There is no question that their execution has been less than brilliant over the last 12 months.

There is no question that their execution has been less than brilliant over the last 12 months. Our business does rely on Microsoft's digital rights management software and our business model also relies on Microsoft's ecosystem of device manufacturers.

A lot of people following this story in the media and investors... are really focusing on the tree and are not stepping back and looking at the forest. To date, only five percent of (music) sales have migrated digitally. We are in the very, very early days of this.

I don't think free music is a hard sell.

It's a lot more complex to get organized properly than it is to build one device and one service as Apple has done. It's always been painful at the introduction of new technologies. But it always takes shape like it's done in the past.