“Shares of online music service operator Napster Inc. fell Friday after a Kaufman Bros. analyst downgraded the stock to “Hold” from “Buy,” saying its products aren’t being marketed during the busy holiday shopping season,” The Associated Press reports. “Napster shares declined 11 cents, or 4.5 percent, to $2.36.”
“In a Friday client note, Kaufman analyst Barbara Coffey said… she isn’t seeing Napster’s products being marketed. ‘Subscription music is a product that needs to be marketed and sold to consumers,’ she wrote. ‘Without marketing, we believe that it will remain undiscovered,'” AP reports. “Coffey also lowered her price target for the stock to $3 from $6.”
“The analyst noted that music executives consider Apple Inc.’s iTunes Store the largest digital music seller, trailed by wireless carriers selling items such as ringtones and ringback tones and, finally, subscription services like Napster’s,” AP reports.
MacDailyNews Take: “Consider?” What’s to consider? Apple’s iTunes Store is the largest digital music seller. By far.
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Business models that fly in the face of human nature are doomed to failure.