“If Reuters is to be believed, Napster is spending US$30 million to promote their music rental service, starting with a Super Bowl spot. According to the article, Napster compares their $15/month fee with spending $10,000 to download 10,000 individual tracks from the iTunes Music Store,” Dan Knight writes for Low End Mac. “As if!”
Knight writes, “I don’t know what universe Napster is living in or how gullible they think the music-loving public is, but I can’t imagine how the won’t end up with egg on their face for this one. Ten thousand dollars! Ten thousand tracks? Sure, you could store 10,000 tracks on an iPod – but who would? And of those who would, how many don’t already own most of that material on CD?
“Apple has sold about 250 million tunes and 10 million iPods. Assuming everyone who owns an iPod is buying from iTMS (which probably is not the case) and that only iPod owners are using iTunes to purchase tracks from iTMS (which I know is not the case), we’re looking at Apple selling about 25 tracks per iPod. So how does Napster come up with their number? Simple, it’s the number of tunes you can store on a 40 GB iPod. And then the further assumption that you don’t have any of those 10,000 tracks on CD, so you’ll spend $10,000 to fill your iPod,” Knight writes. “If Apple knew how to do that, they could give away computers.”
Full article here.