Competition is hot these days in the music-download biz and Microsoft's $14.99 a month Zune Pass may instead get chopped down to $9.99, according to senior product manager Terry Farrell in an interview with Business Week.

While Phil and I think the $14.99 a month price is fair (you get to purchase 10 songs a month with that $14.99, in addition to unlimited downloading), others in the industry, notably Amazon and Rhapsody, offer a similar service for $10.

Microsoft does need to position itself here carefully: they want to make a profit and find that sweet spot, but they also want to make sure when you buy an upcoming Windows Phone 7 device, you take advantage of the Zune Marketplace.

Finding just the right combo could be killer, because while Amazon has some presence on mobile (notably Android), Rhapsody is less straight-forward and has less presence. (Plus in comparison, Zune Marketplace is a better experience than Amazon's on Android). This is still the one area that Microsoft can really exploit against Apple, who still don't have a monthly pass subscription.

And while they're at it, we'd like to see Microsoft implement some type of Zune Video Pass, which was rumored to be coming. The idea of having unlimited video streaming/downloading on my Windows Phone 7 would be fantastic.

[via Business Week & Zune Boards]