Loudeye, a digital music company, and Microsoft will be working together to help other companies build their own digital media business, such as online music sales.

With the flood of companies attempting to open their own online music service, (iTunes from Apple Computers, At&T, BuyMusic.com from Buy.com, Napster 2.0 from Roxio, WalMart & MusicNow from MusicMatch) profits are expected to be slim.

Loudeye feels that many businesses are starting online music sites in order to promote other services or products that they offer. Apple's iTunes doesn't make the company money, but it does help sell the iPod digital music player.

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