Yesterday I gave Microsoft some ideas on how they might be able to take on the Apple iTunes/iPod model. One of my ideas involved having Microsoft eating some of the cost of movie and music downloads so they can increase market share.

Interestingly today I came across an article today that talks about free music from Universal. The article describes how a company called SpiralFrog is making the music available in an ad-supported way meaning it is free – as long as you watch some ads.

If this is a trend and not a fad, Microsoft needs to take notice and find a way into this market immediately. They need to leverage ad-supported music and videos is this could be the best way for them to play in the iPod/iTunes space.

Couple a strong product in music with Microsoft’s OS strength and video game growth and you have a pretty well rounded consumer electronics play.