How much does yahoo music cost?

Investment Cost of Launch a Music Download Service (i.e., itunes, napster, etc.)

  • I'm trying to find out what the initial, up-front, investment cost is to build a music download service (i.e., iTunes, Rhapsody, Napster, Yahoo Launch, etc.). I don't need an exact financial number off an analyst report but even a quote or estimate of how much investment is needed to build this (it would be nice to also get some idea of the on-going costs to run/operate this but I definitely need to know what the initial cost is to just launc)

  • Answer:

    Hi there, I found the information you are look for, related to iTunes and Napster. iTunes "Analysts have estimated that Apple spent about $35 million to $40 million to build the iTunes technology platform. " http://www.ciol.com/content/news/2003/103121602.asp As for operating iTunes, an article by TechNewsworld notes that Apple spent over $125 million to advertise the iPod and iTunes Music Store in 2002 http://www.macnn.com/news/22482 Napster Roxio's acquisition of Napster, Pressplay and its integration of these services, which resulted in the relaunch of Napster, cost the company over $65 million, according to public documents. Roxio acquired substantially all of the interests of pressplay. Roxio purchased its majority ownership for $12.5 million in cash and approximately 3.9 million shares of Roxio common stock. Based on Roxio?s closing stock price on May 16, 2003, the purchase price would be approximately $39.5 million excluding transaction costs estimated at approximately $1 million. www.pocket-lint.co.uk/news.php?newsId=6 Roxio also acquired Napster's intellectual property and technology patents for around $5.3 million in November 2002 www.thestandard.com/article.php?story=20040506205647555 The original Napster, however, was developed of boredom by a teenager to help his roommates find mp3 faster. He borrowed some seed money from his uncle and got incorporation papers. Months later, he received $2 million from angel investors and received millions thereafter. http://www.forbes.com/tool/html/00/apr/0420/feat.htm Since you are looking specifically for initial launch costs, I will post this now. I will, however, continue to look for additional operating costs for you. Best regards, Tox-ga Search strategy: Google search - combination of terms such as roxio, napster, rhapsody, real media, itunes, apple, invested, startup, spent, yahoo launch, music to yahoo ://www.google.ca/search?hl=en&ie=UTF-8&q=roxio+acquired+napster+million&meta= ://www.google.ca/search?q=napster+startup++million&hl=en&ie=UTF-8 ://www.google.ca/search?hl=en&ie=UTF-8&q=%22apple+spent%22+itunes&meta=

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