Yahoo's Music Rivals Sing the Blues: "But while the music service's opening day was free for users, it cost its competitors dearly. RealNetworks (RNWK ) and Napster (NAPS ), two companies that offer similar music subscription services, saw their stock fall by 20% and 27%, respectively, by the close of trading the following day. Meanwhile, Apple (AAPL ), the leader in online music with its iTunes MP3 downloading service, saw shares drop by as much as 7% before finishing the day off almost 3%. "
I guess I'm glad I didn't follow my advice and load up on NAPS or RNWK. But the S&P analyst quoted above is missing the whole point of Napster, which is the "to-go" aspect. Yahoo! doesn't do that, and it's not clear they can do that any time soon. Right now I don't see anything in Yahoo! Music other than a cheaper version of Rhapsody--great if you're plugged into a high-speed Internet connection, but not otherwise.