We feel Napster subscribers should be able to access it anywhere - with no additional fees

Napster released a new mobile app today (see early blog post and press release) that enables Napster subscribers to redeem their tracks over their mobile phone. We think this is a great way to extend the value of a Napster subscription to the mobile platform.

Naturally we would like to bring the entire Napster subscription experience to the mobile platform so our members can not only redeem their tracks over-the-air – but we’d also like to provide on-demand streaming and provide members with access to their personal playlists and Napster’s radio stations and special programming.

So we’ve developed an app that is intended to be deployed on the iPhone, Blackberry and other smart phone platforms and we will be deploying the app as soon as we obtain the necessary rights.

Our view is that when music fans pay for a subscription to Napster – they should be able to access it anywhere without having to pay additional fees. Some folks at the labels support this approach, and we hope to gain the broad support we need to deploy – sooner than later.

We believe extending Napster’s on-demand streaming to the mobile platform will be a great enhancement to the Napster experience and will help us keep our customers happy and engaged – wherever they are.

Thanks. Let us know your thoughts on this…

-CHRIS GOROG, CEO

Comments

[JB]

Given the competition, the labels obviously permit the access rights. It just comes down to a matter of money.

As much as I'd like to keep the subscription rate at $5/month for my iPhone access, I have to agree with the To Go members suggesting to submit the app now for the higher subscription rate and continue your negotiations.

Like many others, it might be worth switch to Rhapsody if this app doesn't go through soon. Down the line, if Napster ever gets their act together, we could also switch back. That's the power of being the consumer in this instance.

Good luck guys, my iPhone is very lonely without Napster.

[Thomas]

I completely disagree with your stance. For one, I am not paying the $5/month fee, but the Napster To Go fee, because I have an MP3 player that is only compatible with that service level. I don't have the time nor the patience to put together playlists, which is why a service like Napster appeals to me. But since I am paying the higher fee and Apple has now shown to allow streaming music services, for that price I should be able to use the iPhone application you have. So since it is all ready to go, why not put it out there and at least have Napster To Go users access it right now, even if you think the price point is not right. Then you can continue to fight the labels (we all know that's not going to be over any time soon).

If not, I will probably be looking at Rhapsody when my annual contract comes up. It's the same price, similar service (although I like Napster better) but it lets me use it on my iPhone now.

[DashboardDJ856]

From an article on 09/01/09 from the site mediamemo...

"Best Buy’s Napster wants you to know that you can now buy music “over the air” and beam it directly to your phone. Yawn.

What about the company’s awesome new iPhone app, the one that will let you stream music directly to your handset? You know, like the one that Apple (AAPL) just approved for Spotify, the superhyped service you can’t even get in the U.S. yet?

Don’t hold your breath says Best Buy (BBY). That Napster app is not coming anytime soon. And neither are apps for Google’s (GOOG) Android platform or Research In Motion’s (RIMM) BlackBerry. And it’s because of those darn music labels. From a press note the company sent out this morning:

One of the most common questions Napster receives is, “When will you offer an iPhone app?” Well, Napster has created an iPhone application that allows subscribers to stream music on-demand to their iPhone—including personal playlists, albums and radio stations. You can imagine the company is also looking at streaming applications for several other mobile platforms as well (Blackberry, Android). However, due to the high licensing fees for streaming to a mobile phone, Napster has not yet submitted the iPhone app to Apple for approval or attempted to bring the application to market.

Now that’s an interesting approach–something akin to showing off a shiny new sled in a toy store window below a sign that reads “Not coming soon, not our fault.” Or that bank ad where the jerk takes the truck from the chubby kid.

I also don’t know if Napster’s explanation tells the whole story: Best Buy/Napster and the big labels already have an agreement that lets the company stream unlimited music to your PC for $5 a month. Just how much more would the company have to charge to accommodate the fees the labels want for mobile streaming? I’m supposed to talk with Napster folks later today, and if there’s anything I can pass along, I will.

UPDATE: A little clarification from Napster president Brad Duea. His company’s position is that it doesn’t want to move about its $5 a month price, and that it would have to do so in order to offer streaming.

Why would it have to do that? Duea won’t spell it out. But henotes that RealNetworks’ (RNWK) Rhapsody, which has submitted an streaming music app to Apple, charges $15 a month for “on the go” service it already offers, and assumes it will charge the same for a service that works with the iPhone. Similarly, Spotify charges the equivalent of $16 a month for its premium service in the UK.

Of course, it’s possible that RealNetworks or Spotify will try subsidizing some of the cost for a mobile app in order to grab market share, and offer their iPhone/mobile services for something closer to Napster’s $5 fee."

It makes you wonder why Napster has about 500,000 subscribers compared to Rhapsody's 2.5 million and iTunes 10 million.

[Brandon]

Napster’s comment that they don’t not want to charge above the $5 dollar price point for mobile access to music is CRAP. You already do, it’s called Napster To Go. I’ve been paying $14.95 a month for the past 4 years and now I’m being told that that price point isn’t fair to the customers??? Maybe it is overpriced, but I’m still willing to pay it for true mobile access. I’m the customer after all, shouldn’t I be given the choice. So it’s ok to charge $14.95 to use the Napster To Go service with the list of “Approved” phones but $15 for iPhone access is too expensive? I must be missing something.

I’ve had an iPhone for over 3 years just waiting for a Napster iPhone App and now I hear it’s not going to happen. Rhapsody has an iPhone app at the same price point ($15). So what incentive do I have to stay with Napster? I’m not the only one ready to jump ship, is a Napster iPhone app going to happen or not? If not, let me know so I can switch to Rhapsody.

[Matthew]

Is it true that Napster has abandoned an iPhone app? There is no functionality for the iPhone at m.napster.com. Why cant m.napster.com allow access to our saved playlists?

[Mike]

I hope this App will be available in Germany, too!

[Kobi]

I've been a Napster To Go ($15/month) member for 5-6 years now. I did not switch to the cheaper plans because I listen to tracks on my mobile phone (Palm Centro) more often than my PC. Streaming would be great, but I also like the ability to listen "offline". I'm considering my next phone - Palm Pre or iPhone - but unfortunately even at $15/month, neither supports Napster To Go. I'm not keen on switching to Rhapsody, but unless Napster To Go is available on either phone, I may not have a choice. I agree with both Andreas and DK: some people are willing to pay a premium for "offline" playback on their mobile phones - it is called Napster To Go. But to survive, it needs to support the latest phones out there. Rhapsody already does, and Spotify soon will.

[Craig]

I have an iphone, and really would love a napster app.

The problem with all this talk of $5 is that in the UK we pay £10, or $16. ('to go' subs cost $8 more!)

If spotify can provide the iphone streaming service for the exact same £10 Napster take from me every month, why should I stay with Napster?

The app store isn't global. We in the UK are surely paying enough every month to cover slightly higher steaming costs, so release the app over here! Think of us as a test market :)

[Chris Gorog]

Thanks for your input, Michael. Much appreciated.

Andreas - request to listen to songs when offline is a popular request, and we're working with our partners on this, too, to hopefully implement soon.

[DK]

I'm willing to give Napster till the end of the year for it to get iphone app approval, else I'm returning to Rhapsody. I think it's rubbish that I pay for a to-go membership, but don't get free mp3 credits. Mind you that Zune offers that, and I have a Zune player that I can start using, too. Honestly, I like the UI on Napster and haven't had nearly the same sync issues I had with Rhapsody, but if I'm going to pay the 3x the price of a regular user and get shafted, I'll go back to Rhapsody and start getting 64k streaming to my iphone 3gs. Get it together. I am a customer who votes with my finances and I'm waiting. I'm also a premium customer paying 3x the rate of your average base.

[Andreas]

A mobile Napster app sounds great, but please implement a feature in this app, so that we can hear our playlists offline. Spotify did it, so i think you could do it too! Look here for some ideas about it: http://www.spotify.com/blog/archives/2009/07/27/spotify-for-iphone/

[Michael York]

Hi Chris -- so nice to see you personally responding to comments!

The best thing to happen to Napster in months (even years) is the drop to $5 **with** unlimited streaming. It's a simply amazing deal.

However, some wouldn't mind temporarily paying a premium for mobile service while you get things sorted out with labels.

As I understand it, you have no specific timeframe as to when you will be able to include mobile access at the same $5 or similar pricing, so it would be a great relief to many to at least release the app now with a higher fee...

Hope to hear back from you!

[Chris Gorog]

Jason - your question is exactly why I published this post. We believe the price for accessing your Napster music on a PC should be the same as when mobile. While we've developed an app that can be used on the iPhone, Blackberry and other smartphones, we are working closely with our partners to offer it at a price that is closer to the $5 you are paying on the PC before releasing to market.

[Jason]

I noticed Rhapsody now has an iPhone app for streaming music as of Seot 9th!! Why doesn't napster?? Of course rhapsody is charging $15 per month for this service rather than 5 like napster. If napster jacks the price up to 15 dollars per month, why use them when rhapsody is already there?

[dooit42]

I hope it stays at just $5/month, such a good deal.

[FutureWolf]

Will there be one for Android handsets? Please say yes, the day i can walk to work streaming music to my phone will be a very happy one.

[Danny Sullivan]

I truly believe that on-demand streaming is the future of music consumption on mobile devices. With high-speed cellular data networks and WiFi so ubiquitous, on-demand streaming makes total sense. No syncing with a PC, no DRM licenses to worry about-- two of the biggest pain points in bringing music to mobile devices. It's one of the reasons Pandora is so successful...but what's missing from Pandora is the ability to stream specific songs on-demand. I'm sure there is some resistance with the labels for fear of it cannibalizing music sales and their track record is fear of change to traditional business models. Labels should learn to get behind technical innovation early and collectively advance the industry with the help of technology. Maybe shift some of the cash from promoting your mainstream artists to supporting technology that helps consumers discover new music/artists...just a thought. My fear with this is that the labels will try to squeeze so much money for this that it will be unsustainable financially for on-demand streaming providers such as Napster...lets see what happens.

[Ted Maghacot]

I agree with LB...although it will stream to smartphones, what about us who do not have data plans and have nothing but a zune (soon to be zune hd) or an ipod touch? An addition of napster streaming access to wifi-enabled MP3 players (such as the ipod touch and zune) will help napster grow.

[tastyllama]

I actually just submitted this recommendation in the survey. Can't wait. It seemed like a large gap in the portfolio of Napster. XM, Pandora, etc already do it.

[LB]

YES!!! Streaming to the Ipod Touch would be the absolute best improvement to Napster in years!