Blackfriars' Marketing

Thursday, August 04, 2005

Napster: headed for dead again

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Forbes.com has an article today titled Napster On The Rocks? noting that despite growing revenues, Napster just keeps losing more and more money. Napster is the poster child for Microsoft's Janus DRM technology, which we've noted has had serious marketing issues since its inception. And as usual in the Microsoft ecosystem, Napster is getting crushed not only by Apple, by more importantly by other competitors using identical technology who can subsidize their music businesses. Just shows a business with little or no differentiation is not a business at all -- it's a pit into which you throw money. The real question is which music service will be next to fail after Napster does. Hint: it's not Apple.