Yahoo to enter digital music space with iTunes-esque service
By Barb Dybwad 
posted Mar 10th 2005 8:30AM
posted Mar 10th 2005 8:30AM
When Yahoo bought Musicmatch for $160 million in September of last year, they had some big plans in mind that are now coming to fruition. They're about to launch an online music service that will combine the digital download pricing reminiscent of the iTunes Music Store with a subscription-based service similar to that of Napster. Yahoo is developing its own music player software that will be backed by MusicNet-provided downloads and subscriptions. Analysts who've been privy to a view of the Yahoo store are reporting that it looks not dissimilar in style, design and layout to Apple's iTunes Music Store. Ready the lawyers!
Yahoo is like the kid in highschool that plays every sport but sucks at all of them.
He may suck at all of them, but his Dad is rich enough to buy the equipment for the team. That is how he really gets on the team.
I will switch back to Musicmatch from iTunes if this shows up soon.
"sucks at all of them"???
Google profit margin: 12.52%
Apple profit margin: 5.20%
Yahoo profit margin: 23.49%
Google fiscal year net income: $399.12 million
Apple fiscal year net income: $508.00 million
Yahoo fiscal year net income: $839.55 million
I concede that the Google search is ten times better than Yahoo's or anyone else's for that matter. I don't buy any cds anymore and use ITunes exclusively for all of my music purchases. As much as I love iTunes, if Yahoo puts together a product that works just as good or better and pairs it with good quality music players, then why wouldn't I switch? Yahoo does a good job with product integration and marketing across their service sprectrum. This will be a real threat to Apple. Apple should've tried to partner with Yahoo from the start. As much as I like Apple, they have been in this position before and did not adjust to changing market conditions. Let's hope that they planned for this and have something amazing coming up.
"Let's hope that they planned for this and have something amazing coming up."
They do, it's called the fifth generation iPod.
Companies like Yahoo still don't get it. It's not just software, it's not just hardware, it's not just a store. It's everything together. So Yahoo's making a store, and they're making software, but has any non-Apple player even made a dent in the market to this point? For Yahoo to really do anything they'd have had to figure out a way to partner with *Apple*, not the other way around - to get iPods working with their service, which obviously ain't never gonna happen.
iTMS is not the only music store, but it's still the only one that matters. iTunes is not the only sync/catalog app, but it's the only one that matters. The iPod is not the only music player, but it's the only one that matters. The point being lots of companies (including big ones like Sony and Microsoft) have tried to defeat Apple in music using one or two approaches, but none of them have taken the combined, integrated approach that it's going to require and Yahoo isn't doing that either.
If you're going to defeat an entrenched, highly popular competitor, you need to do *at least* everything they're doing *and more*. You can't do *less* and expect to get anywhere. I don't know why this is so hard for these people to figure out.
Sony could do it if they put their mind to it. MS could too. Yahoo? Yahoo doesn't make hardware, so they're out. End of story. It doesn't matter if there are players out there that will support this; without an integrated experience that is *superior* to iTMS/iTunes/iPod (and costs less), there is NO REASON for anybody to switch.
Preach it Jeff!
It really is something that people don't understand I just got my first iPod, and, even though I would _never_ do this with anything else, I didn't even really look at other options. Why? the iPod, with iTunes and iTMS does everything I want and does it remarkably well. Creative or iRiver may have the nicer player (to be honest, I have no need for lots of the stuff they throw in there, like FM recording, etc), but they use Win Media Player or drag and drop as their method of updating.
I've said all along that if Creative really wants to beat the iPod they either:
- have to get Apple to stop making the iPod and support Creative's stuff (I don't know - you could kidnap Jobs, I suppose)
- have to create a seamless approach to the entire music management system. That means a high quality, easy to use media player. a Music store that integrates perfectly. and a player that just works.
Some people don't mind dragging and dropping to get their music on their device. I prefer the iTunes format of smart playlists and automatic updates. I just love it when things work, and that is something these other companies just don't get.
I love Yahoo!. I love how i can grab addresses from my address book to map direction on Yahoo! Maps. The integration on Yahoo is second to none. If they create a great app and a great store that integrates with everything else Yahoo!, they stand the best chance. Alas, without a solid music player to hang their hat on, I don't see it happening.
Nate
What makes people think Yahoo doesn't have some sort of branded, customized portable digital music player in the works?
"Yahoo is like the kid in highschool that plays every sport but sucks at all of them." I argree with this to a point. The reason why Yahoo is doing so well is that latly they have been very good at selling advertising, its not that they have a better product then the competition(I don't think any would say yahoo search is better then googles.). And jacob why on earth would you switch if it was just as good and go through all the hassle of buying a new player and converting your music files u already have, im sure for most other people it would have to be better not just as good for them to switch like other have said they really cant do that with out control over the hardware too.
I havent' heard it mentioned before but according to the following link, Yahoo plans to use the ATRAC3 format. At first glance this seems like a particularily odd choice of formats. Although a Yahoo/Sony partnership does make a lot of sense. Sony sucks at software and Yahoo doesn't do hardware.
So maybe Sony will distribute the new Yahoo music software and maybe Yahoo will sell a 'Y!' branded sony player (the new ones do look pretty sweet).
http://www.asahi.com/english/business/TKY200502220106.html
Yahoo! could pull this off. Problems?
1) Subscription-based services.
It's not exactly working for Napster just yet, and I don't think it'll catch on.
2) Using their own software player based on MusicMatch.
MM is clunky and horrible, last time I was on a PC (admittedly a long time ago) Unless they fix that, no dice. Why are plenty of Windows users hip to iTunes all of a sudden? (OT: what happened to WinAmp? Do people still use this? I know I liked it. That and Sonique... Those were the days.)
3) No player compromable to iPod.
Yet.... But this is also doubtful. I don't see many people buying Yahoo branded music players. Virgin, anyone?
They have plenty going for them, but these hurdles are going to be pretty tall as well.
And shoutout to the analysts: Screenshots! We want em!
I would like to point out that Napster raised revenue estimates not once but twice in the last quarter. I think it is fair to say that the subscription model is catching steam, even if Apple still retains a huge lead. But of course, Napster is gonna get just absolutely body slammed by this news. I personally love the model but think their software is crap. If, as several quotes seem to suggest, the media industry likes the subscription model they will have the power to price it very favorably.