HP, Napster and iTunes

Discussion in 'MacRumors News Discussion (archive)' started by MacRumors, Feb 19, 2004.

  1. macrumors bot

    MacRumors

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    #1
    Despite Napster's popularity at select colleges, it appears that the relauched Napster service is having some difficulties.

    This Mercury News article reports that besides losing money, several executives have left and a round of layoffs began on Wednesday.

    According to record label sources, Napster only sells approximately 1/4 of the songs that iTunes does.

    Of additional interest is that the surprise Apple-HP deal announced in January was originally Napster's partnership:

    Napster's chief executive Chris Gorog, however, remains upbeat about the company's prospects and points to retail partnerships, pre-paid cards, and their European launch.
     
  2. macrumors 68040

    gwuMACaddict

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  3. macrumors 65816

    jholzner

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    #3
    I'm betting that it was the iPod that broke HP's deal with Napster. HP wanted to sell the iPod...or HPod and a deal with Napster would have buried that idea. Way to go Apple! Wonder which iTMS competitor will be the first to go under. Hope apple beats Napster to Europe.
     
  4. macrumors G3

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    #4
    Napster... kind of doesn't really have the same kudos now that it's legit does it... :eek: :p :p
     
  5. macrumors 6502

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    #5
    it's not very often or for very long that we can say we OWN a market, so i have to admit i'm enjoying seeing Napster suffer (happy to admit there are quite a few oldskool Napster songs on my iPod).

    and i was pretty shocked by the HP/Apple deal, but evidently not as shocked as Napster!!! :p
     
  6. macrumors 6502a

    dukemeiser

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    #6
    I wonder how long it will be before they switch to AAC to stay alive? :D
     
  7. macrumors regular

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    #7
    Did anyone actually think that Napster would survive? How long until it goes completely under...
     
  8. macrumors 6502a

    Rincewind42

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    #8
    Well, unless Fairplay is licensed to them it won't really matter if they do. And while I like that Apple is currently owning the legal market, in the long term I think they will need to allow others to sell Fairplay encoded AAC, and even further out to license other players to play it. Basically kill 1 or 2 of the major WMA services (Napster & some one else) and then allow themselves to make money on others who want to sell & play their DRM flavor.
     
  9. macrumors 65816

    Photorun

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  10. macrumors 6502a

    Rincewind42

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    #10
    I seriously doubt they will live to see their first anniversary - unless someone really wants to lose a bunch of cash on them :D
     
  11. macrumors newbie

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  12. macrumors 68020

    srobert

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    #12
    Is'nt that Chriss Gorog guy the same guy who last month was saying in conferences things like:

    "Apple got it all wrong with it's iTMS model"

    "Don't join the Apple bandwagon"
     
  13. macrumors 68040

    jxyama

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    #13
    some of the quotes in the article are hilarious.

    nope, there's no money in the downloads and jobs made it abundantly clear that iTMS exists to sell iPods.

    that's $10/mo to access 500,000 songs or $1 a song to keep. has this guy learned anything from the success of iTMS and failures of other subscription services? :rolleyes:
     
  14. macrumors 68030

    johnnyjibbs

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    #14
    I always thought that Napster 2.0 was not coming to Europe (as in no plans). I guess they'll have to now, especially when iTunes may not arrive here until the end of the year...

    Well, I hate seeing the downfall of a 'rival' being a good thing, but this does bode well for Apple.
     
  15. macrumors 6502

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  16. macrumors regular

    crawdad62

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    #16
    Now that's an interesting possibility. Actually I'm surprised it did happen from the get-go. I guess MS is/was betting on its very own service but it seemed like a decent marriage.
     
  17. macrumors 68000

    Lancetx

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    #17
    Napster is having the same problems with breaking into the European market that Apple is, so you won't be seeing Napster in Europe any sooner than Apple gets there. At the rate things are going, Napster won't even survive long enough to get things started in Europe in the first place. I'll bet that one year from today they aren't even in business any more and they may just drag Roxio as a whole down with them.
     
  18. macrumors 603

    nuckinfutz

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    #18
    Let'em wither

    And then Apple can swoop in ravage their caracass for anything worthwile. Perhaps Apple can turn Napster into a underground unsigned artist label instead.
     
  19. macrumors 68020

    srobert

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    Jan 7, 2002
    #19
    Too bad. I like Roxio Toast Titanium.

    But Gorog should make up his mind. He says that monthly fee is the way to go but he sells stuff like this, that can only be used in a per song model... thinking of it, the napster player is useless if you use the "good" monthly fee model. Or am I mising something?:

    [​IMG]
     
  20. macrumors newbie

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    #20
    The author of the Mercury article writes about how Napster is getting a push from pre-paid cards at Target, but fails to note that Target is also selling iTunes pre-paid cards and iPods.
     
  21. macrumors 68000

    Lancetx

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    #21
    Me too. So let's hope that Apple can acquire the rights to the software in the aftermath. :)
     
  22. macrumors 65816

    billyboy

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    #22
    Sounds like Napster have money from a couple of sources and had too many cooks spoiling the broth. Seems that iTunes business plan really is going places.
     
  23. macrumors 65816

    jholzner

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    #23
    Well, I stoped by my local target store last night. They had napster cards for sale but none for itms and NO ipods anywhere...and they haven't for months. I don't know what is going on.
     
  24. macrumors member

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    #24
    The Napster layoffs showed up on F*ckedCompany yesterday.
     
  25. macrumors newbie

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    Oct 22, 2000
    #25
    Cheers to the imminent death of a WMA service. Does anyone actually use WMA encoded music files? I know all of my music is AAC and MP3's...
     

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