Yahoo! has announced that it’s planning to stick to its current price point of US$4.99 for a month’s subscription to Yahoo! Music Unlimited. However, the company has not announced subscriber figures. Napster and Rhapsody, despite initial concerns, have continued to grow and are claiming that Yahoo! is bringing in new subscribers rather than pulling people away from them. Rhapsody has 1.1 million subscribers and Napster 400,000 – US figures as Napster hasn’t revealed UK subs and Rhapsody has yet to launch on our shores.

Both Napster and Rhapsody has publicly speculated that Yahoo! would retreat from the $5.99 price point, so their nervous wait will continue … What would be very interesting would be if Yahoo! expands the DMS’ reach into the UK, Japanese and European markets, all while maintaining that price.

Research into DMS and public perception of them has pointed very clearly to a lower price as being key but all the other subscription services have stuck to £15-20, which is roughly twice what the ‘average’ UK music buyer spends.