Yup, it’s not a rumor, folks. Microsoft is in fact, working very hard on their answer to downloadable music services.

Microsoft’s Subscription Music Plans Start To Take Form: A Microsoft subscription music offering has been a “when, not if” question since the launch of the MSN Music Store last fall. CNET’s John Borland offers a “sources said” look at how close the company actually is to subscription music — a move that could disrupt Microsoft’s status as a DRM/mediaplayer/software solution for other subscription services. Microsoft’s Janus codec plays a vital role in the portable services offered by Yahoo, Real and Napster. [Read the rest]