|
|
|
|
| ANALYST LOG |
| |
| AUG 18, 2003 - MUSIC SUBSCRIPTION SERVICES GET SERIOUS. |
| |
| The progress of Rhapsody, the leading music subscription service, continues to impress. Now part of the RealNetworks empire, the firm today annouced a marketing agreement with Best Buy, one the largest CD retailers in the US. Under the agreement, Best Buy will offer 14-day free trials of the Rhapsody service to the millions of consumers who visit Best Buy stores nationwide. |
| |
| This agreement is confirmation that subscription services offer enough music to be mainstream consumer products. Back in the dark days of April 2002, Redshift Research found Rhapsody offered only 14% of the Billboard top albums, leaving the service struggling to be taken seriously. But, by June 2003, this ratio had improved to 51% -- still not perfect, but certainly enough to interest consumers. |
| |
| This improved catalog has already given Rhapsody some success. In June, the firm claimed to have delivered 11 million on-demand tracks to its users, far more than the 2.8 million tracks sold through Apple's iTunes Music Store. Based on Rhapsody's usage figures, Redshift Research estimates the service has 40,000 users, a figure that includes those on a free trial. |
| |
| Now, helped by the marketing power of Best Buy, Rhapsody's subsriber base is likely to rise quickly. This, in turn, will make big-name artists sit up and take notice, with The Rolling Stones already signing up to distribute music exclusively through the service. With further big improvements in the firm's music catalog likely, RealNetworks Rhapsody has the power to become one of the dominant players in the online music market. |
| |
|
|
