Next Challenger: Circuit City + Napster

According to Reuters, Napster will be teaming up with the electronics music chain Circuit City to release a new digital music service. The service, which will go by the ever-so imaginative name Circuit City + Napster, is the latest attempt to compete with Apple's iTunes Music Store, which currently holds more than 80 percent of the U.S. market.

At 99 cents a piece, songs will go for the same price as offered by iTunes’ Music Store; but Circuit City + Napster’s service will also charge a subscription fee of $14.95 per month.

This is the part where I am once again wondering why they are even trying. Napster, of all people, should realize by now that no one wants to pay for music anymore. And if consumers absolutely have to pay, it’s not going to be anymore than the cheapest price out there.

Fifteen bucks per month is enough to buy another entire CD; and for what? Circuit City + Napster’s service claims they will offer some exclusive tracks. But to me, that’s just not enough to pay nearly 180 extra dollars each year. What buyers want is a wide selection of music at a cheap price. And if anyone wants to compete with iTunes, they are going to have to pose a threat in both of these arenas—cost and variety.

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A group blog exploring our media world. Produced by the Digital Journalism: Blogging course at New York University, Spring 2007.

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