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Napster - Music Subsciptions Are Overrated
kevinbr writes "Napster has concluded that PC-based music subscriptions aren't a growth business ... because it's retreating from its core business. 'Six months ago the subscription music service had 830,000 subs, three months ago it had 770,000, and now it has 750,000. The company says that last drop was expected, because kids stop using the service during the summer. But it's not as if those numbers will swell this fall: NAPS projects only a 4% revenue increase for next quarter. So instead of talking up its core subscription business, Napster is now pinning its hopes on the mobile industry. Music on your cellphone may one day be a real business, but hard to see why Napster is going to be the company that will capitalize on it.'"
What Napster has become is overrated. People aren't necessarily opposed to paying a monthly fee to access a huge music library. They just don't want it to be DRM-ed crap that stops working when you stop paying that fee.
It' not that music subscriptions are overrated, Napster is. They're not in the position to do what they're doing. Subscriptions are worthless if you can't take them with you on the device(s) you use.
Do you know who's in that position. Apple. I bet my money if Apple introduced subscription model that works with iTunes (Win/Mac), iPhone, and iPod, then it'll be largely successful.
Napster just have a somewhat recognizable name and a funny cat logo.
That said, the actual service (and Yahoo! Music, a competitor) is/was really awesome, for who enjoy listening to a huge selection of music - and have an always-on Internet connection - and have their stereos hooked up to a computer. I guess it was a niche, it was just too small of one.
Slashdot: providing anti-social weirdos a soapbox, since 1997.
Well, I have a music subscription to Yahoo and am completely addicted to music new and old. I also work at a computer all day where I am always listening to music. I absolutely can't understand why anyone who truly loves music and has eclectic tastes wouldn't do this. For $7 a month, I have access to several million songs of multiple genres. I don't mind paying for nonDRM'd music, but with all of the music I'm listening to on Yahoo, it would cost me about $5000 in downloads. It would take me being a subscription member for 60 years to make buying from itunes a reasonable alternative. Here, I can sample new albums by people I'm interested in and listen to them over and over again. When I get tired of them, I can just delete them. That way they won't go next to Journey in my decaying CD collection. Its unlikely I would have ever been exposed to Nina Simone, Regina Spektor, the Shins, or Wilco if I didn't have an enormous music library to browse. Some people like all you can eat buffets.
Napster far overestimated the value of its "brand". The Napster name was tied to the ability to get limitless music for free in a way that had the added bonus of being somewhat illicit (but not with huge monetary consequences that the RIAA has since tried to impose on P2P users in the years since). The Napster name was never, ever tied to the ideas of quality service, quality music, or anything else that would allow it to monetize the brand.
Napster never had a corporate reputation to bank on like they thought they did, they were only a tool to get free stuff. Then, when the music business came knocking, and everyone who used Napster started fighting, Napster itself folded like a cheap suit. They shut down and came back with a boneheaded business model: You can still get (some of) the same music you got for free before, but now it's crippled and you get to pay for it. I don't know anyone who thought even at the time that this would succeed.
Other companies with tighter relationships with the record companies have since come up with far more successful ways to market music online (such as tying the store to a hugely popular MP3 player, for example). I don't understand why Napster is even still in business.
You don't buy songs with music subscriptions, you pay to listen to songs, the same way you pay your cable company to watch television. In this case, making backups so you can listen once you terminate your service is really abusing the system.
So, what you're saying is that Napster is a great deal, as long as you use it in a way that violates the EULA and circumvents the DMCA.
Exactly like the old Napster, except that you're now paying a monthly fee to do so.
Gee, do you really want to pay a monthly fee for limited (DRMed) access to music files, access which goes away if you terminate your service.
Yes, you're right. There's no way this could work. I predict that the delivery of media by subscription using satellite (Sirius/XM, Dish, DirectTV), cable (TV, PPV), cell (mobile TV) and fibre (FIOS TV, etc) will remin a tiny and marginal market, doomed to obscurity.
Da Blog
I am sorry, but I do not want to pay $0.99 for a DRMed music file that I can only use on so many systems, etc.
Three statements in one sentence always leads to problems. The WMA files from Napster, as you later admit yourselve, are DRMed and run on only so many systems. Your claims of the DRM being easy to strip are meaningless, you can do it with equal ease with iTunes music. IF you are willing to violate US law as a US citizen, then both formats can be easily converted to non-drm formats (mp3) that plays on the fast majority of systems.
So we are left with your complaint that music at iTunes costs 0.99 per song.
How does this cost work out in the long run. The iTunes song is yours for "life". If napster closes, there goes your music collection. ALL your downloaded music, GONE. For good.
Ah but your ripped it (and made yourselve a criminal by doing so) although you do claim that if you stop paying the subscription, you will delete those MP3's. Right. Sure, I believe that. There must be an honest person among us. Perhaps you are it.
But what if you don't cancel, but Napster goes out of business. YOU may still be willing to pay, but you can't. Bye bye collection.
As for spreading the good word, IT IS AGAINST US LAW and the RIAA does prosecute people. You may not agree with the law, but civil disobedience sucks when you are the one being made an example off.
I just wish you had left the DRM part out of your argument and concentrated simply on value for money. Is 15 bucks per month enough to rent music (It isn't unlike a library card and I think most of accept that) OR do we pay perhaps more per song but it is our song.
Currently both models suck. 99 cents for a few megabytes of data is idiotic next to the cost of production. Loosing all your songs because a company goes out of business in a format that doesn't work on the majority of players sucks as well.
Frankly the entire industry is screwed up. The music industry has become so obsesses with fat profits, that they are unable to see that by simply lowering the price they can make theft totally undesirable.
Say that for 15 bucks per month you could download ANY music you wanted in the format you desired. WHY BOTHER WITH FILESHARING THEN? Oh sure, there will be small percentage who will do so anyway, but it should be almost trivial to get most of the western world to sign up just by putting ALL music in the system, ALL means ALL, including "bootlegs" classical music and rare recordings.
MMO Quests are like orgasms:
You may solo them, I prefer them in a group.
"Moreover, it is VERY easy to strip the DRM from a Napster WMA. I am an iPod user and Napster WMAs won't work with an iPod.... So I use FairUse4WM and, bam, now I have MP3s that play on my iPod."
So, you love the service, but really only love how easy it is to get around their limitations?
"I still pay the Napster music subscription every month and if I cancel I will delete all those MP3s."
I'll give you the benefit of the doubt on that, but how many other people honestly keep their legally-purchased mp3's completely separated from their less-than-legal mp3 files, so they can delete them at a moment's notice?
So, I don't doubt that you've made very good use of a subscription model, but I think your example also shows why it doesn't work very well for most people, esp. if they don't have the expertise to work around the DRM, and why it doesn't work very well for the music industry, if most people don't share your scruples about deleting the music after the subscription ends.
A post a day keeps productivity at bay.
But they'd never go with a pay-to-access Napster-esque service.
The cost is about the same. ~$10/month. With both of them, you lose access to the music as soon as you stop playing. Both are DRM'd (poorly and can be analog-hole'd). Both require access to a network, though the S-Radio is easier to connect to in the car. (No reliable metro wifi in Toronto yet).
So why would they pay for one, but never for the other. After talking about it, the reason we all seemed to agree on is the promise of what's offered. The S-Radio people are right up front with it. "Pay us money. We'll pipe you channels of music. If you stop paying, we stop piping. It's a service we're offering. Okay?"
Whereas these music places are a bit shadier with their promise. "Pay use money, and you can download music, as much as you want.". They say it knowing full well that people associate "download music" as "I transfer a file to my computer and it's there forever, and I can play it however much I want". They think of iTunes, which instantly brings up the thought of "pay per song". So Napster et all are effectively trying to trick people into thinking that they're just like iTunes, but you get unlimited music rather than paying per track. They dance around the "lose access" part of the deal. It comes off as very, very scummy and untrustworthy-- and people don't like dealing with companies like that. After all, if they're going to lie right to your face about this (outright or by omission), then what else are they going to lie about? What else can't you trust them with? Are they REALLY unlimited? It's already too good to be true-- and isn't true at that-- so what else is going to screw you out of your cash?
The satellite radio company tell you right up front what you'll get, and they give it to you. They're business is music.
Napster (and other Music Services) tells you a veiled lie, and seems only intent on taking your money. They're business is exploiting people's desire for music. They don't care about the music at all.
THAT'S why they will always, always fail.
UTF-8: There and Back Again
Which is totally different... I can play it at home, in my car, at work.... oh wait. I can only play it on different machines if i'm on the same network, otherwise I have to take it on my ipod... which can only sync with one itunes... despite that I have multiple computers at home and work, each with a copy of itunes that cant play songs I've bought THROUGH ITUNES.
Yeah, totally different.
But, what can I expect from someone with the name "Apple Acolyte". I'm typing this to you from a mac, btw... while wearing my headphones listening to my ipod...
"The need to build the internet comes from something inside us, something programmed... something we can't resist."
the fact is people don't like paying monthly fees for services
I am having trouble parsing your words "fail". The vast bulk of the media marketplace in the United States and even the world is based on subscription revenue. Compared with these, Apple's revenue from single-licence sales is a blip. It's big when considered against the declining revenues of the other single-charge retailers who usually package their content onto plastic disks, but it's still a very slow growing market, subject to random, huge discontinuities, and constrained in its scalability. Trace its growth over the past decade relative to the wider media marketplace and it's just a tragic flatline which, controlled for inflation, shows an even more rapid decline.
Even considering just the XM/Siriu marketplace, 14 million people are paying subscriptions. The urge for these two companies to merge comes from their difficulty in servicing the huge debt associated with developing and launching their satellite fleet. Imagine if Apple had had to build out its own fibre net and install metro routers in every market where it wanted to sell itunes? It's unlikely it would have succeeded. In effect, Apple's relatively small dollar volume market has been subsidized by massive externalised investment from telcos, cable companies, and bandwidth wholsesalers, not to mention the monthly access fees consumers pay for internet service. That's why companies like Apple (and Google, Yahoo, ebay etc) want "net neutrality" to continue, because their business models are unfeasible otherwise. Not that I am complaining, I personally have benefitted greatly from the de-facto socialised mandates of net neutrality.
Da Blog
Why not just authorise your work and home computers? You're allowed five concurrent authorisations. Sure, it's an annoying DRM limitation. But it's fallacious to say you can only play the same song on multiple computers if they're on the same LAN. (Unless I'm missing something)
And tomorrow the stock exchange will be the human race
"Gee, do you really want to pay a monthly fee for limited (DRMed) access to music files, access which goes away if you terminate your service. That value proposition is exceedingly poor, unless you take measures to copy the files into non-DRM form."
That's one way to look at it. I see it a bit differently. I've subscribed to a music service for quite a while now. (Rhapsody, if anybody's curious.) There are a few benefits to it that are worth $10/mo. to me.
1.) I have access to all their music. Often I go find a bunch of new albums to listen to. That means if somebody recommends a song, for example, I'm listening to it like 20 seconds later.
2.) I don't have a big collection of music to take with my everywhere. Lots of people don't mind that, but I do. I have 3 different computers I constantly access. (Home desktop, home laptop, work desktop.) If I switch computers at work, I just reinstall Rhapsody and I'm hearing music again.
3.) Yes, if I terminate the service, I lose the music. On the flip side, there's lots of songs I used to listen to all the time that I don't anymore. This became wasteful, trying to manage all that. Here I just delete it from my list, and if I want it back like a year later, I just go hunt add it again. Before I was a packrat, keeping songs I didn't know if I really wanted to keep anymore. I can go buy them later if I really really want to make a long-term investment. I haven't done that in ages, though. My playlist today is far different than the one I had a year ago.
4.) This was sort of covered in the first point, but I'm always on the prowl to find new music. This service often gets new albums just as they're released. I pop them into my list and explore. I've found a ton of new music this way. One thing I didn't like about my music scouring before is that it was often tied to how much disposable money I had in a given month. I hated buying 3 or 4 albums and only getting a handful of interesting songs. In theory I could hear the clips and decide, but too many times I've not really liked a song until I've heard it a couple of times in its entirety. This makes me squeamish about buying a whole album.
5.) There's lots of stand-up comedy on this service. I use it to enterain myself at work from time to time during long monotonous days.
Subscription's not for everybody, but it's certainly not for nobody. Yeah, you've got a point. For me, the termination of services doesn't multiply the other values of it by 0. To me it's sorta like cable TV for music, only this is on-demand. I certainly like it better than satellite radio or other subscription services just for that reason. Considering all the new music I've found, I'd say there's plenty of value in it for some people, especially those with multiple computers or finicky music tastes.
"I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)
In this case, making backups so you can listen once you terminate your service is really abusing the system
You mean like time shifting a TV show with your VCR is abusing the system, Mr. Clueless Anonymous Record Company Executive? Do you have any idea how many episodes of Star Trek I taped that are on my shelf right now? And how little I care about what a thief and liar like a record or music executive thinks?
Which finger am I holding up right now?
-mcgrew
mcgrew's razor: Never attribute to stupidity that which can be explained by greedy self-interest
Time shifting != archiving
I don't always use unix-like operating systems; but when I do, I prefer FreeBSD.
Can someone explain to me why we love Netflix, a service where we get to watch unlimited movies for a monthly fee, but services like Napster and Rhapsody, where we get to listen to unlimited music for a monthly fee, is claimed to be an anathema to consumers?