Yahoo today launched an early version of a new music service (rumors about which were circulating in March) in an effort to take on Apple's dominant iTunes and capture a good chunk of the online music market, writes CNET. The song-sharing and the community aspect of Yahoo's new subscription plan are key - and could change the market dynamics of the online music business, according to analysts.

The service is largely built around a monthly subscription plan similar to those of Napster and RealNetworks, allowing customers to take music onto portable devices. ButYahoo is undercutting rivals' prices, offering initial monthly subscriptions for $6.99, half of others'. Much will depend on marketing the service, and Yahoo has dedicated substantial resources to its music business.

Recently, it announced an audio search engine aimed at finding downloadable songs. Yahoo has also spent much effort linking to its other products, such as its popular instant messaging application, in an attempt to make community and legal music-sharing a core part of the service.