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The Nine Lives of Napster

lisa langsdorf writes "There's an interesting article on BusinessWeek.com today about Napster's race to gain greater market share in the music download business. According to a recent study, Apple has 75% of the pay for music download market, but Napster could soon gain more market share due to a new upcoming market push. BusinessWeek says: 'Napster could start to increase market share in the more profitable business of selling monthly subscriptions, where customers can listen to -- but not own -- as many songs as they want each month for $9.95. While Napster is far behind RealNetworks' Rhapsody service, AOL's MusicNet, and others, it's taking the lead again in the old Napster's stomping ground: college campuses.'"

38 of 309 comments (clear)

  1. Does anyone know by namidim · · Score: 5, Insightful

    How a monthly subscribtion eventually filters down to the artists? It seems such a system would make it hard to do the "for each time a user listens to X's song they get hit with a bat by the RIAA" analysis.

    1. Re:Does anyone know by TheLinuxSRC · · Score: 5, Insightful

      How a monthly subscribtion eventually filters down to the artists?

      That is an excellent point and might I add another. It seems the public wants, no, demands portability with their music. Are you supposed to only listen to Napster's offerings on your computer or do they have some DMX/Napster thing-a-majig coming? And if so we are back to "How do we pay the artist?".

      just my thoughts....

  2. Cool... by sogoodsofarsowhat · · Score: 2, Insightful

    Because as we all know if you can listen to it...then you can record it :) Not that i would do such a thing...but im sure somebody here can figure out the end run on this model :)

    --
    . I love the sound of burning women and screaming rubber....
  3. Sorry... by BigZaphod · · Score: 3, Insightful

    ..but I am entirely uninterested in NOT owning my music. I like Apple's model a lot. And, thanks to Pepsi, I've even bought some songs from them now and it works wonderfully. If I had a job, I'd probably be buying music from them on a regular song-by-song basis. But I don't. So for now, I use bottle caps with codes that my girlfriend gives me. :-)

    1. Re:Sorry... by stevesliva · · Score: 3, Insightful

      I forsee that I'll be about as interested in owning music as I am in owning an encyclopedia. Welcome to the on demand world.

      --
      Who do you get to be an expert to tell you something's not obvious? The least insightful person you can find? -J Roberts
    2. Re:Sorry... by Chester+K · · Score: 4, Insightful

      ..but I am entirely uninterested in NOT owning my music.

      I am. I'd rather pay $9.95 a month and have access to the label's entire catalog for streaming for as long as I want to pay $9.95 a month, than pay a dollar per song.

      It breaks down to the price of about 10 "bought" songs per month, or 120 "bought" songs per year. Compared to my MP3 library of 3000+ songs, I'd have to subscribe for well over 20 years before it'd be cheaper for me to have just bought all that music outright.

      --

      NO CARRIER
    3. Re:Sorry... by phatsharpie · · Score: 2, Insightful

      Hmm... But what if you have to pay $9.95 a month (on top of your ISP charges) for said encyclopedia?

      -B

    4. Re:Sorry... by Saeed+al-Sahaf · · Score: 4, Insightful
      ..but I am entirely uninterested in NOT owning my music.

      Well, I'm sorry, but you don't own your music unless you made it. What you do own is a copy of the music and a license to listen to it under certain conditions specified by the copyright owner. This includes all that vinyl (you do know what "vinyl" is, right?) and your CD collection as well.

      --
      "Who are in control, they are not in control of anything - they don't even control themselves!" - Glen Beck
    5. Re:Sorry... by cnkeller · · Score: 5, Insightful
      I forsee that I'll be about as interested in owning music as I am in owning an encyclopedia. Welcome to the on demand world.

      I didn't read the article, nor do I have any plans on checking out the service. Having said that, this is a pretty lame analogy for most of us. I can't recall the last time I wanted to jam out with a good article on the Vietnam War while cruising up highway 280 to san francisco. But, when I feel like listening to Front 242 (hello 90's music) and putting the transmission in to Sport mode, thank god I have my iPod and a non-RF interface. And when was the last time you wanted to share a good piece of reference material at a party?

      Let's face it, a lot of things *may* work on demand (movies seem to be what most people think of), but music is something that people like to share in a portable fashion: in the car, at a party, on the boat, wherever you spend your time.

      --

      there are no stupid questions, but there are a lot of inquisitive idiots

    6. Re:Sorry... by PunchMonkey · · Score: 2, Insightful

      Hmm... But what if you have to pay $9.95 a month (on top of your ISP charges) for said encyclopedia?

      Wonderful point. It's very clear that nobody is going to want to pay for any service over the internet.

      --
      I'll have something intelligent to add one of these days...
    7. Re:Sorry... by Daytona955i · · Score: 2, Insightful

      Let's see... how often do you refer to an encyclopedia? How often do you listen to music? If the answer to both those questions is almost never then you've earned the right to STFU (Shut the fine up for the acronym impared)

      I bet you are also likely to pay a monthly subscription to access an encyclopedia aren't you? How are the two related? It boggles my mind to think that you said I don't want to own music just like I don't want to own an encyclopedia.

      I mean sure, when cd's first came out, everyone had an encyclopedia on a disc that seemed to come with a cd drive and it was cool but did you ever really use it? No because unless you are in school doing research you don't need to use one. Now we have the great wikipedia which is free so I doubt I'd be spending any money (aside from a donation to them) on an encyclopedia.

      I have a bunch of cds... I ripped them all to mp3. Why would I pay someone money to listen to those or similar songs? In fact I haven't bought a cd for about 3 years now. ($10/month * 12 months = $120 * 3 = $360) So in my situation I would have wasted about $360 in the past three years. Now say I decided I really like John Mayer's new album and I want to buy it. I go to iTunes and spend $10 and I can now listen to that album whenever and wherever I want. I don't have to continue to pay someone to listen to it.

      So if you pay more than $10/month on cd's and expect to continue to do so for the rest of your life and you don't think napster is going to collapse I'd say it's a deal. However, if you are like me and probably paid a few hundred dollars on a bunch of cd's over the years but only force buying a new cd every year or so then it's really not worth it. On demand works for some things, not for others. I definately don't think it works for music.

      (BTW, I haven't bought a cd in about 3 years because I am boycotting RIAA. I probably won't buy anything off iTunes either but there are a few songs that I've been considering. I really wish more authors would put out their own songs)

    8. Re:Sorry... by Daytona955i · · Score: 2, Insightful

      And then when Napster goes belly up you have no songs that you can listen to, while with Apple, you'd still have those 360 songs.

      Or when you decide that you've been spending way too much money on a service you don't really use any more and decide to cancel your subscription you are back to 0 songs. whoops, should have bought the cd or bought them from iTunes huh? At least then you'd still have music to listen to.

    9. Re:Sorry... by Grue · · Score: 2, Insightful

      True, but Official Version and Front by Front were 80s, and those were their 'best' albums. More imortantly, they were more influential then their later albums.

      Don't you know you get more legitimacy as a fan boy if you claim that the bands early albums as their best? Come on now, get with the program here.

    10. Re:Sorry... by jhwang · · Score: 3, Insightful

      You make good points in your 2 posts. One thing I would add is that a consumer in your example would probably value the 360 songs from Apple much more than the 300 on CD albums.

      B/c you can cherrypick the 360 tracks individually rather than all the album filler. When comparing songs you would actually rate highly and listen to repeatedly, the fairer comparison is probably 360 Apple songs vs. 40-100 CD songs.

    11. Re:Sorry... by Michael+Hunt · · Score: 3, Insightful

      Wrong.

      If you buy an album, you own it. Period. You can do whatever the fuck you want with it. Period. It is yours.

      Copyright law introduces some restrictions on what you're allowed to do with the intangible content on it; the aim, of course, is to guarantee the producer a limited monopoly on the ability to produce said album.

      Let me repeat that. You do not license CDs. You own them.

      I could take a photo of me putting my wang between a pair of Cindi Lauper CDs and that wouldn't violate your hypothetical license.

  4. Just curious by stratjakt · · Score: 5, Insightful

    Why all the hooplah about all these "me-too" online music downloading businesses?

    I mean, I know you all are stiff for Apple, so anything they do just has to be covered as innovative and cool. But Napster is not napster anymore, the name was merely bought.

    Big fricking deal.

    I just dont care that the new Napster is going to start a big marketing push. That's what businesses do, duh.

    --
    I don't need no instructions to know how to rock!!!!
    1. Re:Just curious by bonch · · Score: 1, Insightful

      Because there are still bitter Slashdotters who hate that a program that let them conveniently pirate every album under the sun was taken away and replaced with something legitimate. Anything involving Napster is news, even the fact that it's not really the Napster we remember anymore.

    2. Re:Just curious by finkployd · · Score: 4, Insightful

      Ummm, actually I burn most of the songs I buy on iTunes Music Store to CD. It's not only legal and supported, but REALLY easy to do from the iTunes program.

      Were you under the impression that you couldn't do this? That iTMS files not be easily burned to CD and played on regular CD players?

      Your only valid complaint there is the AAC quality issue, which for me really makes no difference. It sounds 100x better than FM Radio quality, which is what I would be listening to otherwise. But I can see how that would bug some people. Personally if I ever feel I need that quality, I will just spend the extra and buy the CD (accepting that I will be paying for a bunch of songs I may not want)

      Finkployd

    3. Re:Just curious by transient · · Score: 5, Insightful
      128K AAC sounds like crap, same as MP3

      This is your opinion and you're entitled to it, but there are millions of people who either disagree with you or find the quality difference to be negligible.

      I can only listen to it on approved devices which cost 10x as much as CD hardware.

      Or you can burn a CD and listen to it on CD hardware.

      I can only listen to it on computers that I have "registered" due to the DRM applied to the content.

      You're right. And?

      Now tell me again why I am supposed to care?

      It's a new delivery mechanism that supports modern technology, and it's neatly packaged inside a decent music player. It has advantages and disadvantages. So do CDs. I don't give a rat's ass if you use the iTunes Music Store or not, but when you talk about it with such force ("to hell with iTunes"), it just makes you sound crotchety and old-fashioned.

      --

      irb(main):001:0>
  5. Comment removed by account_deleted · · Score: 2, Insightful

    Comment removed based on user account deletion

  6. And when you... by Creepy+Crawler · · Score: 5, Insightful

    Unsubscribe, you lose all 'rights' to play?

    Dont do DRM.

    --
  7. Re:Beam Back by Shados · · Score: 4, Insightful

    Good tip. And if that doesnt work, well...it wouldnt give good quality...but the way I see it...(and many already mentionned), just take an analog wire going from where you plug your speaker to, let say, the line 2 input of a front panel of an audigy platinum (or superior equivalent) and record from that source... Anything software-based would be screwed right there o.O Unless of course it doesnt work on the computer at all... In any case, I thought why on-line music stores caught with the general population was because you could burn CDs of the songs... I dont like that, but so many do, or need to (older car cd player, etc), so well, if its streaming, people who cant get around it cant really enjoy it... Just my two cents.

  8. Re:Is Napster Secure? by IamTheRealMike · · Score: 3, Insightful

    It looks like it uses WMA, which has fairly good DRM. Screws people who aren't on Windows 2000/XP of course, but I guess they consider people using Windows 98, Linux or MacOS not mainstream enough (or more likely, the underlying OS not DRM-secure enough).

  9. College Endorsement by screwballicus · · Score: 3, Insightful

    From the article:

    Penn State University and the University of Rochester's Eastman School of Music intend to offer free Napster subscriptions to thousands of students in coming months. These are just pilot programs, and Roxio granted big discounts that will keep profits negligible at best, say insiders. But the hope is that the students will become paying customers for years to come. "Smart," says Kenswill.

    A college endorsing and paying for a private entertainment service of this sort? This is a school of music, but billing Napster as academic resource seems a little questionable. Unless I miss my guess, Napster's unlikely to have deals with the world's great bastions of classical music performance. Another example of an academic institution adopting a policy of private endorsement.

  10. Why Should I bother? by Anonymous Coward · · Score: 5, Insightful

    Posted Anon for obvious reasons.

    Why should I even bother with any of these pay for download schemes? Lets be serious here.

    They dont provide any CONSUMER Benifit over the "shady" p2p services.

    They give me no incentive to switch. The quality of the files are oft worse then what i can get illegally. You pay for something, and dont get anything tangible in return. The selection is severly limited. And there are file restrictions.

    There is a very easy way to fix this whole problem. Put up a "donate" button on artist's websites so I can fling them a few bucks.

    Unfortunatly, due to politics, this is mindboggingly complex. Im getting really tired of putting up with half-assed efforts that are simply a mediocre nod to the population.

    Remember, we are fighting with people who think that free, instant, worldwide access to much of the art created in the past 100 years is a BAD THING.

    ugh. just ugh.

  11. Are people really going to accept ... by JSkills · · Score: 4, Insightful
    Are people really going to accept some artificial limit on the number of times you can listen to a song or view a video? You know there's a great deal of money behind the idea in order to put us all in line, but come on now.

    Half the fun of discovering/enjoying new music is turning your friends on to it. For me anyway ...

    I understand the need for these distribution companies to cling to the idea of control and taxing our enjoyment habits, but they need to dig deeper when they think about a possible business model that will work for the artists, themselves, and most importantly the consumer ...

  12. Why... by Rick+Zeman · · Score: 4, Insightful

    ...should campuses be buying music subscriptions for their students? Do they buy magazines, etc? Nope. I see things like that and then see the universities plead poverty....

  13. Subscribe to this newsletter, biatch! by orthogonal · · Score: 4, Insightful

    Napster could start to increase market share in the more profitable business of selling monthly subscriptions, where customers can listen to -- but not own -- as many songs as they want each month for $9.95

    Of course it's more profitable -- you're tied to the service by an umbilical cord, and as soon as you stop paying, you lose all access to the music, no matter how much you've paid up to that point!

    There's a reason Americans are so big on the home buying thing: they don't want to pay rent for the rest of their lives.

    Let's do some math: $10/month = $120/year = $1200/decade. So if after paying my 1200 bucks, I decide to stop subscribing -- or Napster goes out of business, then I have, let's do some more math: squat! No music for my money.

    And of course, my subscription won't work at work -- my employer won't want the bandwidth cost of my streaming --, and it won't work on my portable, because it'll all be DRM'd streams.

    If I want to listen without owning, there's this thing called radio. Since that's almost wholly dominated by Clear Channel Homogeneity, I re-phrase: Internet radio.

    But no way will I subscribe to ephemeral music encumbered by Digital Restrictions Management.

  14. "old stomping grounds"? most of the kids moved on! by morcheeba · · Score: 4, Insightful

    It's been 3 1/2 years since napster was shut down -- with a 4-year college, that means that anyone who used the old napster will be graduating out in about 2 1/2 months. This doesn't leave a lot of time for the new napster to get traction on the coattails of the old, especially when iTunes has been out since before the beginning of the school year.

  15. Wait Wait Wait... by form3hide · · Score: 1, Insightful

    Wait wait...

    Napster wants to charge X amount of dollars a month for them to stream music to me? "Music on Demand"? But, I don't own the music... meaning I can't put it on my discman, my iPod, or my home stereo?

    I don't get how it could be successful...

  16. Predictions, Pundits, and Prognosticators by Infonaut · · Score: 3, Insightful
    Thank God the world isn't run by those who predict, semi-predict, or produce weasel-word predictions that can be plausibly denied.

    "While praising Apple's service, analysts caution that its success won't necessarily transfer completely to the Windows environment." - John Borland, c|net news, 7/28/03

    --
    Read the EFF's Fair Use FAQ
  17. Napster on campus by Anonymous Coward · · Score: 2, Insightful

    The whole napster on campus thing is silly. Only very long in the tooth graduate students remember napster at it's prime. Why would youngsters feel any bond with napster?

  18. I still don't get the streaming revenue model by gordguide · · Score: 4, Insightful

    Am I just stupid, or is there some benefit to paid streaming? Exactly what added value do I get for $120/year over the hundreds, nay thousands, of streaming music stations I can get off the internet now?

    Is there some advantage to picking my own songs (ie I'm doing the DJ work here) versus logging into an all-Blues or all-Jazz or all-whatever streaming audio feed and forgetting about music 'till I shut down?

    Or does Napster offer an option to do that grunt work for you (which makes them exactly, and I mean exactly, the same as a free streaming radio station)?

    Sorry, I just don't get it. My $120 still buys 6 to 12 CDs a year (depending on whether they're new releases or older albums) and I can have my choice of internet radio stations, many of whom broadcast at 128 kbps.

    At least with the iTMS you can keep the songs; although I still bristle at paying anything for a lossy compressed version I'm not naeive enough to think that it's not good enough for many people.

    But streaming music is free, free, free right now. What am I missing here?

  19. Napster is dead. No, really. by Ryan+Amos · · Score: 2, Insightful

    As much as they keep trying to reinvent themselves, it's obvious this is a company that is just trying to keep its head above water. It's not even really Napster anymore, and I think people realize that. Whoever owns Napster 2.0 mistakenly thought that Napster was a cultural icon, when in fact, it was simply the first in a string of "free music" programs. People who want to pay for the music use iTMS; it works better, has more name recognition and is "cool," unlike Napster. All Napster really had was its brand name, and now that brand name is associated with "selling out," which pretty much dooms any product based on an image of "cool" to a short lifespan.

  20. College Campuses by brianles · · Score: 3, Insightful

    " it's taking the lead again in the old Napster's stomping ground: college campuses."

    i'm surprised people haven't realized that college students don't have money. the reason why napster was so popular with college students was because of their broadband connection and because it was free. free (and illegal) methods spread like wildfire on campuses and so long as there's a cheaper or free alternative, i highly doubt napster will become as popular on campuses as it has in the past if at all.

  21. You don't own that iTMS product by meehawl · · Score: 2, Insightful

    You RENT an apartment, you BUY music... I'm now over 250 song purchased from the itunes music store and still think its the closest thing to digital music nirvana there is.

    You don't own that music. What you get from iTMS is a long license to play that music on a narrow range of hardware device. You are buying a subscription, only instead of a monthly fee you pay a one-off license fee.

    Don't believe me? Try reselling what you have "bought".

    --

    Da Blog
  22. To purgatory with iTunes, maybe by himself · · Score: 2, Insightful

    If you spend $16 to buy a CD, you get a couple of good songs and a bushel of filler -- but the same money at the iTunes Music Store will let you cherry-pick more than enough good tracks to fill your own mixed CD. Or, you can pay Apple for the album, plus maybe a few extra songs.
    Burn your Apple tunes to a CD, and you're in business.
    What's not to like? Sure, some will scoff that the quality is better on a CD, but I'd much rather get a little noise in tunes I want than crystal-clear reproduction of all the rubbish it took to pad out an EP into an album.

  23. Easy access by jargoone · · Score: 2, Insightful

    I'm not that familiar with iTunes, but don't you have to have a credit card or PayPal account to use it? One nice thing about Napster's service is that a 14-year-old can easily use the service without mom's credit card. I see the Napster "gift card" things *everywhere* now, even at gas stations and the like.