Could IM Save Music?

Cnet.com and other online watchers are reporting that Yahoo, Microsoft and others are planning to use their online chat software to help push music downloads and compete with iTunes. But they are not just planning to use the IM ad space to push songs. They going to be imbedding new technologies that would allow those using IM to also share playlists, listen together, and then instantly buy a tune.

At a press conference last month, MSN’s corporate vice president Yusuf Mehdi specifically described a scenario in which two IM chatters could listen to each other’s playlists and then buy the songs if they wanted too. With last week’s acquisition by Yahoo of Musicmatch as well as Yahoo’s plans to launch their own music service, Net watchers are now speculating that Yahoo has similar plans.

These plans are a viral marketer’s dream as word of mouth on a hot new band or tune can spread globally among like minded friends and associates in a matter of hours. And while we’re certain that enterprising labels will find some way to exploit this, it really does potentially put more power back in the hands of the people to discover new music.