The details are not disclosed, but it looks like Rhapsody has come to an agreement with Best Buy to take over Napster service. Of course, this is Rhapsody’s attempt to counter the surge of users on Spotify.
Napster was founded in 1999 by John and Shawn Fanning. Of course, issues arose with the downloading of illegal music, which was brought to the forefront by the band Metallica. The peer-to-peer sharing site went bankrupt in 2002, then sold their assets to Roxio, who then sold the company to Best Buy.
Rhapsody has also been in the music space since 2001. Their music streaming service has gone through a few changes, but survived for over ten years. So when Spotify brought a surge to the online streaming service category, it would make sense that Rhapsody would want to counter.
“This deal will further extend Rhapsody’s lead over our competitors in the growing on-demand music market,” said Jon Irwin, president, Rhapsody. “There’s substantial value in bringing Napster’s subscribers and robust IP portfolio to Rhapsody as we execute on our strategy to expand our business via direct acquisition of members and distribution deals.”
The only thing we know from the details is that Best Buy will still keep a stake in the company. That could become a great marriage for Rhapsody, because Best Buy has been known for putting bundles into their product sales. Getting someone on a service for a couple free months and hope they don’t cancel the membership when the time comes.
Currently, Rhapsody and Napster are the two largest on-demand music services. With the acquisition, they will be able to run against Spotify and the Facebook integration.
The deal will be finalized on November 30th.
The air is electric with heady excitement. The big day has finally arrived. “This one will be nirvana!” you tell yourself. As you enter the doors and walk down the isle, there she is waiting at the altar, all decked out in a one-use dress. Your heart races with anticipation.
There’s your dream — waiting there for you, with a pre-nuptial agreement in one hand and divorce papers in the other, complete with fine print written in legalese.
For some of us the marriage is a happy one. For others it is a marriage of convenience. And for a small number the marriage ends up going sour and costing them a bundle of money.
Am I talking about a wedding? No, I’m talking about the trip to the cell phone store.
We tend to get all excited about the latest phone models, comparing this feature set with that feature set, this screen with that screen, etc. Once we make a decision and our heart is set on a specific device, we eagerly sign the contract and end up married to a cell carrier for the life of the contract.
Devices aside, the big U.S. carriers have been making constant improvements to their networks. It’s a huge job, but there’s a lot of future money at stake.
In the realm of cell phones, I’ve always found it fascinating and somewhat telling how people will bounce from one cell carrier to the next, seemingly on a whim. If it becomes chic to talk bad about a specific cell carrier, it seems that a lot of people will change cell carriers the same way some people will worry about saturated fats or the latest diet fad.
And now we have the iPhone 4 and it’s purported antenna problem story of the past few days. At this point Apple has sold more than 3 million iPhone 4’s and the vast majority of iPhone 4 users have been happy with their new phones. Yet I find it interesting that all of this media attention about antenna problems has put doubt in the minds of some iPhone 4 owners.
That new spouse might be cheating on you…