MSN makes moves on AOL

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Microsoft Network is preparing to take its best shot at online arch-rival AOL Time Warner with new music and messaging services, Reuters reports.

MSN will launch a digital music subscription service and its own instant messaging service to challenge America Online's current Web dominance. AOL claims 27 million subscribers to MSN's four million. But MSN also draws additional Web surfers to its menu of services, including its Expedia travel service, CarPoint and the Hotmail e-mail site.

Meanwhile, last week MSN suspended $400 rebates for its service to new PC owners.

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