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New Hardware Could Affect Online Subscription Pricing

By Christian Castle

Microsoft has recently introduced a new application, currently called “Janus,” that allows tethered downloads to be exported to Janus-enabled portable devices. There are two devices available that use Janus and retail in the $500 range.

If Janus players become prevalent (although it is hard to see how they will ever overtake the iPod's market dominance), online services that offer both on-demand streaming, tethered downloads and permanent downloads may find a drop-off ' perhaps sharply ' in the sale of permanent downloads, because users will not have an economic incentive to buy permanent downloads when they have access to unlimited tethered downloads that can be transferred to portable devices enabled with Janus.

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