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Summary:

Napster, in the words of The New York Times writer Saul Hansell, “was the quintessential Internet company: it upended a huge and powerful industry without ever earning a dime itself.” He of course was referring to the old Napster, the one which let loose the genie […]

Napster, in the words of The New York Times writer Saul Hansell, “was the quintessential Internet company: it upended a huge and powerful industry without ever earning a dime itself.” He of course was referring to the old Napster, the one which let loose the genie of file trading.

The New New Napster, the music service that offers every thing from downloads to flat rate music plans is finding that its tough to live in the companies of two powerhouses – Apple’s iTunes and Real, which is now flush with Microsoft Money.

The company just upgraded its software to version 3.5, and improved the download quality to 192 kilobits per second, all in an effort to fight of the #1 and a very distant #2. Knowing how the market is, the company is taking no chances and is resorting to a very, scratch that, an extremely sexy ad campaign in UK.

Get The Whole Thing. A Britney look-alike does a semi-striptease, and the ad ends, “30 Second Previews Leave You Wanting For More?” The clear dig at iTunes?

Sarcasm aside, things are not looking too good for any company named not Apple in the digital music space. Techdirt recently noted that the subscription model is having troubles. In the recent quarter the company posted a net loss of $13.6 million, or 32 cents a share, which is much better than a net loss of $15.3 million, or 44 cents per share for the same quarter a year ago. Sales were up to $23.4 million compared with $9.3 million.

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  1. Don Dodge on The Next Big Thing Sunday, November 20, 2005

    Will Snocap make music sampling work?

    The New York Times has another interesting article today Putting the Napster Genie Back in the Bottle. The story is about Shawn Fanning’s new company Snocap. You might remember that Shawn was the creative genius behind Napster. Snocap is almost the an…

  2. Sex (or Lack Of) Sells

    (ad from SFGate.com) Update (11/20):  Napster is using sex to sell, too. (hat tip: OM Malik)

  3. I totally agree. It really makes me wonder how other music services even hope to survive while competing with iTunes. Apple’s brand is as strong in this industry as is Google when it comes to search. The whole sex thing is a sign of desperation it seems.

  4. Whoa.

    Regardless of where Napster stands, that’s a great spot.

  5. Donklephant » Blog Archive » Napster Goes For Broke Monday, November 21, 2005

    [...] You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your ownsite. [...]

  6. I don’t think that sex can save Napster. In order to succeed in the market place you need to own a word. The word napster own is .mp3 or music. They would need to build a viable business model around music. And that would be difficult given that Steve Jobs (Apple) has cornered 80% of the market.

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