Napster Pre-Paid Cards

G4Outcast writes "According to this CNN Money article, Napster will be offering pre-paid cards costing $14.85 at several retail locations. I guess the iTunes gift certificate and allowance idea is catching on."

Comments

Dumb question

[wrinkledshirt]

Are any of these ideas going to make it worth it to stop using Kazaa?

Re:Dumb question

[wrinkledshirt]

Well, the question wasn't for me, really.

I just think it's stupid for these companies to be trying to compete with each other when the REAL competition is Kazaa. That's what's going to be determining whether or not they can make a profit.

Re:Dumb question

[CrankyFool]

Sort of depends on what you're trying to do and what your priorities are, right?

I have an interest, but not an overwhelming interest, in downloading free music. My priorities, however, are:
A) Be able to reasonably use the music I get (download to my work system, my notebook, my home desktop; burn CDs; listen on my iPod) and not feel as though I have to go "God damn this DRM!"
B) Get the music I want without having it bundled with crap (requires the ability to purchase songs rather than just albums);
C) Get a single song for a decent price ($.99 is reasonable; $3.49 for a CD of a single isn't);
D) Be able to get the song I want;
E) Be able to get the song I want easily;
F) Be able to get the song I want quickly
G) Reasonable sound quality (which is important, but given that my ears don't seem to have a problem with 128Kbit MP3s isn't really an issue)

Based on these priorities, FOR ME ITMS is a really, really good match. I've not yet felt hampered by its DRM (though admittedly, the first thing I do is burn a CD of my protected AACs and rip it); its prices are reasonable; downloads are wicked-fast; and one of these days I'll be able to access it from work though our password SOCKS proxy. I hope. :)

Here's an example of what I have to go through right now:

I wanted to get ATB's "Let You Go" yesterday. The first thing I tried was ITMS, but they have no tracks by him; so then I tried Kazaa, where there were three copies of the song, but all downloads were stuck at 'searching for more sources.' Finally, after a thirty minute search on the net I was able to find the MP3. Would I have paid $.99 to get this song from ITMS? In a heartbeat.

And that's why Kazaa is -- again, for me -- a backup to ITMS for any music I *really* like. I still use it for music I essentially get because it's free and wouldn't pay for, but that's less important to me. If I could get all my music from ITMS and could get only porn from Kazaa, I'd still be a happy camper (though with a few less mp3s on my hard drive).

I assume...

[fejikso]

They've already made some analysis to conclude that there are enough users who are interested in buying that service and don't have a credit card.

I mean, making and distributing these cards so widely is not an easy or cheap business...

In my personal case, I do have a credit card, but I am not interested in the service (yet), so I don't give a damn :)

Amazing

[cubicledrone]

The sheer brilliance of iTunes continues to echo across the computer and entertainment industries.

Apple has proven what shareware authors have known for years: good service and convenience are more valuable than the data itself.

Now that there is a valid business model, everybody wants to be as cool as Apple.

Re:Amazing

[Phroggy]

Shouldn't they just make the default be to buy in "Shopping Cart" mode instead of one song at a time?

Instant gratification. With a shopping cart, you can change your mind before checking out, particularly when you see the total amount of money you're about to spend. $0.99 at a time doesn't seem like as much money, so you're more likely to buy more. At least that's what Apple is hoping.

Best Buy?

[techstar25]

Why would someone drive to Best Buy to get this pre-paid card, then drive home to download the songs? While you're at Best Buy why don't you just buy the CD? It would certainly be cheaper than $14.85. Is it to make a compilation?

Re:Best Buy?

[mblase]

While you're at Best Buy why don't you just buy the CD? It would certainly be cheaper than $14.85.

Because the card is good for any 15 singles you want, while the CD is good for one album with maybe one or two singles you want.

Clever

[mr_tommy]

A very clever marketting idea. It removes any consumer fear of using credit cards on the internet, and simplifies the process such that its as easy and as convenient as topping up your pay as you go phone.

Maybe this napster come back wont be a flop after all.

Re:coincedence?

[Anonymous Coward]

Being as the stock market is more down than up anymore

WTF? The DJIA is up over 2000 points since March.

Where's Napster's Suger?

[Doesn't_Comment_Code]

From all I've read, Apple makes very little from the selling of songs. iTunes DOES promote the iPod, which is a cash cow.

If the new (hechem.. fake) Napster is selling songs for about the same price, how are they going to make enough money to stay in business?

Re:Where's Napster's Suger?

[awkwardone]

I'm guessing that Apple pays such large royalties to the record labels because the labels are still hesitant about embracing the technology. It doesn't fit with their traditional business model of selling full albums. Perhaps they're charging so much for the specific purpose of making iTunes unprofitable, thereby killing the service and eliminating an alternative model.

iTunes is a win-win for the record companies: the RIAA collects high royalties now in order to try to cut into the store's profits, and then if the service succeeds, they could demand more. This might cause iTunes to raise prices, thereby driving away some price-conscious customers and cutting into its profits.

I love iTunes as much as anybody else, but don't think for one second that its success necessarily means that the RIAA likes it. They'd rather have you spend $15 on a crappy CD with two good songs than buy those two good songs for $2.

brand awareness

[andih8u]

Most people still identify napster with getting free if not illegal mp3s. I think trying to keep the name was a bad marketing idea. Most people won't be able to figure out why they should buy downloads to something they thought was free. Keep the technology, change the name.

Prepaid card show who the market is

[Squeebee]

Look at MMORPGS like Everquest. They offer pre-paid cards to tap into a very lucrative market: teens. These kids make money at part-time jobs (or receive it in allowances) and have no expenses, resulting in high levels of disposable income. Problem is teens usually lack credit cards. Without prepaid cards a lot of online services cannot tap into this market because if they can't pay cash they can't pay.

I think what we'll see next is a prepaid card that a lot of online retailers choose to accept. Oh wait, that's a check-card. Well, expect to see more teens with more check-cards in the future.

Why credit iTunes?

[OzPhIsH]

I guess the iTunes gift certificate and allowance idea is catching on.
Gift certificates have been around for as long as I can remember. It's only natural for places of commerce to offer gift certificates nowdays. Why this is being credited to iTunes is rediculous. If a poster had said "Microsoft's gift certificate idea" I would have read 100 posts about it by now. I'd say it's pretty likely that using a gift certificate/allowance would have happened with, or with out iTunes.

Interesting Marketing

[Goyuix]

iTunes is lacking in a brick-and-mortar placement. It might show up on a magazine cover or something, but by Napster having these cards at the checkout of a grocery store line, it opens up marketing potential (people just seeing it helps it be regonized) and also people tend to throw additional things in their cart while they wait to check out. Why do you think they have both sides of the checkout isle lined with various "convenience" items. It isn't uncommon to grab a pack of gum, candy bar, lighter - whatever.

Granted we are talking about ~1 dollar instead of ~15, but still this could definitely be a good business move for Napster.

Re:coincedence?

[Anonymous Coward]

Still down since 2000 if you want to talk long term.

Still up since 1973 if you want to talk longer term. What's your point? It ain't "more down than up" anymore. It's up almost 35% in less than a year.

Re:Are Mac Zealots

[the_2nd_coming]

no, they never said that...they just say Apple did it right.