Mobile payment start-up Zong is extending its product to include subscription-based services, the company announced Tuesday.
Gaming site OMGPOP and News Corp.-owned photo-sharing site Photobucket have signed on as launch partners.
So here's what this means: instead of entering credit card billing information, subscribers to OMGPOP and Photobucket can bill their subscriptions directly to their phone bills by entering their cell phone numbers and then responding to a confirmation code. Previously, the Zong service could only be used for one-at-a-time micropayments rather than subscription-based services.
With Zong's new development, which is currently available only on U.S. carriers (and ideally international ones soon, the company said), it can process monthly subscription payments of up to $9.99. Bigger transactions are tougher because of the company's complicated relationships with cell phone carriers.
Opening up its mobile payments to subscription services may give Zong an advantage in its close rivalry with Boku, another start-up offering a very similar pay-by-mobile-number service. The two have taken slightly different approaches to carrier relations, which gave Boku a bigger global reach at its launch--and it's continued to grow fast.
Zong, meanwhile, says that more than 10 million unique users have used the service to process payments so far.
It's been a tumultuous few days for Yahoo--you know, with that takeover bid from Microsoft--but the company continues to shake things up internally, too.
On Monday, the company announced that it will discontinue its Yahoo Music Unlimited subscription service and will transfer its customers to RealNetworks' Rhapsody service.
In mid-2008, Yahoo Music Unlimited subscribers will be guided through an in-browser process to convert their music libraries to Rhapsody's service. For a limited time (length unknown), they'll be able to keep paying Yahoo's subscription fees, which cap out at $8.99 per month, before being required to start paying Rhapsody's $12.99 monthly fee.
Additionally, Yahoo announced in conjunction that it has acquired FoxyTunes, a browser plug-in that is compatible with multiple desktop and Web-based music players.
RealNetworks, which acquired Rhapsody when it purchased parent Listen.com for $36 million in 2003, has been partnering with both hardware manufacturers like TiVo and media companies like Viacom's MTV Networks. It's the company's best strategy for staying afloat in a digital music landscape that's not only dominated by Apple's iTunes but also seems to be gravitating toward "free," not subscription-based models.
But the announcement with Yahoo is shrouded in uncertainty, for obvious reasons. Just about anything could happen to Yahoo if Microsoft's proposed $44.6 billion acquisition goes through.
RealNetworks, ironically, has a hostile history with Microsoft, too, dating back to an antitrust scuffle several years ago that led to a partnership in which RealNetworks ultimately claimed it was shortchanged.
Rhapsody, the subscription music service owned by RealNetworks, has teamed up with music blog network and social networking site Mog.com to provide, well, music.
Through this partnership, songs mentioned on Mog's blogs are accompanied by a yellow "play" button that allows users to access the full-length streaming file through Rhapsody, which offers a total of about 4.5 million independent and major-label songs in its catalog. "We couldn't be more excited to have Rhapsody enabling music listening on MOG," Mog founder and CEO David Hyman said in a joint press release. "With today's release, MOG has put more key pieces in place towards its goal of building the ultimate online music community."
Rhapsody's full-length song playback is also now integrated into Mog's "Mog-o-Matic" downloadable music discovery software, creating playlists of recommended music based on what you play on your computer or portable music player. It's social, too--you can listen to not only your playlist, but also those created by members of your friends' list on Mog. In addition, Mog users can create custom playlists of Rhapsody songs, much like Imeem's streaming lineups.
New versions of Mog-o-Matic have been released in conjunction for both the Mac and Windows operating systems; the company touts them as faster, more efficient, and more stable. At the same time, Mog has souped up its music search feature, redesigned its artist and album pages, and tweaked its page layout.
But don't hold your breath--this Rhapsody-Mog deal isn't free. Mog members can access the Rhapsody streaming songs for a 14-day free trial, after which point they have to sign up for Rhapsody's subscription service ($12.99 per month) or a 25-songs-per-month deal.
Rhapsody's subscription-based music service has, thus far, proven unable to compete with Apple's ubiquitous iTunes. As a result, the RealNetworks-owned service has attempted to compete by forging partnerships across the digital-media landscape: an impending music store deal with MTV Networks and an appearance on TiVo set-top boxes, for example.
Unfortunately for Rhapsody, it still hasn't been able to create much of a dent in the iTunes arsenal. Nevertheless, the deals keep rolling in.
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