Microsoft have recently broken off licensing talks with the four global music companies which has made analysts wonder whether the software giant plans to offer a subscription based music service.
The Wall Street Journal reported Tuesday that talks broke down due to high royalty rates sought by EMI, Warner Music Group, Universal Music Group and Sony BMG.
Microsoft haven"t announced a subscription based music plan but have long been considering such a move according to industry analysts.
Recent reports cited from unknown sources pitted Microsoft in talks with Time Warner"s AOL Service which has a music subscription plan.