The High Cost of Selling Cheap Music Services
After writing about how Napster renegotiated its deals with record labels to offer its music subscription service at a lower price, I called RealNetworks (RNWK), which offers the Rhapsody service, to see if its executives were excited about cutting similar deals that would allow it to offer its own $5-a-month music service. For years, after all, people trying to popularize music subscriptions–which allow you to listen to anything you want for a monthly fee–have been telling me the concept is great but the price the record labels want is too high.
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