Well the market can't be that terrible. Other companies seem to be
jumping in now, including start-up's Spotify, Nokia's new 'come with
music' service and a new Napster style subscription service from
Microsoft recently. There has also been rumours of Apple doing the same
for a while too. I personally think the subscription model has just been
slow to take off, but i do think it will ultimately work - it's just a
mater of who will be left when it does. So maybe this a canny move by
Napster to head of the increasing competition that starting to spring up
now. Thats assuming this -is- a price war, we dont know what Napster's
finances are like or what their long term game plan is - don't forget
this is only for streaming - the ability to transfer music to off-line
mobile devices does not seem to be effected by this announcement -
that's where the money must be. They could lose money (and we are making
a lot of assumptions here) on streaming revenue, but draw more customers
to the downloads side. It might just be strategic change, rather than a
price war or kamikaze attempt at rescuing some market share. I'm
personally still quite positive about the subscription model - most
people i speak to really love the idea, but too many people own iPods.


-- 
autopilot

Cheers, auto.

-"don't call me Shirley."-
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