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Windows Media Player replaced an earlier piece of software simply called Media Player , adding features beyond simple video or audio playback. These include the ability to copy music to a compact disc, synchronise content with an MP3 player, and let users buy music from one of several online music stores.

Windows Media Player competes with other freewareThis article refers to software available free of charge. For "free software" as defined by the Free Software Foundation, see Free software. Freeware is computer software which is made available free of charge. Typically freeware is distributed without so programs such as RealNetworks'RealNetworks is a Seattle-based provider of Internet media delivery software and services. The company is best known for the creation of RealAudio, a compressed audio format, and RealVideo, a compressed video format, and for its early market leadership in RealPlayerRealPlayer is a media player, created by RealNetworks, that plays a number of multimedia formats including multiple generations of RealAudio and RealVideo codecs as well as MP3, MPEG-4, QuickTime, etc. The first version of RealPlayer was introduced in Apr, Nullsoft'sNullsoft is a software house founded by Justin Frankel in 1997. As a team of developers, they have created several popular computer programs, notably the media playback software Winamp and the streaming MP3 server SHOUTcast. The company's name is a humoro WinampWinamp is a skinnable, multi-format music/ media player made by Nullsoft that currently can be used only on the Windows operating system; it is available for free, although a "Pro" version with additional features is available for a small payment to cover, and Apple Computer'sApple Computer, Inc. is a Silicon Valley company based in Cupertino, California, whose main business is computer technologies. Best known for its range of Macintosh computers and, more recently, its iPod personal audio ( MP3 and otherwise) player and iTun QuickTimeQuickTime is a multimedia technology developed by Apple Computer, capable of handling various formats of digital video, sound, text, animation, music, and immersive virtual reality panoramic images. There are three main components to the QuickTime technol.

Windows Media Player comes bundled with the Windows operating system; however, the newest versions of the player are meant to require the newest versions of the OS. Some view this practice as an echo of Microsoft's success in driving out Netscape Communications Corporation from its dominant position in the web browser market, only this time, they contend Microsoft is attempting to drive its competitors in the streaming media market out of business.

In March 2004, the European Commission fined Microsoft €497 million and ordered the company to provide a version of Windows without Windows Media Player, claiming Microsoft "broke European Union competition law by leveraging its near monopoly in the market for PC operating systems onto the markets for work group server operating systems and for media players". Microsoft is currently appealing the ruling.