Napster Starts Selling MP3s
In an attempt to attract iPod users, Napster Inc. began selling MP3 music downloads Tuesday.  Â
The company hopes to revive its troubled business by making the switch to the MP3 unrestricted file format, which would make its music compatible with any music player or device.Â
"It’s great that we have finally gotten here," Napster’s chairman and CEO Chris Gorog told the Associated Press.
"It is really the beginning of a level playing field, which I think is essential for Napster, but also for the health of the digital music business in general."
Music downloaded through the company’s subscription service will continue to have copyright restrictions.
Major record labels have refused in recent years to license their music for downloading as MP3s. But plunging CD sales and the burgeoning dominance of Apple Inc.’s iPod and iTunes Music Store drove the labels to shift their position last year to remain viable. Currently, Amazon.com is the only other retailer selling MP3 downloads from all the major record labels.
ITunes began selling MP3 versions of recordings from artists on EMI Group PLC labels last year, although the tracks have higher quality and costs than standard copy-protected versions. Los Angeles-based Napster said its MP3s will be priced at 99 cents each, with full-album downloads priced from $9.95.
Rob Enderle, principal analyst with the Enderle Group, told the Associated Press he can’t envision many iPod and iTunes users switching to Napster, since the iTunes software is such a critical component of Apple music players. Â
“The exception may be someone looking for a track that Apple doesn’t offer,” he added.
Napster might be better positioned to compete against Amazon, which isn’t solely focused on marketing music downloads.
"Napster’s brand and focus on the medium should give it an advantage," he said.
Gorog said Napster plans to distinguish itself from competitors through a small marketing campaign emphasizing the breadth of its music catalog, which currently includes more than 6 million tracks. Amazon says its catalog exceeds 5 million tracks.
The company initially disclosed its plan to shift to MP3s earlier this year, and is hoping its all-MP3 download store will draw some buyers to purchase the company’s all-inclusive music subscription. Napster said it had about 760,000 subscribers as of the end of March.
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