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August 18, 2005

Yahoo's Music Stays at $5; Big Ad Campaign

Reuters: Yahoo's music subscription service, Yahoo Unlimited, which was launched in beta in May for a promotion price of $5 per month, will stay at that price when it is formally launched tomorrow. This keeps the service's price below competitors like RealNetworks and Napster (though I would venture to say that Rhapsody, at $24 a quarter, is still a far superior service).
When the service was launched, many analysts said that after the introductory period, the price would be increased. Anyway, I have it from reliable sources that the initial feedback and pickup from users is lower than company expectations, and some of the aggressive pricing decision may have stemmed from that.
With the full launch, Yahoo is launching a big TV ad campaign...The campaign debuts on August 28 during the MTV Video Music Awards with the tagline "Over A Million Songs - 5 Bucks A Month - This Is Huge." Commercials will air on MTV and Comedy Central. Yahoo has also planned ads in a new video game from Midway Games and other nontraditional campaign efforts.


-- Our Coverage: Yahoo Music Unlimited

-- Interview: Dave Goldberg, VP & GM, Yahoo Music -- Excerpts

Posted by Rafat Ali in Yahoo | Permalink


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I hope Yahoo does really well in this space as I'd like to see them get Apple off their butts and finally launch an iTunes subscription service.

I really don't understand what Apple is waiting for. Since they're main moneymaker is the iPod, a subscription service would definitely help to move more iPods.

Posted by: Cartel | Aug 18, 2005 12:11:38 PM

Rhapsody costs $26.97 paid quarterly, or at least that's what I'm charged.

Posted by: David Mitchell | Aug 20, 2005 11:46:06 AM

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