Yahoo goes cheap on music


News.com reports that Yahoo has announced Yahoo Music Unlimited--another subscription service that also uses Microsoft's two-faced (Janus) DRM. The twist this time is that it costs $7 a month or $60 a year when paid in advance.

This price is less than half that charged by Napster and Real. However, Yahoo has said $7 per month is an introductory offer, though when it intends to raise prices is not yet known.

Editor's note: Although headlines around the web say, "Yahoo takes on iTunes," or something similar, I don't see this latest "me too" offering as competitive or having much affect on Apple. It's still the same-old "keep paying" business model--you don't own the music.

Moreover, Apple's addition of video and liner notes, as well as new country-specific stores, keep it well ahead of the competition by providing more value.

Yahoo's service will only further fragment the small portion of the market (30 percent or less) that Real and Napster are already losing money on.

What's your take?