Napster Doesn't Plan to Cut Prices

[James Fee]

<div class='os_post_top_link'><a href='http://www.reuters.com/audi/newsArticle.jhtml;jsessionid=WQSZ20QAK44PUCRBAEZSFFA?type=technologyNews&storyID=8510613' target='_blank'>http://www.reuters.com/audi/newsArticle.jhtml;jsessionid=WQSZ20QAK44PUCRBAEZSFFA?type=technologyNews&storyID=8510613</a><br /><br /></div><i>"Napster Inc. does not plan to cut the price of its online music subscription service despite new competition from Yahoo Inc., Chief Executive Chris Gorog said on Monday. "We are not positioning our product as a discount product. I think Yahoo has," said Gorog, referring to advertising in the Yahoo service. The Napster executive said he would wait to see whether Yahoo's move had an impact on its business and but ruled out cutting prices on its own music services for now."</i><br /><br /> <img src="http://www.digitalmediathoughts.com/images/3214_Napster-logo.png" /> <br /><br />He said only what he could about the price difference. It doesn't sound like their business model allows them to cut prices or they would have (at least down to $7.95). The wait and see attitude is probably best at this point as we don't really know how many more people will jump into subscriptions at this price. Buying music from a provider is like buying gas. Sure you have some brands that you prefer, but when the cost difference is great, you'll go with the lowest price. Same here, its not like the Yahoo! product is any less than the Napster product (Jason and his Yahoo! Instant Messenger problems aside). I think people for whatever reason would pay extra for an Apple branded iTunes product, but i don't really see much that Napster can do since Yahoo! has so much more integration on their side. I suspect we'll see someone buy up Napster (Sony, Google, Samsung?) and drop the price down to Yahoo!'s.

[OSUKid7]

I've subscribed to Napster for the last several months, and my main problem is it won't transfer tracks to flash cards. I finally got Pocket WMP10 on my iPAQ after the ROM upgrade was released today, so at least I can transfer purchassed tracks to its internal memory. I guess my next decision is if the Napster To Go subscription is worth the extra cost, so I don't have to pay for each song I want on my Pocket PC.

Ah, the days of tapes and CDs seem so simple now. :P (I'm sure I'm saving money not buying each album though. ;))

[klinux]

I suspect we'll see someone buy up Napster (Sony, Google, Samsung?) and drop the price down to Yahoo!'s.

I agree. Everything Yahoo has Google wants to have and vice versa (or the other way around, if you are a ardent fan of Google's). Although I do not see Google buying Napster. It will likely buy a small unknown music outfit that is doing it right but just does not have the capital or management or the right structure to go further.

[surur]

For a subscriptions service library size is the defining feature. If they don't have most of the tracks you like then it is pointless subscribing and then STILL buying the rest of the music you want to listen to. I understand that Yahoo's library is still quite small at the moment, which would preclude it from being a serious option.

Surur

[puithove]

for me it's less about price and more about quality. I wouldn't classify myself as an audiophile, but I can definitely tell a difference between 128 and 192 files (above 192, I haven't been able to really tell a difference). Yahoo chose to go with the 192 - that says something to me. I have been a paying member of the Napster subscription model since they re-opened under Roxio. The subscription model works for me and I have enjoyed their implementation of it thus far. However, I am currently trying out Yahoo and see some good potential. They have to do some improvements on their client app (it's locked up on me a couple times) but they're still labeling it as "beta" so I can live with that for now. Hopefully their catalog will expand but so far I've only run into a few things that I wanted and they don't have. It looks like a good start for them. Perhaps they'll improve and make a big mark in the market. Or maybe they'll push the current big players to step it up.

[James Fee]

For a subscriptions service library size is the defining feature. If they don't have most of the tracks you like then it is pointless subscribing and then STILL buying the rest of the music you want to listen to. I understand that Yahoo's library is still quite small at the moment, which would preclude it from being a serious option.
What is missing? I see very little that isn't already in Napster or MSN. Of course iTunes has much more, but it doesn't have subscriptions. Sure size is important, but paying twice as much for only 10% more obscure tracks seems wasteful.

Napster calling Yahoo! a "discount product" because it has ads on the website or client is laughable because as far as I can tell so does Napster, maybe not as much but all those Napster ads inside their website is an ad no matter how you look at it.

[ale_ers]

They have to do some improvements on their client app (it's locked up on me a couple times) but they're still labeling it as "beta" so I can live with that for now.

I wonder if you guys who are playing with Yahoo can answer me a question: after you download a song can you organize it and transfer it to a portable device through Windows Media Player?

I’ve heard that not many people are fans of Yahoo’s app, but if the songs are put into you My Music folder, can’t you use any app you want?

[puithove]

I wonder if you guys who are playing with Yahoo can answer me a question: after you download a song can you organize it and transfer it to a portable device through Windows Media Player?


I can't testify to being able to transfer to portable device through WMP but I can tell you that just like files from Napster, you can open and play them in WMP. This would lead me to believe you should be able to do the transfer as well.

[Ed Hansberry]

Napster has their head in the sand. yahoo hes higher quality files (192 vs 128) and a cheaper price. I never really switched - Napster's rental price was too high. I subscribed to Yahoo last week. $60 annually is a good deal. I can't see ever logging back into Napster.