Yahoo Music Unlimited

A new cheap music rental service: Yahoo Music Unlimited (about $5.00 a month).

This announcement apparently caused Real Networks stock to drop over 20% and Napster stock to drop 30%.

Since credit card fees are a big problem when you're paying only $0.79 for a burn (that's the additional price you pay in Yahoo's service to burn a song when you want to keep it instead of rent it) Yahoo might have an advantage - they have a Yahoo branded credit card. Maybe they could cut a deal with their credit card service (it's FirstUSA who was bought by BankOne who was bought by Chase) where music credit card fees are aggregated over the course of a month rather than a couple of days.

Wouldn't that be something.

© 2005 Stephen Clarke-Willson - All Rights Reserved