Digital Music Bits: iTunes; XM-Napster; Pricing; Online Music Biz

XM + Napster Beta’s In Play: XM subs can listen to XM Radio Online then use Napster to access, download and buy music heard on the satellite radio service. “It takes the promotional impact of radio and puts it on steroids,” says XM CEO Hugh Panero. It also puts the sub fee on steroids — an additional $9.95 a month billed to Napster.

iTunes Outsells Traditional Music Sources in U.S.: The NPD Group says iTunes broke into the Top 10 music retailers’ list during 3Q05, a first for the online service; iTunes ranked 7 this year and 14 in the comprable quarter the previous year. NPD predicts a higher share by the end of the year. Press release.

iTunes Leads In UK: iTunes holds 54 percent of the UK online market while the next-largest competitor is Napster with 10 percent, according to an XTN Data survey of 1,000 online consumers. Wippit is third with 8 percent. Loudeye’s OD2 service powers the services that make up most of the remaining 28 percent, according to Macworld UK.

Mobile Music Pricing Mayhem?: Jason Fry argues that carriers and labels may be terminally confused between the value of ringtones to users versus willingness to pay ringtone rates for downloads. Forrester Research analyst Charles Golvin: “Aside from the fact that they’re built on music, they really have very little to do with one another.”

Online Music’s Elusive Bottom Line: Meanwhile, BW wonders if online music services can make real money or are they doomed to serve as brand extenders?

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