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Paul Sweeting

Paul Sweeting is the editor of ContentAgenda.com and a columnist for Video Business. He has covered the home entertainment industries since 1985 for Billboard, Variety, Publishers Weekly and other leading business publications. He is based in Washington, DC.


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Paul Sweeting

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Best Buy embeds Napster - September 15, 2008

Most intriguing quote in the Best Buy press release on its planned acquisition of Napster came not from president/COO Brian Dunn but from Dave Morrish, exec VP, connected digital solutions:
We can foresee Napster acting as a platform for accelerating our growth in the emerging industry of digital entertainment, beyond music subscriptions. We’re very excited to add these capabilities to leverage our existing relationships with the labels, the studios, and the hardware providers. We believe Napster will be an outstanding addition to our already robust portfolio of partners and offerings in the digital music space.
Sounds like Best Buy is looking at this as a platform play as much as a subscription music play. Which is smart. Napster Video anyone?

Here's the question: Will Best Buy to play matchmaker for consumers to marry devices with content? Buy a device from Best Buy, add the appropriate Napster service (video/music/game) at the time of purchase. First two months free!

That, of course, would take the cooperation of both content owners and device makers. Apart from the technical issues involved in marrying content and devices--apparently not for nothing was Best Buy the lone retailer among the founders of the Digital Entertainment Content Ecosystem effort--it would require a willingness on the part of content owners to let retailers do their thing and figure out the best ways to satisfy their customers.

As I noted in my previous post, the best thing that could happen to the digital distribution business would be for it to turn into a competition among online retailers/distributors for real estate on digital devices.


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ChiefAlchemist
September 15, 2008
Response to:
Best Buy embeds Napster

Actually, IMHO it sounds to me like Best Buy is drinking too much Kool Aid. $120,000,000 is quite a bit of money to invest in a brand like Napster. Has Napster ever made money? What personnel and technological cards can they be holding to pay such a premium for? I agree that competition is a good thing. It always is. But even the likes of Phelps, Bolt, etc. don't compete by tying an anchor around their waists. What am I missing here?




Media Wonk
September 15, 2008
Response to:
Best Buy embeds Napster

What you're missing, and I should have noted, is the $67 million in cash and short-term investments on Napster's balance sheet, making the real price of the deal for Best Buy only about $54 million.




Wendy
September 26, 2008
Response to:
Best Buy embeds Napster

NAPSTER SERVICE IS SOOO DISHONEST!!. I went on naptster to purchase a few songs and they used my credit card info to sign me up for a “free trial” which I didn’t know I was signed up for until 3 months later! - I told them that I didn’t want the membership and to refund me but they wouldn’t do it . Extremely dishonest people.