May 20, 2008 • 1 min read

Napster launch MP3 store

Napster US has launched a DRM-free MP3 store at 99 cents, with all four majors on board, while its subscription service continues to use DRM.

Napster US has launched its DRM-free download store which was originally announced at the start of the year and, unlike some other digital stores who have rushed to go MP3 since Amazon launched their DRM-free offer, Napster have managed to get all four majors on board for the launch of their MP3 store. They will sell 256kbps MP3s, better quality than the average download, and at the usual 99 cent price point too.

Of course the DRM-free bit is only relevant to Napster's a-la-carte download store, and not its subscription offer, which requires DRM to work. While going MP3 will allow Napster's a-la-carte offer to compete much better than it has ever done before (previously the Microsoft based downloads weren't iPod compatible, reducing consumer interest significantly), the download firm say that their subscription service remains their priority. While selling higher quality MP3s may in itself give Napster a bigger share of the download market, they hope increased traffic to that bit of their operation may help them to upsell more subscriptions.

Napster COO Christopher Allen told reporters: "We're really focused on subscription and driving subscribers as our business model. [The new store] is a way for us, through MP3s, to get some exposure to our subscription service. They may be initially attracted to the MP3s... and I think it will result in more subscribers over time".

One interesting aside to all this is that it has been revealed that SonyBMG's deal with both Amazon and Napster is different to the traditional label/download store arrangement. Rather than simply licensing their music to Amazon and Napster, SonyBMG are essentially selling their music directly to the consumer but via Amazon and Napster's platforms. I'm not sure on the specifics of that arrangement, though it is being chatted about more and more in the last seven days, so perhaps we will find out more very soon.

No word on whether Napster UK will be going MP3 anytime soon, though I'm having great trouble getting through to them just now (their phone number doesn't seem to be working and their press site hasn't been updated since 2006) so I don't suppose I would know even if they were.

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