Microsoft, chasing Apple, adds TV shows to Zune Marketplace

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Redmond, Wash.-based Microsoft said it also planned to send out software updates overnight that add new features to the Zune devices and the PC software used to buy and manage digital content.

Microsoft ventured into downloadable video sales for Zunes last October when it released its second-generation players and software, but the content was limited to music videos.

Starting Tuesday, Microsoft will sell episodes of TV shows including Comedy Central's "South Park" and Sci-Fi Channel's "Battlestar Galactica" for $1.99 each.

In a small victory over Apple, Microsoft said the Zune Marketplace will also carry NBC shows including "The Office" and "Heroes." NBC Universal has said it pulled its shows from iTunes over Apple's unwillingness to set different prices for TV shows.

Microsoft spokesman Jason Reindorp said flexible pricing is within the scope of its agreement with NBC, but that there are no concrete plans.

The software maker still has a lot of work to do to catch Apple. Since the first Zune went on sale in November 2006, the software maker has sold "just north of 2 million" of the devices, Reindorp said. Apple sold 10.6 million iPods in the first three months of 2008 alone.

But the Zune offers some capabilities the iPod doesn't. One Microsoft is betting on is its Zune Pass subscription service, which gives users access to every song in the catalog for $14.99 per month.

Reindorp said TV shows aren't available as part of the subscription service yet, but that Microsoft is looking this year at making Zune Pass less expensive or including more content in the monthly fee.

Zunes can also synchronize wirelessly with PCs, something iPods and Macs can't do. Users can plug a Zune into its charger anywhere in range of their home Wi-Fi network and the device will update itself automatically.

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