Zune to Encompass PMP and Software Applications

Los Angeles -- Microsoft has finally confirmed the existence of Zune. However, with the confirmation, it has also been announced that there will be multiple players and software products marketed under the name.

"Today we confirmed a new music and entertainment project called Zune. Under the Zune brand, we will deliver a family of hardware and software products, the first of which will be available this year," said Microsoft general manager of marketing Chris Stephenson.

Stephenson also mentioned that WiFi will not only be used for the previously discussed community- based music sharing or streaming, but also to access the Internet. The Internet access will give Zune players the ability to access Microsoft's online music store from anywhere. This would give Microsoft a big leg up on Apple and its iPod which currently requires a PC or Mac to download and sync digital content.

Microsoft has also thought to expand the Zune user experience by allowing users to share their content with the XBOX 360, Windows Media Center based PCs and Windows Mobile-based mobile phones. Microsoft is really looking to expand its portfolio of “Live” services and Zune is likely to be a big part of its strategy.

As per the reports, Microsoft is planning a huge marketing blitz at launch for Zune that will be akin to lavish XBOX 360 launch (that launch cost Microsoft around $ 500 million). The campaign is likely to include live performances by popular artists and a rumored Super Bowl commercial.

Additional Zune-branded devices will follow, including a portable video player and, potentially, a portable game device, although Stephenson would not comment on the videogame element of the initiative.

"The ability to connect the different devices is a key part of the strategy," Stephenson says. "Whether it's a portable media device, or a phone, or the Xbox or Media Center PC, the idea is you can access your entertainment from anywhere."

Music will be the primary content at first, but will eventually expand to include video and other types of media. Microsoft and music industry sources say there currently are not any licensing deals in place.

Record label executives briefed on the device and service give high marks to this community strategy.

"We're incredibly excited by it," says George White, senior VP of strategy and product development at Warner Music Group. "It's something that we hoped peer-to-peer services would bring to the digital retail space."