CREAM OF THE SUBSCRIPTION CROP
Jan 1, 2006 12:00 PM, C. Deane
In early 2005, the big players in the subscription space were few, Napster and RealNetworks' Rhapsody taking the lead. As the year progressed, it seemed as though a new player appeared each month: Yahoo launched its own service; AOL gained more of a presence with its record-breaking Live 8 event; and Microsoft teased all with launch dates filling the rumor mills. People who work in the space feel that it is a mere matter of time before Apple gets over its overall opposition to the subscription model and joins others in what many believe to be the preferred medium of choice in the future.
With so much competition among these large (and growing companies), 2006 will see two or three of the bigger players rising to the top, with search capabilities playing a big role in the outcome. As was recently demonstrated with the Microsoft-RealNetworks settlement of a lawsuit in which RealNetworks claimed that Microsoft had unlawfully bundled its media-player software, companies are acting on the realization that working together may be the only way to get ahead in the digital music world. In addition to a significant payout by Microsoft, the settlement included partnership components whereby the companies are combining their strengths for a more compelling user experience. Microsoft and Yahoo are clearly already onto this, and many suspect that Google, either via its own capabilities or a clever acquisition or partnership, is next in line. The idea is that the easier it is to find the music you love, the more you will consume.
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