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October 27, 2005
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Posted by Sandy
AP reports that Yahoo plans to increase the price of its music rental service to $11.99 per month.
Piper Jaffray analyst Gene Munster said Yahoo's low rental prices didn't impress most consumers because the service isn't compatible with Apple's iPod--which boasts about 75 percent of the market for portable players.
"About 90 percent of the (iTunes) music store's success has to do with the devices that it works with," Munster said.
No word yet on whether the introductory pricing brought Yahoo a host of loyal customers.
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