A “Real” Yahoo! of a Price War!

Yahoo!
Yahoo!
Yahoo!

According to Wired.com – Internet powerhouse Yahoo is introducing an online music subscription service that will enable consumers to download thousands of songs onto their portable MP3 players for $60 annually, undercutting the prices of the current industry leaders by more than 60 percent.

 

The Sunnyvale-based company planned to unveil “Yahoo Music Unlimited” Wednesday in a direct challenge to similar subscription services offered by Real Networks and Napster.

Yahoo is offering unlimited downloads from a library of 1 million songs for $6.99 per month or $60 for an annual subscription. That’s a sharp discount from Los Angeles-based Napster and Seattle-based Real Networks, which both charge $14.95 per month, or just under $180 annually, for similar services.

By encouraging consumers to become song renters instead of song owners, Yahoo, Napster and Real Networks are pursuing a different sales approach from Apple Computer’s popular iTunes music store.

Under the rental model, consumers must pay a recurring fee and synchronize their portable music players with the subscription service at least once a month to preserve the music. If the subscription expires, the previously downloaded music becomes unplayable.

Rent or buy … I wonder it someone is going to make this free if you’re willing to listen to some commercials.  Wait a minute … that’s Radio!  Shelly Palmer

About Shelly Palmer

Shelly Palmer is a business advisor and technology consultant. He helps Fortune 500 companies with digital transformation, media and marketing. Named LinkedIn's Top Voice in Technology, he is the co-host of "Think About This with Shelly Palmer & Ross Martin." He covers tech and business for Good Day New York, writes a weekly column for Adweek, is a regular commentator on CNN and CNBC, and writes a popular daily business blog. Follow @shellypalmer or visit shellypalmer.com

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