Napster is “retreating from its core business: Selling all-you-can-eat music subscriptions. A year ago the company spent $8.5 million on sales and marketing, and this quarter that number had shrunk to $5 million,” Peter Kafka reports for SIlicon Valley Insider.
“The results: six months ago the subscription music service had 830,000 subs, three months ago it had 770,000, and now it has 750,000,” Kafka reports.
“Napster is now pinning its hopes on the mobile industry… but [it’s] hard to see why Napster is going to be the company that will capitalize on it,” Kafka reports. “Napster has concluded that PC-based music subscriptions aren’t a growth business — the same conclusion that Yahoo! Music, RealNetworks and MTV have already come to.”
Full article here.
[Thanks to MacDailyNews Reader “Matthew” for the heads up.]
Business models that fly in the face of human nature are doomed to failure.