Room For Two?

U.S. Bancorp Piper Jaffray analyst Gene Munster thinks that there’s room for only two players in the online music market: he’s betting Apple’s iTunes and Napster will stomp the others. He reckons Roxio’s Napster can break even by selling 1.3 million songs per week with an operating margin in the range of 15-20% per song. The break-even point is even better for Apple, which has similar margins, but distributes its costs across the company.

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