"We've now established the ABC, NBC, CBS, and Fox of music distribution," said Webnoize analyst Ric Dube. "Now we may have room for more niche oriented music and startups that better be skilled at targeting specific markets. Otherwise, the era of the startup is over." Yahoo doubled its size and gave the company access to Launchcast, which is browser-based music player along with 7,000 video music news by integrating Launch Media into its existing music properties.
According to Ellen Siminoff, Yahoo's senior vice president of entertainment and small business Yahoo's music sites draw only 6 million visitors.
Yahoo must now plan to move forward with its music service taking on bigger players already established then selves in the digital music arena. These big players include Napster, RealNetworks, and America Online.
"We'll do everything we can to integrate Launch throughout the network, and combine our current products together to offer great content to our users," Siminoff said. "We think Launch Media helps bring our overall strategy together."
Yahoo plans to offer is music subscription service through PressPlay. PressPlay will be offering songs through Sony Music and Universal Music Group. Yahoo will compete with AOL, Napster and RealNetwork who are expected to be offering music from EMI, Warner Music, and BMG. Yahoo is expected to inherit the only player with personalized services that isn't being challenged by the recording industry.
“In May, the Recording Industry Association of America sued Launch Media over its Launchcast service. That suit claimed the webcasters violated federal copyright law by offering streaming music services that allowed consumers to skip through songs and choose what types of music they preferred to hear. “ “On Thursday, Launch Media settled its dispute with the Universal Music Group, signing a license that grants it the ability to continue is service. The company also has a deal with Warner Music.” “The RIAA is currently in a court battle with MusicMatch and MTVi over similar issues, although neither company has reached a settlement.”
It is believed that small companies will not be able to afford the licensing fees required to offer major label music, without the ability to develop advertising-based and subscription service. Plus the belief that the major labels and music publishers will offer a limited number of licenses for premium delivery services, suggests that the major music distributors are now in place.
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