Who Will Blink First: Yahoo or Apple?

The Wall Street Journal notes that both Yahoo and Apple are sitting and waiting for the other company to cave in on their respective music services, complete with internal company betting pools.

Steve Jobs, Apple’s chief executive, said Sunday there was a running bet inside his company about how soon Yahoo would raise their pricing.

[Yahoo co-founder] Mr. [Jerry] Yang conceded that the company described its initial price as “introductory,” while not specifying any potential change. He was quick to point out, however, that Yahoo also has a running bet about when Apple will start a subscription service in addition to selling individual song downloads.

Mr. Jobs also cast doubt on Yahoo Inc.’s announcement of a $60-per-year music subscription plan, saying that price point was “substantially” below Yahoo’s costs and would be raised. Mr. Jobs then claimed Apple employees had a betting pool on when Yahoo would raise the $5-a-month rate, with Mr. Jobs putting his money on five months.

If you’re smart, you’ll sign up for a year of Yahoo Music unlimited as soon as possible. Not only will you lock in the absurdly low price, you might encourage Yahoo that the price point is popular enough to keep.
(via Om Malik)

May 25, 2005 by Nathan Weinberg in:

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