(Column) - Well, it had to happen sooner or later, and if you ask me, the sooner the better. With the obvious popularity of Apple’s video iPod and the downloadable content, everyone is interested in cashing in on the opportunity. With Microsoft’s Live! application, the software giant plans to cash in the Internet way.

A partnership with MTV brings Microsoft the resources from the entertainment industry and a widely recognized brand.

The service, called Urge, will be available and integrated with the new version of Windows Media Player next year. We had talked about this feature in WMP 11 in our Windows Vista roundup earlier this year, and it looks like the feature is finally here with a productive usage model.

Microsoft is not just against Apple, but it’s against a phenomenon that makes a user pay for content because of the excellent quality as well as the super affordable price for the content. The reason why Apple can do this is because of the iPod (Apple expects to ship approximately 40 million units soon). Now that is some serious leveraging power. Microsoft does not yet have a multimedia product that’s remotely as popular as the iPod; therefore, the service would have a tough time competing against the iTunes Music Store.

The thing is: would Microsoft be able to get enough quality content that would justify us moving to its service for music and sticking to iTunes for video? Why not just stick to one that provides everything? So logically, iTunes wins by default.

What I would love is if Microsoft learns something from Google, embed ads in content (the ads must be targeted, tasteful and toned down similar to Google Adsense), "request" us to look at a particular ad and then make the content free. That would generate revenue for Microsoft, its licensing partners and users would get to have the content at no cost. It’s a win-win situation for everyone, and as an incentive, Microsoft would possibly get to dominate Apple’s iTunes.

Meanwhile, Apple isn’t sitting still. It’s working furiously at partnerships and licensing agreement to enhance its content library.

Frankly, it’s not about iTunes and its content library (though it’s a significant aspect of its success); it’s the deadly combination (ease of use) of iTunes and the iPod that attracts users. To beat it, Microsoft will need to quickly update its service with videos and provide the content at really economical prices, if not free altogether.