yep – Yahoo! hands its music business to Rhapsody
Posted by wholeenchilada on February 4, 2008
Yahoo! is preparing to dump its Yahoo! Music Unlimited service and replace it with a partnership with RealNetworks’ Rhapsody. A few weeks ago we reported on a rumor that Yahoo! was exploring the idea of launching a DRM-free music store to compete with Apple and Amazon. It looks like the company decided to go another direction.
Both Yahoo! Music Unlimited and Rhapsody allow users to access a large library of on-demand music for a subscription fee. But while Yahoo! has been charging $5.99 to $8.99 per month, Rhapsody charges $12.99 per month. Existing users will have their accounts automatically transferred to Rhapsody, with their music libraries intact. But when you’re contract runs out, you’ll be charged the higher rate.
I wonder how this all ties into the Yahoo! / Microsoft talks going on? Here’s some related reading: