“Virgin Digital has had enough of trying to convince U.S. music fans to sign onto its music subscription service and has announced it is ceasing U.S. operation. The company contacted subscribers telling them to claim a free MP3 player and three free months of the Napster To Go subscription service (a $44.85 value), as an incentive to switch,” Eliot Van Buskirk and Sean Michaels blog for Wired.
“It looked for a little while like [Virgin’s] bargain basement approach to both hardware and the service (which started out cheaper than the rest) would stand a chance against Apple, or at least against the rest of the PlaysForSure ecosystem. But it’s entirely possible that [Virgin Chief Richard Branson] is even more excited to get out of this market than he was to get in.
Full article here.
[Thanks to MacDailyNews Reader “coolfactor” for the heads up.]
Related articles:
Virgin Digital to launch iPod-incompatible online music subscription service – November 14, 2005
More blood on Apple iTunes Store’s play button: MSN Music stops selling music downloads – November 03, 2006
More blood on Apple iTunes Store’s play button: Japan’s Oricon bows out – November 01, 2006
More blood on Apple iTunes Store’s play button: Tower Records liquidated – October 09, 2006
More blood on Apple iPod’s Click Wheel: Dell’s ‘DJ Ditty’ flash-based MP3 player is dead – August 22, 2006
More blood on Apple iTunes Music Store’s play button: MyCokeMusic is dead – June 20, 2006
More blood on Apple iPod’s Click Wheel: iRiver gives up on digital media player market – May 23, 2006
More blood on Apple iPod’s Click Wheel: Sony’s Walkman Bean is cooked – February 13, 2006
More blood on Apple iPod’s Click Wheel: Dell dumps ‘DJ’ hard-drive MP3 player line – February 04, 2006
More blood on Apple iPod’s Click Wheel: iRiver pulling out of Europe? – February 01, 2006
More blood on Apple iPod’s Click Wheel: Thomson gives up on MP3 player, CE markets – December 12, 2005
More blood on Apple iPod’s Click Wheel: BenQ withdraws from MP3 player markets – November 28, 2005
More blood on Apple iPod’s Click Wheel: Olympus halts production of portable digital music players – November 09, 2005
More blood on Apple iPod’s Click Wheel: Rio is dead – August 26, 2005
Apple’s iPod has blood on its Click Wheel: Virgin Electronics is dead – March 08, 2005
Apple’s iTunes Music Store has blood on its play button: BuyMusic.com is dead – March 28, 2004
I’d never even heard of them. Go figure.
You know, I never get tired of the “blood on the clickwheel/play-button” thing. I don’t know why, but it’s truly gratifying.
…I do need a girlfriend.
typhoon john
This is largely due to Microsoft’s abandoning of their own “Plays For Sure” platform which Virgin was using.
If they can afford giving away $45 to everyone that decides to switch to Napster, they must not have very many customers. :p
Nick, I don’t believe it’s due to Microsoft abandoning PlaysForSure at all. The venture just never made any business sense. If there was something worth chasing, they would consider reinventing their subscription business rather than ditching it entirely.
I second that. Virgin Digital who?
Branson doesn’t have a chance against Jobs. Steve the man.
PlayedForSure
MDN: “food”, as in “food for the sharks”
No one is making any money selling the music (except the RIAA). Apple (more or less) breaks even. Apple makes money selling the iPod(s).
The subscription model is the problem. People want to own their music not rent it. If you stop paying the fee your music disappears. Who is fool enough to lock themselves into a subscription service for life?