Sunday, August 6, 2006
Napster Subscriber Base Declining
Posted by Chris Gohlke in "CONTENT" @ 09:00 AM
"Napster disclosed that it is struggling to keep paying users Wednesday, saying it lost 7 percent of its subscriber base as it promotes the free portion of its site. In a conference call, Napster CEO Chris Gorog said it expected to continue to bleed users as some opt for the no-cost option. Although the free service may be hurting Napster now, Gorog said it would pay off in the long run. "Our new free service should lead to lower subscriber acquisition costs and improved subscriber retention while building advertising revenue," he explained."
Switching from subscriber fee based services over to advertising based services is usually a rough road. I just took a look at Napsters free service and must say it is pretty cool. You can play a ton of music for free on your computer with just some ads in the player window. No software install is required either. The only negative is that you can only play a particular song three times.
Switching from subscriber fee based services over to advertising based services is usually a rough road. I just took a look at Napsters free service and must say it is pretty cool. You can play a ton of music for free on your computer with just some ads in the player window. No software install is required either. The only negative is that you can only play a particular song three times.
