Microsoft and MTV to take on Apple's iTunes

With Apple's market share hovering around an estimated 80%, Microsoft and MTV have announced plans to launch a competitor to the popular iTunes service.

Dubbed Urge, the companies plan to leverage Microsoft's technology and MTV's domination of the music television market to launch the service with 2 million songs from major labels and independents. As a second tier to draw interest into the site, they plan on adding exclusive MTV programming and other content as well as both a-la-carte and subscription models.

In addition to the music and content, the site will boast a MySpace-like online community and will be complementary to the VH1 and CMT networks as well as the more youth-oriented MTV.

Microsoft has struggled in the past year to compete with Apple, and despite their ostensibly open copy-protection platform - which does not include the iPod - they have failed to make a serious dent. Some analysts have argued that adding new download services doesn't stand to errode Apple's lead, but instead create a smaller pie for the new services to cut into ever smaller pieces. There is also some concern that Apple's lead will allow them to force independent labels and artists into inequitable deals.

Other popular independent download services include Downloadpunk.com and Audiolunchbox, both of which specialize in DRM-free MP3s. Downloadpunk also has pledged to donate 1% of income (minus card processing) to a selected group of charities.