Piper: Napster, Yahoo, MSN, Real fighting for small slice of Apple iTunes Music Store’s pie

“In a review of the online music industry, Piper Jaffray reiterated an ‘outperform’ rating on Napster and said the company is fending off competitive threats from Yahoo!, but the latter could gain market share as it maintains cut-rate pricing,” Peter Kang reports for Forbes. “Piper Jaffray said, ‘We believe the Napster brand is the company’s core asset and we expect that in the next two quarters we will see increasing partnerships, which will improve profitability.'”

Kang reports,”Piper Jaffray noted that iTunes from Apple Computer remains the industry’s dominant player with a market share of about 82%. Napster, Yahoo!, Microsoft unit MSN and RealNetworks are ‘fighting for the remainder of the pie,’ the firm said.”

Full article here.

Related MacDailyNews articles:
Over half a billion songs have been sold from Apple’s iTunes Music Store – July 18, 2005
Report: Apple iTunes Music Store more popular than most peer-to-peer file sharing services – June 07, 2005
Merrill Lynch analyst: Apple could ‘flick the switch on a music subscription model’ – May 13, 2005
Study shows Apple iTunes Music Store pay-per-download model preferred over subscription service – April 11, 2005
Apple iTunes Music Store also-rans pin hopes on subscription model – January 03, 2005

15 Comments

  1. All it would take for Apple to put the “also-rans” out of business is to release the subscription service that’s on a shelf somewhere in Steve’s office (no doubt). The only reason they DON’T is that they would like to avoid the MONOPOLY tag that haunts M$ all the time. Napster should thank its lucky stars that Apple has, thus far, exercised restraint in this area!

  2. Subscription services are dead. Music is a very personal item and people like to own it. It is absurd to think that I will not be able to listen to my music because I forgot to make a payment or I decided not to pay for a while.

  3. There are lots of profits in subscription services. You only pay the labels cents per play not dollars per download. You have each users credit card that you charge monthly until they wake up and cancel the service. Your only cost is the initial download bandwidth and the monthly check for playing info bandwidth.

    Once you have subscribers hooked, be it cable TV, cell phones, broadband internet access or music, you are laughing all the way to the bank.

  4. Anyone that would invest in Napster is foolhardy. The company has been hemorrhageing cash since day one and they’re going to run out sooner rather than later most likely. You might as well flush your money down the toilet because it’s the same in the end as putting it into Napster’s stock.

  5. If Apple offered a subscription service, I’d subscribe. I’d still buy music, but I’d be able to purchase much more judiciously than the 30 second previews allow.

    What would probably happen is that I would subscribe for a month a couple of times a year.

  6. Don’t forget —

    Monopolies are completely OK if they were achieved legally! M$ was judged as an illegal monopoly because of devious, manipulative, and heavy-handed practices, such as forcing computer manufacturers to only install Internet Explorer and not Netscape Navigator (just to name one example).

    the iTunes Music Store has achieved its dominance legally through low prices, an easy-to-use interface, cool marketing, and integrating the iPod with the store.

  7. There is no way I would lock myself into a subscription, it’s bad enough that every month I have to pay rent, car payments, utilities, taxes, etc.

    If you have a magazine subscription you don’t lose your back issues when you cancel,

  8. To: Gambit

    You’re right, it’s OK to become a monopoly through legal competitive means, but the trouble is once you achieve that status, regulators can choose to treat you differently to everybody else.

    For example, Apple may be forced to open up the closed iPod / iTunes / Music Store system.

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