Investment in Zune Is Worth It, Microsoft Says

Microsoft Corp.’s plans to offer an iPod competitor could take up to five years of investment, but the spending is worth it in part because it will help the software maker’s broader entertainment agenda, a company executive said.

Robbie Bach, president of Microsoft’s entertainment and devices group, told financial analysts that the company’s planned Zune product line would require millions of dollars in investment and would not pay off immediately.

But Bach said Zune was key to Microsoft’s overall entertainment ambitions and would capitalize on -- and tie into -- the company’s other entertainment offerings.