Zune will work with a Microsoft service that allows users to listen to a vast library of songs for a monthly subscription fee. These services act more like a rental service for music, although users can pay more to purchase permanent copies of songs. The model is used in RealNetworks' Rhapsody service. It isn't a direct competitor to Apple's market-leading iTunes Music Store, which is not subscription-based and sells songs and videos on a for-purchase basis. A subscriber will be able to share an entire play list of favorite songs with another person, as long as both are paying the monthly fee. The Zune service will also go beyond previous services in terms of allowing artists to connect directly with users in new ways. An artist could offer weekly releases over Zune, for example. One week might be a tour of that person's home or a spoken message to fans.
The Seattle Times: Business & Technology: Microsoft confirms its rival to iPod
Well, if this doesn't prove the pc industry destroyed I don't know what does.