Yahoo! Exits Music Subscription Biz

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Posted 07 Feb 2008 in technology

It sounds like a mighty tempting offer: pay a flat monthly fee to listen to all the music you want.Take your pick: rock, jazz, country, blues or classical. Individual songs or entire albums. From nearly every major recording artist you can think of.

And yet despite these features, online music subscription services have failed to connect with a mass audience, hampered by their incompatibility with the Apple (nasdaq: AAPL news people ) iPod and other usage restrictions.

Now Yahoo! (nasdaq: YHOO news people ) is becoming the latest player to exit the market.

Under a strategic partnership with Rhapsody America, Yahoo! will transfer all customers of its Yahoo! Music Unlimited subscription service to Rhapsody and market Rhapsody’s service on its Web site. The two sides said they also plan to cooperate in other digital music initiatives, including the sale of music downloads. They declined to say how many Yahoo! customers were being transferred to Rhapsody. READ MORE


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