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).

Re:Dumb question

[public_class_name_ex]

You mean you don't enjoy the hidden software which installs itself and facilitates the targeting of advertisements at you while you browse the web? For me this not only alleviates the guilt of sharing files, but also helps me realise I really do need to order a tiny web cam sold by women in provocative clothing.

coincedence?

[Suppafly]

The Napster Card will cost $14.85, entitling the user to 15 downloads -- in line with prices of newer rivals -- and will be available at 14,000 locations in mid-November at such major retail chains as Best Buy (BBY: down $1.17 to $53.64, Research, Estimates), CompUSA, Safeway (SWY: down $0.35 to $21.16, Research, Estimates), Rite Aid (RAD: down $0.06 to $5.68, Research, Estimates) and Duane Reade (DRD: down $0.30 to $13.50, Research, Estimates).

It's kind of odd how the stock prices are down for every company that is planning on selling these pre-paid napster cards.

Re:coincedence?

[Trigun]

Being as the stock market is more down than up anymore, I'd say that yes, it is a coincidence.

Hopefully Christmas will make these stocks rebound. My portfolio could use a Christmas present.

The beginning of the end.

[Masque]

How long will it be until we see Howie Long and Hulk Hogan singing a duet about an online music service?

"A dollar! Why, you can get a song up to 20 minutes long for just NINETY-NINE cents! Just dial 10-10-NAP-STER!"

*bangs head on desk*

Here's the problem with these paid services.

[ahfoo]

I cranked up Kazaa yesterday to see what the numbers looked like. I saw 4.1 million.
Well, back when I used to check in more frequently a few months ago I rarely saw it that high. I tried some searches and it seems it's all more or less back where it was.
So, this shock and awe thing seems like a memory already. I mean what even happened to the first batch. As far as I can the majority settled for a few grand and then a whole bunch decided to fight. Well, where's the shock and awe in that? Obviously people are going to wait to see what happens in the courts. But in the mean time they're going to forget about it.
It would have been one thing if it started as a hundred suits followed by a thousand and then by ten thousand. That would have done something. But this 200 every two months is not all that shocking or awe worthy.
But of course that would also have provoked even more congressional attention. So either way they were fucked which is what evrybody said from the beginning and now it still seems to be true.

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.

Correct me if I'm wrong...

[Undaar]

...but shouldn't a gift certificate to steal things be free? :)

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.

Re:Best Buy?

[Trigun]

To make a compilation, or to give as a gift to your bratty nephew because you don't know what kind of heroin induced crap he's listening to this week.
Take your pick.

Re:Best Buy?

[Osty]

Why would someone drive to Best Buy to get this pre-paid card, then drive home to download the songs?

Because you want to use Napster but don't have a credit card? More likely these will be used as gifts, though.

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?

What are the chances you intend to buy every song on a CD? Instead, you'll probably buy 15 different songs from 15 different albums, like you suggested for compilations. However, CDs aren't cheaper than $14.85 anywhere I've been. Some are, but most CDs are marked at $15 and higher before tax, not $9.99. Even if you add the cost of blank media to burn your purchases, you're just starting to get to the after-tax cost of a CD.

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.

And in other news....

[batura]

Napster will be offering the public a new, improved failed business plan.

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?

[DrEldarion]

It's Napster! They don't HAVE to have a business plan to make money! (at least last time they didn't)

Re:Where's Napster's Suger?

[Johnny Mnemonic]

That's what the parent post said. So the question remains: how is Napster et al going to be profitable, since they don't have the margin of an "iPod alike" to take to the bank? Especially since they presumably have to pay MSFT for their encoding technology, also. And, they have to compete with every other WMA enabled $.99 download music site.

Well, it could be that a) MSFT is giving a discount on their encoding tech, to get it established in the marketplace; but wait until it gets established. Then MSFT will triple the prices, and what are you going to do? They've done this before. Or, b) it could be that Napster gets some kick from the portable music players. No question that digitized music helps sells players for said music, so maybe the top 5 manufacturers all pay Napster something back. Finally, c) it could be that Apple just isn't managing the iTMS revenues very well, so a more efficient company is able to actually make money on the music alone. I don't know what Apple's expenses are well enough to know if the cost of the iTMS is reducible or not; for instance, is it bandwidth cost? Server cost? Dunno.

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.

Oh, I don't know

[sbma44]

I don't know about Duane Reid stores, but all those others already sell prepaid cards of one form or another, so they presumably already have systems for distribution of these things. The cards probably won't even be plastic, just a fold-out piece of paper with a one-time use code printed on them. My guess is that production costs are at most a few cents per card.

I wouldn't be surprised if this is actually a more efficient way of selling their merchandise, since they don't have to give a cut of every transaction to the credit card companies.

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.

Re:Prepaid card show who the market is

[ghjm]

Yep, it's called the Visa BUXX card. It's been around for about three or four years now.

-Graham

Requirements

[big_groo]

System Requirements PC only, Windows XP/2000, Microsoft Internet Explorer 5.01 or higher, Windows Media Player 7.1 or higher, Internet connectivity

And check this out from the Privacy Policy:

AUTOMATIC DATA COLLECTION

Napster Client. After you register for the Napster service, you will be prompted to download our Napster Client software application. In order to make sure the Napster Client is functioning at its best, from time to time we may send the Napster Client automatic fixes, support files, etc. Napster employs software that is used to protect the copyrights associated with the tracks you listen to or obtain. In order to make sure that artists and copyright owners receive applicable royalties, this software identifies and counts the songs you have obtained and/or accessed. At the aggregate level (i.e., not tied to the personally identifying information of any user), we use this data to report and pay royalties, for internal analysis and we share this data with certain Partners for their own analysis. We do not share your personally identifying usage data with any third parties. We may use your personally identifying usage data for a variety of service-related purposes.

From time to time, the security on the Napster Client software may be upgraded by our supplier, which is currently Microsoft. Microsoft advises us that for security upgrades, your player will connect to an Internet site operated by Microsoft and will be sent a security file, along with a unique identifier, which does not contain any personal information about you and is not used to personally identify you or track your activities. Microsoft uses this information to prevent security breaches that could affect you. For more information, please feel free to read Microsoft's privacy policy at http://www.microsoft.com/Windows/windowsmedia/soft ware/v7/privacy.asp#_Security_Upgrade_(Individuali zation).

Further, when you access the service through a Partner and download the Napster Client, we will add certain of your registration information (such as your member name and, if applicable, the Partner or promotion through which you registered) to the registry settings on your computer's hard drive, so that we can recognize which of our Partners or other sign-in pages to send to you when you log on to the service.

Microsoft?? No wonder they were less than enthusiastic about iTunes for Windows.

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.

Get out of jail free card!

[BigGerman]

Sorry could not resist.

Just wait until SCO hears about this.

[rock_climbing_guy]

Just in case we forget to pay up our SCO $699 license fees, SCO will sell gift cards to our friends who can give them to us.

The SCO gift card could be the hottest item on the market this Christmas season.

Answer

[m_niessner]

The Beatles - Eleanor Rigby : $0.99
The Who's Greatest Hits: $9.99
War - Low Rider : $0.99

Getting Slapped with a $100,000 lawsuit by the RIAA for downloading from Kazzaa instead of Napster: Priceless

Settling

[reptilicus]

Hmm, thinking about it, if the RIAA is willing to settle for $2000, as they seem to be, then if you download 100-150 albums (at $15-20 each), you come out ahead of the deal, even if you are one of the tiny minority they actually threaten to sue.

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:Interesting Marketing

[microcars]

and how many of these pre-paid Cards will be purchased as GIFTS that never get redeemed?

they either get given to Apple users (who can't use them), or the card gets lost or accidently thrown away.

and if nothing else it builds Brand Awareness.

I can see these being printed up and used as corporate schwag, given away at trade shows to be associated with any number of other products.
A one-song card could be stuck in a Cereal Box.

Legal Music Download Survey

[oscast]

osViews.com has an interesting survey which asks its readers which of the paid music services people the plan on using to buy legal music. The results are very interesting.

what a deal?

[blanks]

Do they really think this will work? Why would people go to a store that sells music to buy one of these cards when they can just buy the music while they are at the store?

So your options are.
1 Buy music at store
2 Buy card to download same music you could have bought at store.
3 Buy beer and download music for free.

I could really use a drink.

Re:Why would anyone pay?

[MrUnknown]

you dont?
the songs are downloaded off their servers for .99c each (from what I can tell its off their servers, nothing saying otherwise) and there in WMA format.
How do I know? I have the software and am using it right now, it runs directly inside Windows Media Player 9. i pre-ordered so I got 5 free songs.

What about quality control?

[queen of everything]

Back in the day, before Napster died, you would have to download 3 versions of the same song before you got one that was encoded well and/or a complete song. If you get 15 downloads, what happens when you get a bad mp3? What if its a live version instead of the studio version? If its still a music swapping service, all these are possibilities. I won't pay almost $1 for half a song.

Re:Are Mac Zealots

[the_2nd_coming]

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

Re:Heh

[wo1verin3]

1) Purchase $10 premium Napster subscription (unlimited downloads/no burning rights)
2) Download 1000 tracks and add to playlist
3) Launch Roxio AudioCentral Sound Editor
4) Change recording source to 'wave' or 'stereo mix'
5) Disable all windows system sounds
6) Click record in Sound Editor
7) Click play in Napster
8) Come back 3 days later and stop recording in Sound Editor
9) Choose option to split tracks (based on gap of silence between tracks) in Roxio AC Sound Editor
10) Now save as MP3 files.
11) Rinse and repeat.