updated 07:30 am EST, Tue March 23, 2004
Music services squeezed
The Wall Street Journal today takes a look at the as more and more companies join the fray. With heavyweights like Microsoft, Sony, and Yahoo! entering the market later this year, smaller players like MusicNow and Europe's OD2 have been left looking for potential suitors. Similarly, a music service initiative formed by Best Buy and Trans World Entertainment was shelved earlier this year as the companies try to figure out how to distinguish themselves. Most interestingly, the article notes that some Apple competitors have challenged the notion that profits are slim for download services, and say that margins tend to be much higher for subscriptions than for a-la-carte downloads. Apple does not offer a subscription service.