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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.'"

29 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 skink1100 · · Score: 5, Funny

      > How a monthly subscribtion eventually filters down to the artists?

      The artists get a monthly "attaboy" form letter from the RIAA.

      S

    2. 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. Behind RealNetworks? by Anonymous Coward · · Score: 5, Funny

    While Napster is far behind RealNetworks' Rhapsody service, AOL's MusicNet, and others

    It's gotta hurt pretty bad when Real is considered better than you!

  3. 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.

    --
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    1. 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

    2. 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>
  4. Beam Back by selphish189 · · Score: 5, Informative

    You should be able to just use beam back to... well... beam back the streaming media (if that is in fact how napster does it) onto your computer. You can dowload it at www.freshmeat.net.

    1. 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.

  5. Is Napster Secure? by bfree · · Score: 5, Interesting

    Can you simply subscribe to napster and stream the content to disc, thus illegally "buying" it? It's not that I want to do this, it's just that I would imagine that if people cannot do this (or have to go d2a2d to do it) then their market will always be much smaller than the stores, if however you can rip off the content then I imagine many users will go that route as a cheaper way to get their hands on music that's slightly more legal than simply going peer to peer. Come to think of it, can you just timeshift the napster content legally? I presume not as you can control it's delivery but ...

    --

    Never underestimate the dark side of the Source

  6. Like Most, I would prefer to own by xeaxes · · Score: 5, Interesting

    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.

    Like most people, I buy around 4 - 5 CD's a year. This totals about 50 - 60 bucks. For me to pay $10 per month, I would have to own the music to justify the $120 per year cost.

    I believe that most people, much like myself, would like to own their music. I want to put it on any device I want. I want as many copies as I need. And, I want it available anytime, anywhere. When these companies figure that out, then they will start making money from me. Until then, I will continue to buy the 4-5 cds I deem worthy.

    --

    "BEHOLD, CORN!!" - Dr. Weird, ATHF

  7. I will not buy DRM by reub2000 · · Score: 5, Interesting

    I will not buy from these places. I have no problem with paying for music, it's that I don't want DRM. If any of these places where to sell me music without drm, I would buy it.

  8. Brand name by funny-jack · · Score: 4, Interesting

    Napster the music-sharing service used to be cool. Now, it's nothing more than a Brand Name. That's not nine lives, that's just someone profiting off of an established name. Sad.

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    You probably shouldn't click this.
  9. And when you... by Creepy+Crawler · · Score: 5, Insightful

    Unsubscribe, you lose all 'rights' to play?

    Dont do DRM.

    --
  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.

    1. Re:Why Should I bother? by fupeg · · Score: 4, Informative
      You're absolutely correct that the biggest reason people choose to buy their music instead of getting via p2p is for moral/legal reasons, not because of its "consumer" benefit. There are some convenience reasons too, at least for iTunes.
      • It is far easier to search for something on iTunes, especially non-Top 40 music.
      • The downloads are almost always faster, sometimes dramatically so, especially for non-Top 40 stuff where you are probably only downloading from one person.
      • It is more secure. You are not opening up your computer to some virus/worm that is p2p aware.
      • Quality controls. Ok so maybe you're not satisfied with 128 kbs AAC. I won't get into the debate about the quality of such files. However, at least you're not going to get a messed up rip, or a partial song, or a song that claims to be 320 kbps stereo but turns out to be 64 kpbs mono. You're not going to get Madonna cursing you out either.
      • Combining the two points above, you don't have to worry about downloading something with a virus.
      • Download albums. If you want to download all of The Shins album, you don't have to go and search for them song by song. Buying a whole album is trivial on iTunes, just as easy as downloading a single song.
  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. 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
  14. 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.

  15. ITMS has free streaming music. by cenonce · · Score: 4, Interesting

    iTunes has streaming music for free anyway. Frankly, 9.95 a month for songs I can't download and listen to when I want is about as good as listening to the local radio station.

    -A

  16. "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.

  17. Stupid marketing speak by heldlikesound · · Score: 5, Interesting

    This sentence is so dumb and useless.

    "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."

    In other words, Apple is beating the crap out of Napster right now, but Napster might do better. They might do better because there are only three options, do better, do worse, or stay the same...

    --


    Cloud City Digital: DVD Production at its cheapest/finest
  18. 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
  19. 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

  20. Re:Sorry... by Anonymous Coward · · Score: 5, Interesting

    What does on-demand get you, really? It depends on your listening habits. Let's say you are starting from a blank slate, and have no music.

    After three years of subscribing to Napster, you are still no better off than you were when you first started. You have paid out $360.

    If you had spent this money with Apple, you'd have 360 songs on your hard drive, that would be in a lossy format, but otherwise yours to do with as you please.

    If you had spent this money on CDs, you'd have around 25 albums, or approximately 300 songs. These songs would be completely unrestricted in what you could do with them, be in a non-lossy format, and able to be stored in a reasonably secure manner.

    With the case of Napster, you end up with nothing, and they could go out of business at any time. However, you get to hear a wide variety of songs.

    With the case of Apple, you end up with a lower-quality format than CDs, but you get the files to keep. You start out with a small selection of songs, but it widens each time you spend money. If your hard drive crashes, you've lost them all, unless you back up. If you back them up to CD, you should be aware that CDRs have a dramatically lower life than silver CDs.

    With the case of CDs, you keep a high-quality copy of the songs that belong to you, they last much longer than CDRs, and are less susceptible to scratches/sulight/etc. However, you have to go outdoors to buy them, or wait for them to be delivered. There is the same problem as Apple, in that you start of with a limited selection of songs, but this constantly grows.

    So basically, if you only listen to a few albums at a time, and you want to own your music collection, then Napster is right out. Apple is cheaper, but CDs have significant benefits. Apple is more suited to the impulse buy than CDs (when you are sitting in front of your computer, of course).

    But you need to look at the wider picture. The people who want a constantly changing selection of songs, or to listen to stuff that was released just the other day, already have something to satisfy those urges - radio. Given the combination of radio and Apple/CDs, it's very difficult to see what value Napster is offering.

  21. I must be missing something by Dark+Paladin · · Score: 4, Interesting
    So let's go back a bit and look over the very short history of music downloading.

    First, people discovered MP3's. And that was good.

    Then they traded with each other via IRC and FTP systems.

    Then along came Napster, and automated the whole process.

    Then Napster went bye-bye.

    OK, I'm good so far. As of this point in history, the RIAA is making $0 additional dollars out of Internet downloads. Other services are trying out, like MP3.com and emusic.com and so on, but that's not helping the RIAA. Not that I'm terribly concerned about them myself, but I'm sure they are concerned about themselves.

    So then this happens:

    The rise of the subscriber services. For only $10 to $20 a month, get all the music (within reason, check your personal download service) you want to listen to, and if you want to listen and you're not connected to the Internet, well, tough, we need to verify you, and pity if you want more than maybe 3 machines all listening at once.

    Keep the music on your hard drive? Pish-posh! You must be insane.

    As we all know, subscriber services have pretty much crashed and burned. And this is the part I don't get:

    Why do those who prefer subscriber services keep trying to tell everybody else how great it is? Since Rhapsody and Real Network's service came out, it's been "the consumer will realize how great our service is, and they will come to us with great shedding of tears of joy, and we will ease their music needs with our streaming servers!"

    Except that people aren't rushing to subscriber services. Most of these services have just not been doing well.

    Moving on in history:

    Steve Jobs insults the RIAA in a speach, then introduces the iTunes Music Store, careful not to call it the "Apple" music store to keep "Apple Records" from sueing. It doesn't work, but as the iTunes Music Store sells 1,000,000 songs the first week, which when you think about how Rhapsody had 300,000 subscribers

    every, that's pretty cool

    So let's get back to Napster 2.0.

    Napster 2.0: "Invest in us! We sell music like Steve Jobs and his crew as well!"

    RIAA Members: "So how will you make money? Apple's making all of their money with the iPod."

    Napster 2.0: "Subscription services - people will love it! And then no more of that pesky downloading of music, since all music lovers are just thieves anyway, right?"

    RIAA Members: "Makes sense. Obviously the iTunes store will fail once people see the wonder of subscription services."

    Napster 2.0: "We're going to be rich!"

    So that's where we are. I know Micorosft likes Napster, and wants them to do well to peddle WMA to the world, and then there's the whole college thing.

    And once those college students leave the dorms? Will they say "Hey, let's pay $10 a month to Napster to keep listening to music!", or will they say either:

    A. I haven't had to pay for music in years, and now I can't listen to my old stuff. Streaming music stuff - I'll just download it off [insert P2P service here].

    Or:

    B. Well, guess I'll have to buy the song. May as well use the iTunes store - it works with my iPod.

    Napster doesn't really have a "value added" reason to use them over iTunes. Sure, there are WMA devices out there, and I'd be surprised if the average man on the street can name you 1. No, not geeks - I'm sure I'll get calls of the "Archon Mega Zord Power MP3 player!" - average man on the street. Ask them what MP3 player works with Napster, and you'll either get blank looks, or "iPod", and then you'll scream and say "those only work with the iTunes store, you nitwit!"

    And then they'll say "Oh. Well, I guess I'll go there instead."

    Apple's got it all d

  22. 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?

  23. Re:Sorry... by GreenCrackBaby · · Score: 5, Informative
    I'd rather pay $9.95 a month and have access to the label's entire catalog

    Not agreeing or disagreeing with you here, just pointing out that with Napster, if you pay the $9.95 per month you actually aren't given access to the entire catalogue. Many songs appear to be marked as "purchase only".

    Food for thought...

    --

    "The market alone cannot provide sufficient constraints on corporation's penchant to cause harm." -- Joel Bakan