"Regardless of the outcome of DRM for music downloads, DRM technologies will still have a key role in enabling businesses involving digital content. ... Other areas include the delivery of high quality video content, such as movies. Our role continues to be to deliver flexible DRM technology that provides choice for the content owner in how they distribute their content and choice for the consumer so that they have access to a wide variety of high-quality content and ways to enjoy that content."
They actually don't seem to be as enthusiastic about it as they'd like, which makes sense considering the huge investment they have put into DRM with Windows Media Player. However, you can be sure that if Apple starts making music available that can be tinkered with at will, Microsoft won't be far behind. The demand for such freedom continues to grow, and they don't have a choice but to follow along with the continued success of the iPod.