Microsoft Inc, trying to regain to lost market share in smartphone market, is evaluating and integrating new ways to its upcoming Windows 7 phone. Company is constantly working on new features and said users will be able to able YouTube clips and NetFlix Movies over Windows 7 phones. Windows 7 phones are reportedly set to launched by October.

The phones will feature Google Inc.’s YouTube even though they don’t support Adobe Systems Inc. Flash technology, Brandon Watson, a director for Windows Phone 7, said at an event yesterday at Microsoft’s Redmond, Washington, headquarters.Watson also demonstrated applications from Netflix Inc., OpenTable Inc., Travelocity.com Inc. and Flixster Inc

Microsoft revamped its mobile software amid share losses to Apple Inc.’s iPhone and handsets with Google’s Android operating system. Microsoft said in July it has provided financial incentives including funds for software development and marketing to attract app developers to help the company create more compelling programs for its operating system.

The company’s share in the global mobile-phone market fell to 5 percent in the second quarter, from 9.3 percent a year earlier, according to market research firm Gartner Inc. Android climbed to 17 percent from 1.8 percent while the iPhone rose to 14 percent from 13.

Microsoft will release today the final version of a free toolkit for application developers. The package includes copies of Microsoft’s Visual Studio tools for mobile and a design program called Expression Blend.