Most people associate Yahoo!
Today, the company is launching its Yahoo! Music Unlimited plan, which will allow streaming and downloading of its catalog of major-label tracks at an introductory rate of just $6.99 a month -- or $60 annually for those who choose to prepay.
That sound of chattering teeth on brittle fingernails you're hearing is coming from Napster
Unlike Apple Computer
You shouldn't sell Yahoo! short on its chances here. In tying its offering to its Yahoo! Instant Messenger service, the company will be able to spread the word about the service virally as friends introduce new music to one another.
It also will have an easier time getting noticed than the competition, in large part because of its 300 million users worldwide. Yahoo!'s music site is already populated with hit music videos since joining Google
Are thrifty teens a bad target audience? Not really. Did you hear the one about parents being singled out litigiously when their children gave in to illegal music downloads? I know more than a few would be willing to pay $60 a year to keep junior honest.
That's why I like Yahoo!'s chances here.
Some recent digital music headlines in the key of C-sharp:
- Napster raised its revenue targets after seeing a surge in popularity of its Napster-To-Go service.
- RealNetworks turned in its first profitable quarter in years thanks to digital music.
- Yahoo! also had a great March quarter before it worked on its singing voice.
Talk about the company's latest moves in our Yahoo! discussion board.
Longtime Fool contributor Rick Munarriz plays various musical instruments -- including the calculator. He does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.