Napster to sell music as unprotected MP3s
LOS ANGELES (AP) - January 7, 2008 The file format change will apply only to single tracks and
album purchases, according to a company press release. Tracks
downloaded as part of the company's music subscription service will
continue to have copyright restrictions.
Unlike music files that come with copy protections embedded, MP3
files are compatible with most portable music devices, including
Apple Inc.'s market-leading iPod media players, Microsoft Corp.'s
Zune and mobile phones that play music.
"The ubiquity and cross-platform compatibility of MP3s should
create a more level playing field for music services and hardware
providers and result in greater ease of use and broader adoption of
digital music," Chris Gorog, Napster's chairman and chief
executive, said in a statement.
The company did not say which record companies had agreed to
license music for sale as MP3s via Napster.
Three of the world's biggest recording companies - Vivendi's
Universal Music Group, Warner Music Group Corp. and Britain's EMI
Group PLC - cleared the way last year for some online retailers,
including Amazon.com, to sell their artists' music as unprotected
MP3 files.
Many analysts expect the fourth major recording company, Sony
BMG Music Entertainment, to follow suit this year.
Napster, which offers a la carte downloads and a monthly
unlimited music subscription plan with the option to transfer
copy-protected tracks to certain devices, said it would continue to
focus primarily on its subscription business.
The company recently told subscribers that it will increase fees
on its basic subscription plan from $9.95 to $12.95 a month
beginning Jan. 30. It gave existing subscribers the option to lock
in the lower monthly fee if they pay for a full year in advance.
Napster did not change the $14.95 monthly fee for its top
subscription tier.
The company disclosed in November it had narrowed its loss in
the second quarter, which ended Sept. 30, to $5.1 million, from $9
million in the same period a year earlier.
Napster ended the quarter with about 750,000 paid subscribers.
Napster shares closed at $1.94 on Friday.
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