Microsoft modifies Zune subscription model

Microsoft's Zune media player is shown for the first time to the media in Redmond, Washington September 14, 2006.

(Reuters) - Microsoft Corp (MSFT.O) on Thursday announced a new music subscription plan for owners of its Zune players, which would allow them to keep 10 tracks per month and add them to their permanent collection.

The Zune Pass subscription service currently gives consumers on-demand access to millions of tracks for $14.99 per month.

Effective Thursday, the software company's modified subscription plan would allow owners of Zune to keep 10 tracks per month, which has an estimated value of $10. The users can also add those tracks to their permanent collection.

The company said agreements have been signed with the big four music labels -- EMI Music, Sony BMG Music Entertainment, Universal Music Group and Warner Music Group -- and also with a few independent distributors.

A Zune Pass would allow the user to download music and the downloaded content can be shared among up to three PCs and three Zune devices, the company said.

Zune Pass subscribers can retain digital rights management (DRM)-free MP3 tracks from Sony BMG and UMG.

The tracks can be burned to a CD or moved to other devices even if the subscription ends, the company said.

(Reporting by Sakthi Prasad in Bangalore; ; Editing by Greg Mahlich)