EMI to preload music videos on Microsoft's Zune (Reuters)

NEW YORK (Reuters) - EMI Group Plc, the world'sthird-largest music company, said on Thursday it had signed adeal to provide preloaded music videos on Microsoft Corp.'ssoon-to-launch Zune digital media player.

The London-based company said the deal would see artists,including American actor Jared Leto's alternative rock band 30Seconds To Mars and English electro-pop band Hot Chip, featuredon the player when it goes to market later this year.

The news dispels speculation in media reports this monththat Microsoft would have to delay the introduction of Zune'svideo capability until after its launch, which is expected tobe in time for the year-end holiday season.

Sources at record labels, who have seen the new player, sayits wireless capability and a feature that allows some sharingof music between users are what differentiates Zune from AppleComputer Inc.'s market-leading iPod.

"Apple has been an important partner in building thedigital music market but any well-funded serious entrant hasgot to be good news for the artists and industry," JeffKempler, executive vice president of EMI unit Virgin RecordsAmerica, told Reuters.

The iPod has more than half of the digital media playermarket, according to research company NPD, while Apple's iTunesonline music download service has a market share of more than70 percent of U.S. digital music sales.

Microsoft, which was not immediately available for commenton Thursday, announced plans for Zune last month, in a moveseen by industry analysts as a belated attempt to challengeApple's dominance in both digital audio and video downloads.

EMI said it believes its artists' videos will be preloadedalongside those from other record companies, but declined todiscuss the device in detail.

Universal Music, owned by France's Vivendi, said it is indiscussions with Microsoft on Zune but would not give anydetails. Warner Music Group Corp. and SonyBMG Music could notbe immediately reached for comment.

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