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Napster and AT&T will let mobile phone users have access to a large library of content

Napster and AT&T are teaming up for a new service that will give phone users the opportunity to have unlimited access to a database of more than 3 million songs for free.  Qualified users will have unlimited access to Napster To Go and will be able to transfer some of the music to both cell phones and select MP3 players.  Users will be given access starting on April 1.  

Qualified users include new or existing AT&T wireless customers who agree to a two-year agreement with the purchase of two different phones offered by Samsung.  Home users who get AT&T broadband or DSL will also be eligible for the promotion.

AT&T hopes that bringing in an outside partner will help the company gain an advantage over mobile phone rivals.  To have music download services and mobile phone providers working together brings consumer options to a new level of interoperability.  "Merging communications with entertainment -- in this case, linking Napster To Go's rich library of music to our wireless and broadband services -- again shows that we are committed to delivering enhanced content across key screens both at home and on the go," said Rick Welday, chief marketing officer of AT&T Consumer.

The Napster To Go service normally costs $14.95 per month.  While the company has agreed to deals with companies such as XM Satellite Radio, college campuses and AOL, the company still has had a hard time using the mergers to create high levels of profit.

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Deeper Issues
By TheTerl on 3/27/2007 11:27:47 PM , Rating: 4
quote:
the company still has had a hard time using the mergers to create high levels of profit.

I think this is the key to what's going on with Napster. Right now, they seem to be having a lot of trouble solidifying their niche in the online music market. Some services (e.g. iTunes) operate by letting users download and permanently own the music, and some companies give subscribers access to the entire library but no ownership. Napster, on the other hand, is trying to get a slice of both cakes by allowing (paid!) subscribers access to most of their library, but forcing them to purchase tracks for a surprisingly large number of the newer or more popular albums and tracks.

The problem with this strategy is that they seem to be taking on the worst aspects of both models. I don't have a link on hand, but several months ago an external study concluded that less than 2% of Napster subscribers had ever purchased tracks, so the other 98% of subscribers are essentially left with an inferior library to most other subscription services. Napster has been quite successful at forming partnerships and taking in investments from outside groups (likely RIAA), but sooner or later they'll need to start turning a profit or they'll be left out to dry. Services like this Napster To Go on mobile phones are great for helping distinguish them from other music providers, but I think they also need to build a better business plan from the bottom up if they want to be successful.




RE: Deeper Issues
By AlexWade on 3/28/2007 8:28:02 AM , Rating: 4
Napster is the classic example of record labels not getting it. Napster is their attempt to force their ideal on us, and not surprising it is failing. In RIAA dreamworld, we would all rent their (sorry) music for life, say it is for the artists benefit, all the while the artists become paupers. You want to own the music? Sorry, can't do that, but you can burn it to a CD for a little more.

I do not subscribe to the idea that music is property of greedy Sony, greedy BMG, greedy Geffen, or any other greedy big label. In most businesses, the way they treat us would have sunk them long time ago.

It is not a coincidence that when you treat your customers and employees well that your bottom line thrives. It is also not a coincidence when you treat every customer like a thief just waiting to steal and underpay your employees that your bottom line suffers. Record labels are losing money, not because of piracy, but of their outmoded and woeful mismanagement.


RE: Deeper Issues
By Choppedliver on 3/29/2007 1:48:23 AM , Rating: 2
I love napster. To me, its a digital radio station that I can control and it has no commercials. That to me is worth my 9.95. It has lots of nice features that are icing on the cake.

And the cost is less than the cost of 1 cd.


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