“Shares of Roxio surged Monday after the software company agreed to buy Pressplay, an online music service jointly owned by Universal and Sony, in a $40 million deal that will resurrect the old Napster brand. Roxio, which acquired Napster for $5 million last year following its court-ordered closure, had said it was going to relaunch a legitimate successor under its well-known brand name. However, now it will jump-start that process by selling music offered by Pressplay,” reports Steve Gelsi for CBS.MarketWatch.
“‘The new Napster will be unrecognizable from the current Pressplay,’ said Chris Gorog, CEO of Roxio. ‘We’ll have ease of use and more features and will be a friendly, easier application.’ The terms of the pact give Roxio a legal digital music distribution framework and catalog rights with all five major music labels,” reports Gelsi.
“As for Apple, Gorog said he doesn’t consider the company a competitor for now, because ITunes operates only on Apple machines, which make up about 3 percent of the market. Even so, when iTunes becomes available for Windows-based computers, said Gorog, ‘We have a monster competitive advantage with the biggest brand in the online music business, and it’s recognized as a music brand and not a computer brand,'” Gelsi writes.
Full article here.