Saturday, May 21, 2005 12:19:32 PM
Yahoo!'s doing the same exact thing w/ their new music offer that's really got (in the short term), Napster, Real Networks, et al scrambling. They're deeply undercutting them now, early in their roll-out to try and garner the customer base in hopes to keep them loyal in time. They know they're losing money but they got the cash on hand to handle it for a while. They'll raise rates, IMO, as soon as their cash position lowers to a point that they've already picked out.
Kinda like the boxing strategy of taking the hits (if you can) of a more formidable foe in hopes they tire themselves enough and let their guard down, then as soon as you see the openning - WAMMO! you nail 'em!
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