Microsoft Zune's Revenue Nosedives in Q4

It seems that Microsoft’s Zune just can’t catch a break. Despite a holiday ad blitz and introduction of new services — including a feature that lets subscribers keep 10 free songs a week — revenue for the Zune division fell 54 percent in the fourth quarter from the previous year.

That’s a drop of about $100 million, according to a recent Microsoft regulatory filing. However, a company spokesman said any rumors pointing to the demise of the brand or the service are patently false.

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