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February 03, 2005
Napster Schmapster
All I have to say is GOOD FRIGGIN' LUCK. I could be wrong, but my sense is that people will remain music collectors. Renting music for 30 days? Unlike the Netflix model, where you can copy movies and therefore still build your collection, the "Napster to Go" service only lets you "rent" them, and it's based on you still having to purchase tracks to burn them to CD or to not have to renew your lease on them every 30 days.
I also have yet to see anyone take into account the level of brand loyalty involved in Apple's 70% market share (in the MP3 arena) - or with Apple products in general. People who use Apple products know they are paying more than market price and have decided, for whatever reason, that it's worth it. No amount of of offers or discounts could sway them from this decision, b/c it was not similarly motivated. I've also yet to see marketers take this into account when advertising to this group. Could it not be argued that an eyeball in this prone-to-loyalty group - if you can speak to them correctly - might be worth 2 or 3 of the general public? Kind of like vertical/behavioral targeting, only actually, better?
Posted by nikl at February 3, 2005 01:16 PM
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