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Yahoo! to have \"modest near-term impact\" on Apple

updated 04:45 pm EDT, Thu May 12, 2005

Yahoo impact

Banc of America Securities today said the launch of a new paid music download service from Yahoo! will "have very . Banc of America slightly lowered the target price on Apple (to $44 from $47.50) "to acknowledge the risk of increased competition in the MP3 market, with a focus on 2006." The tight integration between iTunes and Apple's hardware has had a "protective effect," according to the report, with a strong connection between iPod and iTunes sales. If the subscription model proves to be popular, the firm said it expects Apple to counter and match with a subscription model of its own, echoing comments made by PiperJaffray.




by MacNN Staff

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Comments

  1. benhur

    Joined: Dec 1969

    0

    should get interesting

    I didn't think Apple would explore a subscription service unless it had to. Now it has to. If the Yahoo service worked on a mac I'd do it right now. It's a very well priced service and if you still wanted to buy your songs you could. Kudos to yahoo for being so bold. Your move Apple.

  1. mugwump

    Joined: Dec 1969

    0

    huh?

    Apple has never claimed any profit from the online music store. Why they have a lowered forecast if people are looking at other music stores is beyond me. You may as well say that there are rival mp3 software as well that could hurt iTunes domination.

    The iTunes store, software, and iPod is where it's at, and it's not about any of them individually.

  1. klinux

    Joined: Dec 1969

    0

    Sigh

    "Why they have a lowered forecast if people are looking at other music stores is beyond me."

    Geez, the article explained it!

    If people tried and liked Yahoo! Music and they will want a digital audio player that works with it and which means no iPod. However, Apple's excellent hardware and integration will ameliorate such a move if it happpens hence the modest impact and small change in target price.

  1. olePigeon

    Joined: Dec 1969

    0

    Why do they call it...

    Sorry, but if I pay for something I want to own it. I also don't want DRM crippled Windows Media Files that can carry trojans and viruses inside the container.

  1. jhorvatic

    Joined: Dec 1969

    0

    I don't want to rent

    I aggree with the last post. I don't want to rent my music I want to own it. Besides Apple is still the only online music store that offers music to both Mac and PC's. Yahoo is just another Roxio,Napster,Rhapsody,Microsoft store. Pay over and over and over for the music you could have bought outright once at iTunes and use the best player on the market to boot.

  1. kw99

    Joined: Dec 1969

    0

    Nonsense...

    iTunes Music Store sales has little impact on Apple's earnings (maybe more on overall revenue, but not earnings). The only way this Yahoo offering can impact Apple financially is if it makes people buy a non-iPod device, just so they can use the Yahoo service. If Napster and Real did not significantly impact Apple and iPod sales, why would another player (in that already small subscription piece of the music download pie)?

    The only reason Apple would consider offering a subscription music service is if iPod sales are impacted. If not, Apple is not going to do it. Apple should focus on making the best music players in the world, and the iTune Music Store will toast the so-called "competition."

    If there is impact on iPod sales, then Apple offers its iPod-only subscription service, and the rest of the subscription players are truly dead meat.

  1. klinux

    Joined: Dec 1969

    0

    Agree with olepigeon

    Agreeing with OP is not a smart move. Why is that? Let's break down his argumentm shall we?

    "Sorry, but if I pay for something I want to own it."

    Have you ever rented an apartment? Leased a car? Paid for cable/satellite? Has it ever occurred to you that you are paying for a service? Like a right to access a catalog of a million songs? Did you not read that you can burn tracks too? What is so sacrilege about say, owning a 1984 Def Leppard cassettee, so make you want to own it?

    "I also don't want DRM crippled Windows Media Files that can carry trojans and viruses inside the container."

    But DRM crippled AAC file is OK? Have you considered maybe others are forced to go with WMA because Apple will not license FairPlay?

    In addition, there is no documented case of a commerically DRM'ed WMA/V file carrying trojans or virus. Sure, while a WMA/V files can be malformed and trigger buffer overflow but so can Quicktime as well. In either case, they have been found in lab settings rather than being in the wild.

    Lastly, no one is forcing you to rent music. But posting everytime this issued is raised with "But I don't want it rent and I don't understand why blah blah' is getting kind of lame.

  1. benhur

    Joined: Dec 1969

    0

    re: don't want to rent

    Did you even read the article? Yahoo offers both rent and buying. In fact if you are a subscriber, then buying tracks is cheaper.

    I like the mixed offering. You mention paying over and over for music. How about paying to listen to the same song over and over.

    I see both sides and I think there is room for both. I like that Yahoo is diving in and trying it, hopefully getting Apple to do the same.

    I like browsing and listening to new music and songs that I wouldn't have before because I'd have to buy it to listen to it. If I like it that much, I'll go ahead and buy it.

    Just wished it worked on an iPod, an FM tuner iPod for that matter.

  1. mugwump

    Joined: Dec 1969

    0

    what's best for revenue

    Wouldn't Apple offer the services that maximize revenues? I think they already are doing just that.

    If they offered a subscription service, they have determined that it would undermine song sales, to the extent that it would remove any thin profits from the music store.

    But at some point if the equilibrium tilts away from the current method, then I'm sure they will follow it.

  1. LouZer

    Joined: Dec 1969

    0

    Woohoo!

    Its time for the "But I don't want to rent music, I want to buy it" posters to come out and bore us with their preachiness. So come on guys, get to it!

    And I mean, I agree with you all. I spend $45 a month on my cell phone bill, and I think I should get calling for life, because I paid for it!

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