While Howard Stern may call himself the “King of All Media,” Microsoft
is fast becoming a significant player in all forms of digital content distribution,
reports In-Stat/MDR (http://www.instat.com).
Whether it’s broadcast, Internet, packaged goods such as DVDs, or Video on Demand,
Microsoft’s push into digital media has bought the company a seat at the table
when it comes to discussing the direction of these various content channels,
according to the high-tech market research firm.

“The move from operating system vendor to media software giant has been
a long time in coming,” said Mike Wolf, principal analyst with In-Stat/MDR’s
new Consumer Media and Content Group. “From its investment in Movielink,
plans for online music, Xbox, the Windows Media Series 9 platform
for delivering content over any network, its Digital Rights Management offerings,
and Media Center PC initiatives, Microsoft is increasingly doing business with
those who control the creation and delivery of content.” Wolf believes
that the company’s goal is not to own a huge media company, as recent speculation
about a possible Microsoft bid for Disney would portend, “but instead to
have its hand in as many pies as possible through its end-to-end tools. The
company will continue to make itself relevant, and hence its core products,
such as the Windows operating system, by adding value.”

The commoditization of the PC business and the lack of compelling reasons for
consumers to upgrade their PCs has pushed Microsoft to make the PC more than
just a productivity center. Now Microsoft and the PC industry are positioning
the computer as the central hub for the digital lifestyle, an electronic storage
chest of entertainment content and photos. However, the move to position itself
at the center of the digital media revolution will not be an easy one. “There
remains a number of obstacles to Microsoft’s push into digital content,”
said Wolf. “Content and consumer electronics companies are wary of becoming
too dependent on Microsoft and are working to keep alternative technologies
alive.” Government intervention will be another hurdle, as exemplified
by the recent decision by a European Union advisory panel to punish the company
and potentially require Microsoft to extract Windows Media from the operating
system.

The report, “The King of All Media?: An Analysis of Microsoft’s Content
Strategy” (#IN0401556CM) is the first report published in In-Stat/MDR’s
new Consumer Media and Content service. This service provides insight and advice
to content companies and their partners on how existing models will be impacted
by convergence technologies. The report examines the different motivating factors
for Microsoft to be involved in the content market, how its involvement will
impact content players and its competitors, and how content companies should
engage with Microsoft as its presence continues to grow. To purchase this report,
or for more information, please visit: http://www.instat.com/catalog/Ccatalogue.asp?id=212
or contact Erin McKeighan; emckeighan@reedbusiness.com or 480-609-4551. The
report price is $2,495.

About In-Stat/MDR
In-Stat/MDR (http://www.instat.com)
offers a broad range of information resources and analytical assets to technology
vendors, service providers, technology professionals, and market specialists
worldwide. The company stands alone in its ability to integrate both supply-side
and demand-side research methodologies into a single comprehensive view of technology
markets and products. This capability relies on a unique ability to cover the
entire value chain from engineering-level technology, through equipment, infrastructure,
services and end users. In-Stat/MDR is part of the Reed Electronics Group, a
division of Reed Elsevier (http://www.reedelsevier.com),
a world-leading publisher and information provider. With over 38,000 employees
worldwide, Reed Elsevier operates in the science & medical, legal, education
and business-to-business industry sectors, providing high value and flexible
information solutions to professional end users, with increasing emphasis on
the Internet.

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