Yahoo’s Media Group Sucking Wind; Axe Falling

Yahoo says it is “streamlining” and “consolidating” its Santa Monica, Calif.-based media group; a more detailed announcement is planned for tomorrow. PaidContent and TechCrunch both predict that the company’s music group will be particularly hard hit. That’s what we hear, too!

“Vince [Broady, who oversees Entertainment and Media] is really doing badly,” a source tells us. “So they are making him cut headcount. He doesn’t care about music so he is cutting it there.” A side effect of the move: assuming Yahoo does knock out/scale back its premium business, that leaves just two major players — Napster (NAPS) and RealNetworks (RNWK) — pursuing the music subscription business.