Napster's ghost rises - March 6, 2006
Steve Jobs helped save the music biz from file sharers like Shawn Fanning and Wayne Rosso. Now Fanning and Rosso--the creator of Napster and former president of Grokster, respectively--want to save the labels from Jobs. Apple's iTunes store practically created the music-downloads business, and according to NPD controls 70% of online sales. Says Rosso: "Steve Jobs has them by the balls."
Do you think Eric Nicoli or Edgar Bronfman Jr would be any more comfortable with Wayne Rosso's hands grabbing for their testicles?
The mere fact that labels like the subscription model should give customers pause. Subscription is far too benign a word for it. When I subscribe to a magazine, I get to keep what I bought even after I've let my subscription lapse. The deal the record companies are offering isn't like that: they want to keep your music tethered to your bank account or credit card. When the cash stops, so does the music. Unless, of course, you "buy" that music for a second time, affording you the privilege of a persistent file on whatever device they think you should be allowed to use.
In fairness, Apple's FairPlay DRM has some of the same potentially restrictive features. At any point, Apple could decide that the songs you buy from iTunes Music Store can only be synched to five iPods (right now, it's unlimited).
Anyway, label execs shouldn't be turning their heads and coughing for Dr Rosso any time soon. The one thing Napster can't do is get their rental model to work with the iPod player. Advantage, Apple.
