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Technology Stocks : Apple Inc.
AAPL 270.37-0.4%Oct 31 9:30 AM EDT

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To: William F. Wager, Jr. who wrote (46578)8/19/2005 1:44:36 PM
From: slacker711  Read Replies (2) of 213172
 
“An iTunes user could pay $500 to acquire 500 individual songs (buying whole albums is somewhat cheaper) over two years, and those songs are always hers and will always play. By contrast, a Yahoo user might download 500 rental songs over two years for just $120 in subscription fees, but the songs will become unplayable unless she pays hundreds or thousands more in subscription fees over many years, even if the fees rise.” [Aug 18, 2005]

Mossberg uses an absolutely terrible example.

Over the course of the two years, the Yahoo user will simultaneously have access to 1 million+ songs for a $120 AND be able to download (and own) any track they want for 79 cents a piece. So, if the user wants to own 500 songs it will cost $400 plus the $120 in subscription fees. At the end of the two years the user will have had access to Yahoo's entire database of songs for a net cost of $20. Seems like a great deal to me.

Slacker
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