Subsidized Zunes

Microsoft is considering subsidizing future versions of its Zune player, the company's Zune marketing lead Jason Reindorp has said. The executive observed that the Zune Pass unlimited subscription service, which is a key difference between it and the a-la-carte downloads of iTunes, could give Microsoft a means of undercutting the pricing of the iPod. Buyers who attach a long-term contract to the player could see some if not all of the price eliminated, much as cellphone carriers do today.

"We've been looking at the subscription model where you pay a certain amount and you essentially get the cell phone for free," Reindorp said.

The offer would become especially realistic for future Zune players, which the marketer has previously said may include less expensive flash players as well as a Zune phone whose subscription model would already lend itself to the Zune Pass, which costs $15 per month.

Reindorp hadn't revealed any definite plans for either the subscription model or fuure devices, but reiterated that there should be new devices on tap towards the end of 2007 that break away from the current, 30GB hard drive model.

By Electronista Staff