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Tuesday, May 20, 2008

Napster Strikes Deal With All Major Record Labels

Nine years after the Napster service hit the Web, the service has finally achieved an important milestone: all the major record labels have licensed their content.

This comes as the entertainment industry -- mainly the recording industry and the television industry -- is rethinking the decision to allow Apple a near monopoly on digital distribution sales. Faced with the realization that CEO Steve Jobs is more interested in using digital content to push his company's electronics, the entertainment industry is now looking for a variety of alternatives for selling content.

For Napster, that means this according to PaidContent:

It claims that at 6 million DRM-free tracks from all four major labels plus thousands of indies it has the largest selection of any competitor. Pricing looks pretty familiar at $.99 per track and $9.95 per album. And it should go without saying that since they’re MP3s, then yes, they play on the iPod.

The new deal gives Napster the content for a monthly subscription service to go along with its DRM-free MP3 sales option.

With Napster, the emerging mobile video market, the NBC-News Corp television video service Hulu and even MLB.tv which broadcasts every major league baseball game for about $10 per month, content companies have started to latch on to the value of reaching customers anywhere, anytime and anyhow.

By Brad at 08:57 AM | Comments (0)

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