Monday, February 04, 2008

Yahoo Gets Out of Music Business

If you doubted that there was a tougher business to be in online than music subscriptions, believe now. Yahoo, though in a slump is still resource rich, decided to sell its digital music service to Real Networks.

Yahoo will get needed cash as it focuses more on.... not sure. Yahoo has the most popular music site on Earth, but it still couldn't make music subscriptions a lucrative business. Real Networks has tried the hardest, so this will enhance their chances.

But if I'm a Yahoo shareholder, this doesn't give me a lot of confidence in the management. Yahoo has tried being the multimedia company to differentiate itself from Google, but now it seems that they are giving up. All of that traffic can be worth much more if you can sell them stuff, so this puts more pressure on the ad side of the business.

Posted By John Gartner at 08:33 AM
Permanent Link: Yahoo Gets Out of Music Business | Comments (0)

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