Napster Has One-Year Ad Agreement, Some Exclusive Rights With AOL As Part Of Music Now Deal

Napster spells out some of the details of its deal to acquire AOL’s 350,000 or so Music Now subscribers via a brief SEC filing. There are actually two tethered agreements: asset purchase and advertising.
Napster will pay approximately $15.6 million to AOL Music Now LLC and AOL LLC, more than the $15 million originally reported by the NYT. That equals close to $45 per sub.
— The advertising agreement calls for Napster to get “certain exclusive advertising rights” throughout the AOL Music Channel for one year, subject to renewal based on milestones. AOL guarantees a “minimum amount” of ad impressions. That exclusive may apply only to the download subscription model; still checking on that.
— As reported, the cash amount is subject to change if AOL delivers more subs or fewer; it also can be affected by ad delivery.
Related:
AOL Sells MusicNow Subscribers To Napster For $15 Million

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