Yahoo takes on iTunes with new music service

(continued from previous page)

Mediacode in December 2003. It later spent $160 million to purchase Musicmatch, one of the most well-established MP3 software companies, which also offers its own 99-cent download store and a monthly subscription service.

More recently, sources said Yahoo is developing its own audio search engine aimed at finding downloadable songs and music data around the Net.

"People are much more likely to react and be receptive to music recommendations that come from friends and contacts."

--Mike McGuire, analyst, GartnerG2

Despite the string of purchases, the company has been working to build its own subscription service, along with wholesaler MusicNet. That service, dubbed Yahoo Music Unlimited, is slated to launch this week.

Like the recent entries from Napster and RealNetworks, Yahoo's service will be based in part on Microsoft's Janus technology, which allows music accessed using monthly subscription plans to be transferred onto some compatible MP3 players. Those songs will not work with Apple's iPod, which does not support Microsoft's technology.

The service will also be tied into the Yahoo Messenger service, allowing subscribers to chat and share playlists with each other while they're on the computer. Some elements of the service may be aimed particularly at teenagers, who avidly use online social tools to explore new music, with a pitch to parents indicating that Yahoo Music is a safe, legal way to share music, sources familiar with the project said.

"We are committed to being at the forefront of the rapidly growing online music segment," Lloyd Braun, head of the Yahoo Media Group, said in a statement. "Yahoo Music Unlimited draws on the best of Yahoo to provide personalization and community features unlike anything else in the marketplace."

Other subscription services also have moved toward community tools, though without the built-in base of the Yahoo audience. Napster allows subscribers to browse each other's playlists, while RealNetworks has integrated playlist blogging tools into its Rhapsody service. Yahoo's own Musicmatch offers a "send to a friend" feature, which lets even nonsubscribers listen temporarily to songs on shared playlists.

Analysts say Yahoo has the potential to make a splash in the market, particularly if it uses the instant messaging link to full advantage. It will face the same hurdle as its predecessors in explaining monthly subscriptions to customers largely familiar with iTunes' 99-cent downloads, however.

"People are much more likely to react and be receptive to music recommendations that come from friends and contacts," said GartnerG2 analyst Mike McGuire, cautioning that he had not seen the service. "But in the end it's going to come down to the offering, and whether they can create that compelling marketing message that explains why paying for access is better than paying for downloads."

bad idea...

unless yahoo can get some serious content that distinguishes it from itunes, this is a loss maker. does anyone remember that wal-mart also has an online store? and yahoo is making a classic mistake - it's competing on price, not content.

the device drives the sales! who cares if yahoo has 300 million users - if they all have ipods, they'll go to itunes first.

bad idea...

unless yahoo can get some serious content that distinguishes it from itunes, this is a loss maker. does anyone remember that wal-mart also has an online store? and yahoo is making a classic mistake - it's competing on price, not content.

the device drives the sales! who cares if yahoo has 300 million users - if they all have ipods, they'll go to itunes first.

[behemot]

Many bugs, definitely beta!

The app didn't pass first run test (crashed after install). It is much slower than Napster.
I was also signed out of the service when I signed on to Yahoo Messenger with the same user name. I thought they were supposed to be integrated, not exclusive.

oh, and where's the equalizer????

[behemot]

Many bugs, definitely beta!

The app didn't pass first run test (crashed after install). It is much slower than Napster.
I was also signed out of the service when I signed on to Yahoo Messenger with the same user name. I thought they were supposed to be integrated, not exclusive.

oh, and where's the equalizer????

[damiandennison]

I am still waiting...

I support the idea, why spend so much money for music match and not make it be the heart of the system? I tested napsters subscription service and did not like the fact that I can not listen to all the songs that they have. I still had to buy music, I thought the idea was to have access to every last piece music. That was not the case so I canceled the service. I then looked in to Reals subscription server and it was the same. I will check this one too and if not then I know they will not have my money. I want all not some. Music Match is a very good music manager, why not use it? That is what I use to manage my music.

[damiandennison]

I am still waiting...

I support the idea, why spend so much money for music match and not make it be the heart of the system? I tested napsters subscription service and did not like the fact that I can not listen to all the songs that they have. I still had to buy music, I thought the idea was to have access to every last piece music. That was not the case so I canceled the service. I then looked in to Reals subscription server and it was the same. I will check this one too and if not then I know they will not have my money. I want all not some. Music Match is a very good music manager, why not use it? That is what I use to manage my music.

[Terry Murphy]

Nobody gets it..still

There is a quote from Mr. Goldberg that was reported on AP but
missing from this article. Here it is: "WE are convinced this is the
way YOU should be listening to YOUR music."

Anyone, particularly musicians and music consumers, should be
aghast at this statement. Yahoo's substitution of smug self
indulgence over genuine consumer interests aside, once again
we have yet another edition of nothing more than the proverbial
technology cart preceding the horse.

Of course, the so-called analysts are falling over themselves
with praise for this type of service, as they have in the past for
all of the other on-line music store failures. So I suppose its
fitting for a little reality check at this point and here it is: Music
is NOT a "rentable" commodity. It never has been, and it never
will be. Period. If you listen to music, you know why. If you don't,
you probably work for Microsoft.

So instead of simply dressing up Microsoft's same old
technology garbage in a brand new suit once again, wake me up
when someone comes up with a real alternative to what Apple
has established for on-line music sales. If the word
"subscription" is mentioned anywhere in the business plan, then
its worth reminding that the subscription model emperor still
has no clothes. For what should be obvious reasons, It never did,
and it never will, despite the spin from the new generation of
quick buck artists.

More than subscription

While Yahoo does have a subscription element, you can still buy burnable tracks at the $.99 price point (like iTunes), or even $.79 if you subscribe (veru unlike iTunes). As a subscriber I can sample and even hang out with the full track on my Zen Micro before I buy it for $.20 less than the $.99 iTunes tracks, then burn the discounted track to a disc for my girl. I am finding everything that I need. Sure they may not have "the most obscure band in the world" in the subscription service, but they have everything I have needed so far. If you ask me, the market leading Apple may want to get with the times.

[Terry Murphy]

Nobody gets it..still

There is a quote from Mr. Goldberg that was reported on AP but
missing from this article. Here it is: "WE are convinced this is the
way YOU should be listening to YOUR music."

Anyone, particularly musicians and music consumers, should be
aghast at this statement. Yahoo's substitution of smug self
indulgence over genuine consumer interests aside, once again
we have yet another edition of nothing more than the proverbial
technology cart preceding the horse.

Of course, the so-called analysts are falling over themselves
with praise for this type of service, as they have in the past for
all of the other on-line music store failures. So I suppose its
fitting for a little reality check at this point and here it is: Music
is NOT a "rentable" commodity. It never has been, and it never
will be. Period. If you listen to music, you know why. If you don't,
you probably work for Microsoft.

So instead of simply dressing up Microsoft's same old
technology garbage in a brand new suit once again, wake me up
when someone comes up with a real alternative to what Apple
has established for on-line music sales. If the word
"subscription" is mentioned anywhere in the business plan, then
its worth reminding that the subscription model emperor still
has no clothes. For what should be obvious reasons, It never did,
and it never will, despite the spin from the new generation of
quick buck artists.

More than subscription

While Yahoo does have a subscription element, you can still buy burnable tracks at the $.99 price point (like iTunes), or even $.79 if you subscribe (veru unlike iTunes). As a subscriber I can sample and even hang out with the full track on my Zen Micro before I buy it for $.20 less than the $.99 iTunes tracks, then burn the discounted track to a disc for my girl. I am finding everything that I need. Sure they may not have "the most obscure band in the world" in the subscription service, but they have everything I have needed so far. If you ask me, the market leading Apple may want to get with the times.

More than subscription

While Yahoo does have a subscription element, you can still buy burnable tracks at the $.99 price point (like iTunes), or even $.79 if you subscribe (very unlike iTunes). As a subscriber I can sample and even hang out with the full track on my Zen Micro before I buy it for $.20 less than the $.99 iTunes tracks, then I can burn the discounted track to a disc for my girl. I am finding everything that I need. Sure they may not have "the most obscure band in the world" in the subscription service, but they have everything I have needed so far. Until all of the labels get with the program, there are always going to be bands that you can't listen to in any of the services. Even Apple falls short when it comes to a little band called The Beatles. If you ask me, the market-leading Apple may want to get with the times (as well as the labels that are not licensing their music to these services).

More than subscription

While Yahoo does have a subscription element, you can still buy burnable tracks at the $.99 price point (like iTunes), or even $.79 if you subscribe (very unlike iTunes). As a subscriber I can sample and even hang out with the full track on my Zen Micro before I buy it for $.20 less than the $.99 iTunes tracks, then I can burn the discounted track to a disc for my girl. I am finding everything that I need. Sure they may not have "the most obscure band in the world" in the subscription service, but they have everything I have needed so far. Until all of the labels get with the program, there are always going to be bands that you can't listen to in any of the services. Even Apple falls short when it comes to a little band called The Beatles. If you ask me, the market-leading Apple may want to get with the times (as well as the labels that are not licensing their music to these services).

[irogers]

Confessions of a Y! Music Engine Engineer

For some of the human aspects behind this product, feel free to visit my weblog. I was on the team that built this product.

<a class="jive-link-external" href="http://blog.360.yahoo.com/blog-FDuiCSg4eqinB8z.GGJ7TmAz?p=89" target="_newWindow">http://blog.360.yahoo.com/blog-FDuiCSg4eqinB8z.GGJ7TmAz?p=89</a>

ian

[Terry Murphy]

Confessions?

Thanks for the c:\yahoo\company\blog\spam.doc Mr. "Enginner"
lol

[irogers]

Confessions of a Y! Music Engine Engineer

For some of the human aspects behind this product, feel free to visit my weblog. I was on the team that built this product.

<a class="jive-link-external" href="http://blog.360.yahoo.com/blog-FDuiCSg4eqinB8z.GGJ7TmAz?p=89" target="_newWindow">http://blog.360.yahoo.com/blog-FDuiCSg4eqinB8z.GGJ7TmAz?p=89</a>

ian

[Terry Murphy]

Confessions?

Thanks for the c:\yahoo\company\blog\spam.doc Mr. "Enginner"
lol

[rpms]

What's uncool is that only annointed people can comment on the blog

When I tried to post a question, I got:

"You must be a member of Yahoo! 360° to comment on this blog entry."

When I tried to join, I got:

"Thank you for your interest in Yahoo! 360°. Currently, you must receive an invitation in order to use this service."

Despite the sincerity of the blog, I fear that this product launch is hype.

For example, I prefer Sony MP3 players*. The Yahoo! Music Unlimited splash page claims, "Yahoo! Music Unlimited songs can be transferred to Plays-for-Sure subscription-compatible devices including Zen, Rio, SONY, Phillips, Dell and others". When I click "Play-for-sure devices" and do "Show All Devices", I get a list of mediocre* players from Creative and RCA. [http://It bugs me that I also have to add playsforsure.com to my Trusted Sites zone in Internet Explorer. The site requires cookies, JavaScript, and other intrusive crap just to display a list of MP3 players.|http://It bugs me that I also have to add playsforsure.com to my Trusted Sites zone in Internet Explorer. The site requires cookies, JavaScript, and other intrusive crap just to display a list of MP3 players.]

I wanted to discover the truth about player compatibility by asking an expert via the blog, but I can't. Oh well!

Paul Marcelin-Sampson
Santa Cruz, California

* Please, no flames: My 1 GB Sony NW-E99 gets 70 hours of play on one AAA battery when playing ATRAC3 files, or 50 hours when playing standard MP3 files. Creative, RCA, and other competitors don't come close. And I can supply my own AAA rechargeable or, in a pinch, pop in a battery from the corner store. Try that with any iPod!

[rpms]

What's uncool is that only annointed people can comment on the blog

When I tried to post a question, I got:

"You must be a member of Yahoo! 360° to comment on this blog entry."

When I tried to join, I got:

"Thank you for your interest in Yahoo! 360°. Currently, you must receive an invitation in order to use this service."

Despite the sincerity of the blog, I fear that this product launch is hype.

For example, I prefer Sony MP3 players*. The Yahoo! Music Unlimited splash page claims, "Yahoo! Music Unlimited songs can be transferred to Plays-for-Sure subscription-compatible devices including Zen, Rio, SONY, Phillips, Dell and others". When I click "Play-for-sure devices" and do "Show All Devices", I get a list of mediocre* players from Creative and RCA. [http://It bugs me that I also have to add playsforsure.com to my Trusted Sites zone in Internet Explorer. The site requires cookies, JavaScript, and other intrusive crap just to display a list of MP3 players.|http://It bugs me that I also have to add playsforsure.com to my Trusted Sites zone in Internet Explorer. The site requires cookies, JavaScript, and other intrusive crap just to display a list of MP3 players.]

I wanted to discover the truth about player compatibility by asking an expert via the blog, but I can't. Oh well!

Paul Marcelin-Sampson
Santa Cruz, California

* Please, no flames: My 1 GB Sony NW-E99 gets 70 hours of play on one AAA battery when playing ATRAC3 files, or 50 hours when playing standard MP3 files. Creative, RCA, and other competitors don't come close. And I can supply my own AAA rechargeable or, in a pinch, pop in a battery from the corner store. Try that with any iPod!