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News
Yahoo Bails On Music Service, Moves to Rhapsody
Sunday, February 3rd, 2008 at 3:00 PM - by Jeff Gamet
Yahoo is closing down its online music rental service, Yahoo Music Unlimited, but current customers wont be left high and dry. Instead, Yahoo struck a deal with RealNetworks that transitions YMU subscribers to the Rhapsody music rental service.
The YMU shutdown and Rhapsody migration is expected to happen in the first half of 2008. YMU customers will be able to keep their current subscription libraries and payment plans for a limited time, but Yahoo and RealNetworks arent saying just how long that limited window will last -- which means that eventually YMU subscribers will either have to pay the higher rates that Rhapsody charges, or lose their rented music libraries.
While the Yahoo Music Unlimited shutdown will likely leave many disappointed subscribers in its wake, it doesnt hold the sting of the Sony Connect music rental shut down where customers were left with unplayable DRM-laden tracks.
This latest subscription service shutdown isnt likely to help bolster the record labels stance that music rental models are better than music purchase models like Apples iTunes Store. Until the labels can convince customers that they dont really want to own the music they listen to the ongoing start-up/merger/shut-down subscription music service cycle will continue unchecked.
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