Tue, 05 Feb 2008

Yahoo Music Shutting Down, Users Going to Real

Subscription services are dying on the vine, along with the DRM that made them possible. Here's a prediction: this time next year, we'll be finding out that Rhapsody is shutting down as well, despite the temporary influx of subs from Yahoo.

Tech.Luver sends in word of Yahoo's decision to exit the subscription music business. Yahoo's current subscribers — the company doesn't disclose how many it has — will be switched over to Real's Rhapsody service, and Yahoo will promote Real on its site. Yahoo had priced its subscription service significantly below Real's: $5.99 a month (if users pay a year in advance), vs. Rhapsody memberships at $12.99 a month and up. The Mercury News wonders how the Yahoo-Real deal would fare if Microsoft takes over — not well, the betting goes.

(link) [Slashdot]

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