updated 09:20 pm EDT, Tue May 24, 2005
Yahoo music price hike?
Steve Jobs is betting that on its online music service launched earlier this month. In early May, Yahoo! debuted a new subscription music service which starts at $60 per year for unlimited music service, which "rents" an unlimited number of songs to users as long as they pay their monthly subscription fee. According to The Wall Street Journal, Jobs said that Yahoo is charging "substantially" below its costs and will likely increase the price in the coming months. "Mr. Jobs then claimed Apple employees had a betting pool on when Yahoo would raise the $5-a-month rate, with Mr. Jobs putting his money on five months....Mr. Jobs proclaimed himself a solid believer in the 'halo effect' of iPod sales fueling Mac sales, pointing to strong growth in recent quarters. Asked when Apple would reach a 10% market share - up from the low single digits -- he said he didn't know. But he added that 'it's possible ... if people learn about our products, many of them choose them.'" [subscription required]