January 10, 2005
Brad Hill’s Napster to Go Criticism
See here. I do agree with Brad’s concluding point that charging the higher price for portability might not be a good way to “compete with ubiquitous, free, portable music in the standard MP3 format.” At the same time, I don’t think the higher pricing is just underwriting the DRM’s cost. First, Napster might be paying higher royalty rates to the labels for the portable subscription offering. Second, either Napster and/or the labels may see this as an opportunity to harness DRM for price discrimination.
Filed by Derek Slater at 1:46 am under General news
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