Microsoft protecting rights or Windows

C|Net | at | by Mike

How music labels, Hollywood studios and consumers answer that question could determine whether the software giant dominates digital media the way it does Web browsers or desktop productivity applications, say analysts. The Redmond, Wash.-based company is engaged in a tried-and-true tactic of giving away highly valuable technology as a means of getting a foothold in an emerging market. The strategy, which was instrumental in Microsoft's victory in the so-called browser wars, is being replayed in the digital media market.

The stakes may be as high; analysts see digital media, like the rise of the Web, as driving the next great wave of PC sales. Microsoft, not surprisingly, wants to make sure Windows becomes a "preferred platform" for using digital media," said Directions on Microsoft analyst Matt Rosoff.