. . . Tuesday September 14, 2004

Yahoo Matches (and maybe passes) Music Competitors

For years, the folks over at Musicmatch were playing hard to get. During the first boom and right through the iTunes explosion, plenty of major players were looking to sink their teeth in this downloadable app. As an indie, MusicMatch managed to build a massive following and to build the leading music app for Windows users.

Now, Yahoo has finally made the deal and bought MusicMatch for about $160 million.

I wonder if the deal wouldn’t have been for a whole lot more if MM had tried to sell before iTunes created their own Windows-ready version.

Anyway, this is a good move for Yahoo. They may not be in iTunes’s league, but they can compete with MSN with an already superior product. They can have persistent placement on the desktop. They can merge MM with their Launch music videos. And they further differentiate themselves from Google.

Concentration is important!