Concerning Napster
Bubble bursting for Napster. Analysts have predicted multiple casualties in the online music business by year end. Napster 2.0 may be heading for the endangered species list. By Eric Bangeman. [Ars Technica] Smiles fade at Napster
MUSIC SERVICE IS LOSING MONEY AND EXECUTIVES
But in the days leading up to Napster's re-launch in late October, HP suddenly -- and without explanation -- returned Napster's $250,000 check and canceled the agreement to install a link to Napster's online music service on its computers. Worse, in January HP announced a surprise partnership with Napster rival Apple Computer to feature the iTunes Music store on HP computers and sell Hewlett-Packard branded iPod music players.
The reality of reincarnating the onetime bete noir of the music industry into a legitimate music service proved more sobering. Napster lost $15 million in its first two months of operation. And the most recent sales data reported to two of the major music labels shows Napster with an estimated 12 percent share of the download market, compared to Apple's 56 percent. Analysts estimate Napster's market share at 15 percent to 20 percent.
That means Napster has attracted about 90,000 subscribers in its first two months -- ranking it fourth, behind RealNetworks' Rhapsody service, America Online's MusicNet and MusicMatch.
This happens to the biggest spender and the best brand (presumably) of the competing WMA players... Will people still say WMA will prevail? of course, Will it happen? Not a chance... [Tyromaniac]
7:00:08 PM 
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