Microsoft Corp., the world's largest software maker, said Friday it was interested in offering an online music subscription service, sending shares of online music rivals lower Friday.
Microsoft, which launched its MSN Music download service last year to rival Apple Computer Inc.'s iTunes, said Friday that "offering a subscription service was an important step in helping people find and discover great music online."
"We are actively investigating the subscription model, but we don't have anything to share today," Christine Andrews, lead product manager of Microsoft's MSN Internet division said, "Once we are ready to talk more, we'll let you know."
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Reports that Microsoft was getting closer to launching a service hit shares of Apple, sending its stock down nearly 5 percent to $35.81.
Shares in RealNetworks Inc., the largest provider of music subscription services, fell over 3 percent to $5.01 Friday.
Music subscription services, such as RealNetworks' Rhapsody service, allows users to stream an unlimited number of songs for $10 per month, instead of charging users for each downloaded song.
Napster Inc., which was instrumental in the spread of downloaded music, and Yahoo Inc. also offer music subscriptions. Napster shares fell 4 percent and Yahoo shares dipped 1.7 percent.
