Microsoft Considers Zune Subsidies

What do you do if you make the next "iPod killer" and no one buys it? If you are Microsoft, you consider cell phone-style subsidies to help boost sales. PC World reports that Microsoftis Zune marketing director, Jason Reindorp, said the company is considering subsidizing Zune sales much like cell phone carriers do.

Mr. Reindorp stated that Microsoft is looking at using it music subscription service to help boost Zune sales. "Weive been looking at the subscription model where you pay a certain amount and you essentially get the cell phone for free."

In essence, users agree to a monthly music subscription contract, and in return Microsoft gives them a Zune player.

Despite the fact that the company is considering somewhat drastic measures to help boost sales of its portable media player, Mr. Reindorp said Microsoft is pleased with its sales so far. "We are very definitely on target," he said.

He added that Microsoft is considering some changes to the Zune path, and that a Zune-based cell phone is also a possibility.