Thursday, May 12, 2005

Yahoo's Music Rivals Sing the Blues

Yahoo's Music Rivals Sing the Blues: "Q: How does Yahoo's entry affect the digital music market?
A: The headline everyone is talking about today is that Yahoo is now going to become a formidable competitor to say, Apple, which has its iTunes service and the iPod MP3 service. But the first thing is that there are two segments right now in online music: Pay-per-download, like Apple's iTunes, and subscription services, like what Yahoo is about to offer. The reality is that they are moving into a different segment in online music than Apple. It's one that is occupied primarily by two other players, Napster and RealNetworks with its Rhapsody service. Those two are going to be much more seriously affected.
I think the market is reacting to uncertainty over whether there will be less robust growth of MP3 sales for Apple in the future with this new entrant. This isn't any new entrant. Yahoo is the proprietor of the most visited Web site in the country."

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