Originally published February 13 2005
Music rental service launched by Napster, to compete with iTunes
by Mike Adams (see all articles by this author)
Napster, the company that became famous for musical file-swapping, has announced a new music rental service for users of MP3 music players. Napster will provide access to an unlimited number of songs for $14.95 per month. Users cannot keep the songs, and if they cancel the service, their songs and playlists will disappear.
- Napster today announced the introduction of its music "rental" service to consumers for various third party portable audio players.
- The online music provider's goal is target Apple's iTunes music service for its iPod player.
- Napster will allow users to download unlimited number of songs and play them on various portable audio players for $14.95 per month.
- This is a music rental service, meaning if you decide to cancel the service or don't pay the monthly charges for one reason or another, the company will have the ability to delete all your play lists and music albums.
- Napster is hoping to target Apple's iTunes with a $14.95 price tag for unlimited, although not owned, songs while its rival offers each song for $0.99.
- Interestingly, the music rental service will support portable audio players from Creative, Gateway, Dell, iRiver and Samsung, but not Apple's iPod.
- Apple cleverly stated that Napster is particularly no threat to them, as majority of the users like to purchase their music.
- Along with the newly announced rental music service, Napster also features a $10.00/month subscription fee model and a similar price per song like Apple's iTunes.
- Napster will launch a $30 million advertisement campaign on Sunday promoting their newly announced service.
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