May 10, 2005
Yahoo to Launch New Music Service
Bye bye Napster. Bye bye Real. Yahoo is launching a new music service that will use Microsoft Janus technology in offering monthly music subscriptions for over 50% off the competition's prices. It is set to launch sometime on Wednesday and will offer integration with the Yahoo Messenger instant messaging platform. This is perfect for teens who want to share music playlists and let their buds listen to their favorite songs together.Online music stores are increasingly becoming a commodity business. At least Yahoo has their 300 million users and complementary services like Launch and instant messenging. Apple has the monopoly of forcing its iPod users to use iTunes. Bad news for pure plays like Napster and Real, they got nothing.
As earlier reported, the service is built in large part around a monthly subscription plan similar to those now offered by Napster and RealNetworks, which allow customers to take music onto their portable devices. However, Yahoo is deeply undercutting those rivals' prices, offering initial monthly subscriptions for just $6.99, compared with nearly $15.
