Yahoo takes on iTunes with new music service

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This will change the non-iTunes market

Both Real and Napster are going to feel this in a major way.
Yahoo is financially strong and is going to be cutting the price of
subscription services in half. The big question is how Real and
Napster will respond - and can they afford to respond and
remain in the business.

As for iTunes, it will continue to rely on the iPod customer base,
which is rather large. Additions of video clips on some album
purchases is another step forward in defining the market for
music sales and it would take a long time for Yahoo to take over
this market. It does, however, add pressure on Apple to
introduce subscription services for the iPod - something I
believe they are prepared to do in terms of product
development.

As for the iPod user - from what I have read the average user
buys about 6 songs from the iTunes Store, relying on their CD
(and old LP) collection for the majority of their music.

Posted by: Ken_z   Posted on: 05/11/05 You are currently: a Guest | Members login | Terms of Use

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