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Yahoo's Music Unlimited gained a new manager - rival subscription service Rhapsody, which is operated by RealNetworks. The company also purchased media toolbar FoxyTunes.

Yahoo doesn't have much luck with music. Way back before the first dot-com bubble shattered, Yahoo made a billionaire out of Mark Cuban by purchasing Broadcast.com from him. That was $5.7 billion Yahoo could have spent building a music service.

Now they have outsourced management of Yahoo Music Unlimited to Rhapsody. Yahoo Music general manager Ian Rogers suggested on Yodel Anecdotal that Yahoo Music Unlimited wasn't such a great deal for the company:

Relatively speaking, a small percentage of those use Yahoo! Music Unlimited, yet an large portion of our resources were being poured into this service. It was clear to us that we needed to make a major strategic shift.

It wasn’t an easy decision.

If it cost more than it made, and wasn't proving itself as a loss leader to more lucrative services, we think that decision may have been a little easier than expressed. No one loses on-demand music, they just gain a new brand for that service.

"I’m sure a question many people are going to ask is if this means Yahoo! is backing away from online music. Au contraire," Rogers said in introduction to his other bit of news. Yahoo acquired FoxyTunes, a media toolbar for IE and Firefox.

"You’ll see support for additional media players, integration with many additional music sites and services," FoxyTunes said on their site in discussing what the acquisition means to them.