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Yahoo Doubling Music Prices

Yahoo Inc. is doubling the price of its online music subscription service for portable MP3 players. The increase ends a promotion aimed at luring consumers from Apple Computer Inc.`s leading iTunes store. Subscribing to the service on a monthly basis will cost $11.99, up from the initial pricing plan`s $6.99. Napster Inc. and RealNetworks Inc. each charge just under $15 per month.

Piper Jaffray analyst Gene Munster told news services that Yahoo`s low rental prices are not as successful because the service isn`t compatible with Apple`s iPod, "About 90 percent of the iTunes music store`s success has to do with the devices that it works with."

As of November 1, Yahoo will charge about $120 annually for access via download to more than 1 million songs that can then be transferred to portable players - up from its promotional price of just under $60 annually.