Napster Acknowledges Yahoo is Cheaper

May 17, 2005

Interesting news from the Napster camp.

Reuters reports that Napster CEO Chris Gorag told fund managers yesterday that they do not plan to cut their subscription prices in the face of Yahoo’s new offering.

“We are not positioning our product as a discount product. I think
Yahoo has,” said Gorog, referring to advertising in the Yahoo service.
He was speaking to fund managers at the J.P. Morgan technology
investment conference.

Hmmm… Okay, so they both offer essentially the same service, Napster claims to have a million tracks, Yahoo claims over a million. Napster is $10 – $15 a month, Yahoo is $5 a month.

So they’re a discount service — yet there seems to be no differentiation, other than they’re cheaper. Tough choice.

I’m not going to be using either any time soon (another good reason to own a Mac), but if I was shopping for this service, this looks like an enormous no brainer.

Let’s see, that’s two lives down for the cat with the headphones, right?