Archive of UserLand's first discussion group, started October 5, 1998.

Napster Business Model

Author:Eric Soroos
Posted:6/26/2000; 3:53:49 PM
Topic:Napster Business Model
Msg #:18122
Prev/Next:18121 / 18123

A comparison: Used record store vs Napster

  • Neither results in royalties to artists/RIAA
  • Used Record stores buy an apparently unlimited supply of albums, then resell them. Napster allows access to an unlimited supply of songs.
  • Both turn people on to music that they would not otherwise buy, at prices that are less than a normal retail cd.
  • Used record stores have a markup, and their cost of sales are not nil. Napster has no markup, nor does it have cost of sales.
  • Used record stores have turned a profit, and they deal in real world goods.
  • Used record stores have a better selection of non-popular music (at least in seattle, and compared to a couple recent napster searches over the weekend)
  • The RIAA would rather not have either of them in existence



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