstered by news that the Windows Mobile 7 team is collaborating with the Zune unit.

For more on Microsoft's Musiwave decision:
- read this Register article [7]