Internet powerhouse Yahoo! Inc. has launched a deeply discounted music service, betting that low prices and personalized features will lure customers away from the troves of free, but illicit, music online.
But don't rush to plug in your iPod. The service will not work with the popular music player from Apple Computer Inc.
With 176 million users, Sunnyvale, Calif.-based Internet portal Yahoo is the biggest player yet to enter the growing legitimate market for music online.
Yahoo is tuning into a market with big players, such as Apple's iTunes, Los Angeles-based Napster Inc.'s Napster to Go and Seattle-based RealNetworks Inc.'s Rhapsody.
"The big surprise was the price," said Phil Leigh, who follows the digital media industry for Inside Digital Media Inc. in Tampa, Fla. "If the technical performance of the service is satisfactory, I think it will put pressure on both Napster and RealNetworks to reduce their prices."
Yahoo Music Unlimited's most formidable competitor is Cupertino, Calif.-based Apple's iTunes Music Store, which sells downloadable songs for 99 cents that can be transferred directly to Apple's popular iPod digital players, which do not work with Yahoo's tunes.
"Frankly, we don't think people understand what a subscription service is today," said Dave Goldberg, general manager of Yahoo Music.
Music fans might not be willing to pay much to find out, he said, noting that free file sharing networks offer vast amounts of bootlegged songs.
"Our goal is to get people in, get people to understand the value of why they would bother subscribing," Goldberg said. "We believe there is a huge opportunity to get consumers to pay a little bit for music if it's a better experience than what they're getting when they're not paying for music."
"A little bit" means $ 6.99 a month, or $60 a year, for full access to Yahoo's collection. The service lets users transfer songs to certain portable devices and, for an additional 79 cents per track, burn permanent copies onto CDs.
Post new comment