Major Labels

Will Yahoo Set Off A Long Overdue Digital Music Price War?

Yahoomusiclogos_1Digital Music News reports that "Yahoo made a big statement last week with the beta launch of its Music Unlimited subscription and download service, with monthly fees falling below $5. While it is unclear whether those pricing levels will continue after the beta period, Yahoo has considerable advertising revenues to support such a low pricing scheme."

"Will that prompt a price war among leading digital music stores? RealNetworks was quick to squash the possibility, hoping to avoid another money-losing grab for customers…While RealNetworks may be holding its ground, MSN Music has already taken price-slashing steps. In a recent note to registered users, MSN offered 5 free songs to anyone downloading a 99-cent track. The offer is available until July 10th, though future price promotions could be in the wings."

Share on: