Napster Profiteering?

[admin_exported]

Hi Guys, not sure if this has been discussed to death before, but was checking out Napster with a view to buying their "to go" package - then I saw their non UK deals!!

What's the game with Napster charges?

North America - $15 USD per month + a free MP3 player if you sign up.

Europe - 15 euros a month

UK - £15 GBP per month.

What marketing genius thought this was a good idea, or maybe Napster just figured most British are daft enough to spring for it?

Well I won't be giving (on principal) nearly twice what our US cousins pay - however I probably wouldn't mind paying the same.

What's the forum view - and anyone know if there is there a pressure group I can join?

(I can already feel an acorn of resistance to all things Napster, maybe with some further discussion, we might have a few saplings, and with enough interest maybe even a small forest of oak)

(I think the great british public would be interested in Napster worldwide pricing, then we can all make an informed decision on value for money. Goodness knows, with a fair pricing model they could massively increase their market share - I work with university students and this product is right up their street, just overpriced - a straw poll suggests that up to £2 per week seems ok, but the "to go" element is critical for their personal music - maybe a student card deal would go part of the way)

 

[fatboyslimfast]

I have been a napster subscriber almost since it's new legal inception.

For me, £10 a month to listen to as much music as I want to (and download it onto my main PC, netbook, for the car, and 1 other) is absolutely brilliant. Think of it as Spotify Premium, but that you can listen to offline.

I'm guessing that other people are also of a similar mind.

As for the "to-go" option, a netbook running Windows ( sub£250) will provide this. I tend to use this to "1st listen", and then if I like the album enough to warrant putting it on my iPod/iPhone, buy the album on CD so I can rip losslessly.

Another thing to consider is that in the US, Napster has to pay ASCAP/BMI/SESAC etc, whilst in the UK it is the PRS. Their fees may well be different.

Horses for courses obv, but the £10 a month suits me fine. Wouldn't bother with the £5 extra though.

 

[John Duncan]

They are (generalising), but not £15/$15 different. But it's not relly profiteering, it's just a different economic model. Things are cheaper in the states, they just are.

 

[fatboyslimfast]

And, if you don't agree, vote with your feet! They are a profit-making business after all, not a public service provider!

 

[Clare Newsome]

The point about different licensing fees is also a very relevant one - it's a maze of different ownership/right legislation in different countries. US tends to be cheaper due to economies of scale - several million more people hearing your song for less cents makes you the same/maybe more money than fewer UK ears paying more pennies....

 

[John Duncan]

The wikipedia article on royalties is very interesting for those who have the time...

 

[idc]

fatboyslimfast:...... For me, £10 a month to listen to as much music as I want to (and download it onto my main PC, netbook, for the car, and 1 other) is absolutely brilliant. Think of it as Spotify Premium, but that you can listen to offline....

Buy Spotify for the year and it works out at £8.25 a month and it has now been approved as an application for the iphone

http://whathifi.com/News/UPDATE-Spotify-app-for-Apple-iPhone-is-approved/

and I am sure it is a higher bit rate than Napster. Go Spotify!

 

[chebby]

Clare Newsome:The point about different licensing fees is
also a very relevant one - it's a maze of different ownership/right
legislation in different countries. US tends to be cheaper due to
economies of scale - several million more people hearing your song for
less cents makes you the same/maybe more money than fewer UK ears
paying more pennies....

And 15 percent VAT.

Doesn't explain the whole difference.

iTunes downloads in the USA are 69 cents, 99 cents and 1.29 dollars.

Here in the UK, iTunes track downloads are all 79p ($1.28) so we are paying the 'premium' USA rate for all single downloads.

UK album downloads are usually £7.99 ($12.98) and in the USA the typical price is $9.99 so, again, a $3 premium this side of the pond.

This is normal in most situations where you compare CDs, LPs, books, camera gear etc.

By the time you have paid for P&P and VAT and duty (where applicable) it is usually better to buy locally. (Also most 'hard' goods in the USA only have a 90 day warranty compared to our 1 year.)

You only have to compare their lower taxes and fuel costs to begin to see why this gap exists.

Worth bearing in mind that - for example - a degree educated, trained, commerical jet pilot on internal domestic routes in the USA can actually qualify for food stamps for the first couple of years of their career until their rank and experience increases. A London Tube driver can earn three times as much!

 

[idc]

UK holiday entitlements also tend to be better than in the US. New employees often start on no holidays outwith the public ones such as Labor Day, Thanksgiving and Christmas.

Of course we are just going to get more expensive again as fuel duties rise and VAT returns to 17.5 %.