Monday's Music 2.0 Briefing: Yahoo Drops Subs, Real Cuts Staff, Italy Legalizes P2P & Much More
A Guide To The Music Industry In China - Part 3 Media & Marketing

Yahoo! Taps Rhapsody For Subscriptions, Buys FoxyTunes

Alongside a back drop of Microsoft's aggressive buy out offer and the layoffs of hundreds of staffers, Yahoo! has decided to get out of the subscription music business and tap the Real MTV partnership Rhapsody America to absorb its subscribers.  The announcement also said the two companies would be collaborating on "other digital music services such a music downloads", but did not provide details.

I predicted consolidation in the less than popular digital music space, but Yahoo!'s move is also part of a larger shift that moves the portal away from content creation to focus on delivery via a more open platform. "This agreement allows Yahoo! to continue its focus on being the Internet’s leading starting point by creating an indispensable music experience that will drive music fans to Yahoo! first on their path to music discovery,” said Scott Moore, SVP and Head of Media at Yahoo!.

Rhapsody To satisfy the broadest possible audience in the shifting sands of the internet, Yahoo! is opening its doors to content creators and putting its own efforts into improving the user experience. For Rhapsody, a former competitor is now an important source of new and future customers.    


The Rhapsody partnership coincides with an announcement by Yahoo! that it has acquired FoxyTunes, developer of a tool-bar plug-in that enables users to control...

more than 30 desktop and Web-based music players. FoxyTunes also allows users to easily find lyrics, videos and bios and based on what is currently playing in a user’s media player.  By giving Yahoo! users an easy and agnostic tool with which to control and play music, FoxyTunes’ functionality across multiple music sources and services also furthers Yahoo!’s goal to be more open.

Another new application, Blog Remix comes from Yahoo!'s Media Innovation Group and enables fans to remix their favorite MP3 blogs. "Spend a couple hours immersed in the world of music blogs, saving your favorite posts and building up your own personal mix along the way. When you're done, you can save the result for future reference or export it as a playlist, podcast, or feed (RSS or Atom) to share with your friends."

What do you think of Yahoo's new direction?