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Napster Faults Microsoft for Shortcomings

Digital music subscription service Napster has failed to take any market share away from Apple and its iTunes Music Store (iTMS), and is looking at Microsoft and MP3 player manufacturers as the source of the problem. According to Reuters, it cites Microsoft's inability to develop a system that can compete with Apple as a significant issue.

Chris Gorog, Napster's Chairman and CEO, commented "There is no question that their execution has been less than brilliant over the last 12 months."

Microsoft and the companies that make MP3 players that use its Digital Rights Management (DRM) software have a harder time coordinating hardware, software, and services than Apple. The iPod maker handles all components, and has been able to produce a product that, at least so far, consumers prefer.

Mr. Gorog, however, thinks Apple's days are numbered, and that the digital music landscape will be very different in the next 12 to 24 months. He feels that Microsoft's Windows Media format will take over, thanks to new digital music players that Sony and Samsung have yet to release.

Companies like Napster and RealNetworks also feel that subscription-based music services are what consumers really want. Apple, and its near 80 percent market share say otherwise. Apple's iTMS lets users purchase, download, and keep the music they want for US$0.99 per song. Napster and RealNetworks charge a monthly fee for the music users listen to.

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A guest said: (hide)

What ever this Chris guy is smoking, I want some of it

On a serious note, is he so out of touch of reality that after losing 80% of the market, they still say that subscription based music store is the way to go? As their ad goes "Do The Math"

But then again this typical Chris Gorok, blame everyone any everything else but the flawed Napster's business module

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A guest said: (hide)

I can see the benefits of both plans. There is some music that I know I want to buy and some where I want more than a 30 sec preview before making a decision.

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fo said:

member since 23 Aug 2005 with 39 posts, unranked, send him a message or view his profile

Now THIS is fun. Infighting is always a great sign that the other guys are winning. Apple's winning because they "make the whole widget," and this was recognized some time ago by Wall Street. Gorog shows his arse a bit here – instead of blaming, what is he doing to improve things? Does he have market surveys or focus groups that show WMP is the problem? Or perhaps is his service the problem?

Nah, Microsoft is surely to blame. And Sony or Samsung will come to the rescue. This time it'll happen for sure. We'll just sit tight and wait.

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jfbiii said:

member since 06 May 2004 with 109 posts, unranked, send him a message or view his profile

One has only to look to NetFlix and its "throttling" of their "unlimited" rental service to see where the Napster and Real subscription models will have to go to remain profitable.

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Small White Car said:

member since 02 Jul 2004 with 1960 posts, unranked, send him a message or view his profile

Ok, so the Windows-based players aren't that great because lots of different companies are making players and software so it doesn't work together as well as Apple's does.

And Mr. Gorog feels that the solution to this will be two new players from two other companies?

I'm not seeing the logic here.

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A guest said: (hide)

Puny customers! BOW BEFORE GOROG, Destroyer of Paradigms!!! Cast away your wicked iPods, for my vapor-ware is mighty!!! Submit or be smote against my marketshare!!!! Ha ha!!!

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A guest said: (hide)

I abolutely love this:

"Mr. Gorog, however, thinks Apple's days are numbered, and that the digital music landscape will be very different in the next 12 to 24 months. He feels that Microsoft's Windows Media format will take over, thanks to new digital music players that Sony and Samsung have yet to release."

Especially when you compare it with his engadget interview from 1 year ago where he said:

"we fully expect iPod’s share of the hard-drive device market to have a substantial decline during this Christmas selling season because virtually every MP3 player sold in America will support Napster To Go this fall — except the iPod."

So he seems to have gone from predicting an imminent demise (12 months ago) to one taking 12-24 months (now). Maybe in a couple more years he'll be saying that Apple's market share "will surely fall sometime in the next decade or so"

Another choice quote from the engadget interview is this one:

"So you’re going to have consumers having to make a decision between last year’s technology, your father’s Oldsmobile, or any other MP3 player that will support this extraordinary portable subscription opportunity."

Yes.... and we know how that turned out. But he still seems to be clinging desperately to the notion that some company (now it's Sony or Samsung) will come to his rescue with an iPod killer. Despite the fact that they just make the player (and not the DRM software or the store). I guess he still just doesn't get it.

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A guest said: (hide)

"I guess he still just doesn't get it."

Nah he gets it. He's just whistling by the graveyard.

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A guest said: (hide)

Hahahah.

It looks like people DON'T prefer the subscription model, Chris Gorog.

Although, that was obvious before Napster To Go was even an idea in your clueless little head.

Oh well. At least you're blaming Microsoft now. That's almost as good as taking responsibility for your own mistakes.

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A guest said: (hide)

Maybe Gorog should start singing "Holding out for an iPod killer" (to the theme of "Holding out for a Hero)? LOL.

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A guest said: (hide)

they said same thing 12-24 months ago.

they are toast.

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A guest said: (hide)

frankly i dont want to subscribe to my music, because i subscribe to my gas & electric bill, which goes up and down monthly on whims and circumstances beyond my control. i dont want that for my music or anything else. but its no coincidence my needs as a consumer are conflicting with Napaster's needs as a supplier.

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A guest said: (hide)

Chris Gorog has to be the biggest blowhard I've seen in a a long time. I'm pretty sure he IS the guy who ran ITC into the ground, then toook a job with Univeral at its "City Walk," lost the job there, and somehow ept using his wiles to fail upward. Look at the math on this stuff. Yes, Napster has a "brand name," but it's an old one and not worth much after going into bankruptcy proceedings after being clobbered by the big music production houses. I think Gorog should look for something else to ruin besides a company that already is. POOR ROXIO!

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