Wednesday, January 12, 2005

NAPSTER IN TROUBLE?: The announcement by the RIAA-endorsed neutered Napster that its cutting download prices to the same level as iTunes, 79 pence a pop, suggests that they're having trouble getting people interested in their product. There's a couple of ass-covering statements from the company - they say the move is "in response to an upsurge in record sales over the festive period" and, according to Leanne Sharman, UK general manager:

"With Napster clearly on its way to success we wanted to further fuel our growth with more attractive pricing and create an even broader appeal to music fans," said Leanne Sharman, Napster vice-president and UK general manager.

"By dropping our store prices in preparation for the launch of Napster To Go we are able to offer UK music fans an unbeatable proposition – their choice of how they want to consume music online – via downloads, subscription, or portable subscription – all at low cost and integrated into the most feature-rich and community focused digital music environment in the world."

So, from the first statement, we're supposed to think Napster is seeing itself in competition with physical CD sales; and yet Sharman says the idea is to go for "more attractive pricing." But there's no reason to suppose that Napster are cutting prices for any reason other than the traditional reason retailers drop their prices: to get people interested in what they're trying to flog. No successful shop cuts its prices unless they have to.


7Millionaire7 said...

I'm sorry, but as a 17 year old, I can tell you the music industry will never be the same unless they can COMPLETELY stop P2P sharing abruptly. I LOVE music, but I just can't deny it when it's free. Over the last 2 years I've bought 2 cd's, and I've made about 20. I see the Billboard Charts (American) and it's pitiful. Green Day was #1 this week but barely sold over 100,000 copies. I know there's always a post holiday slump, but 100,000? Only like 3 albums were over that I think. Pathetic. But you jsut can't deny a free thing.

P.S.-For any Mariah fans I have a mp3 on my blog of her brand new single

Anonymous said...

So you'll be welcoming the RIAA with open arms when they come knocking on your door then? "Take me away... It was me, I'm responsible for the downfall of the music industry." You're a brave man.

Anyway, CD sales in the US, UK and elsewhere are up 3-5% this year. There is no slump. Green Day sell 100,000 - What a shame... I'm sure they're crying all the way to the RIAA. "It's not enough!!" says Billie Joe Whatever...

Do yourself a favour and do a search for articles on "The Long Tail" - That's where a greater proportion of sales are, not the records at the tops of the charts...

broklyn hazard said...

Thank you, your article is very good

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