As the major record labels try to remake online music in their own image, Microsoft's presence is looming powerfully enough to influence the biggest alliances in the business--even if the software giant hasn't struck the big deals itself. Microsoft ultimately hopes to offer music subscription services on its MSN site, charging customers a monthly fee. But the record labels have been wary of handing it too much power over their online plans, and the software giant has yet to broker the alliances that would let it offer access to the labels' full catalogs, as have Yahoo, Napster and archrival RealNetworks. Nevertheless, the company has been able to use the growing influence of its Windows Media audio and video technology as leverage over the rest of the industry.
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