Napster. Napster permits users to sample music, download tracks, transfer songs to portable devices from 99 cents for singles and $9.95 for an album, users are also able to access online magazines

The technology also allows secure payment online for the downloading of tracks.

Napster permits users to sample music, download tracks, transfer songs to portable devices from 99 cents for singles and $9.95 for an album, users are also able to access online magazines, Billboard charts, music videos, song clips and the ability to email tracks to friends, there is also 50 free commercial radio stations and other benefits available if you subscribe, this is all available from its website.

It offers 500,000 tunes which is slowly growing this is far more than its rivals but for many it is still not seen as vast enough in comparison to what is offered at a physical store.

The benefits Napster brings to the music industry are unparallel as it has revolutionized the music industry, and required the consideration of piracy, intellectual property and copyright all to be considered in terms of the Internet and especially in the entertainment industry.

The difference in the way that the service Napster provides is managed from a business doing a similar thing without the technology is quite considerable.

The technology has allowed Napster to adapt to the changing business environment and the culture that downloading music has brought about, consumers have realized that the cost of music is too high and Napster provides user the opportunity to purchase music for a considerably reduced price as the requirement for a store or packaging has been removed.

The management issues are varied and sizeable.  The technology that Napster is based on and uses makes it very different from a business doing a similar thing in terms of selling music, in terms of a normal store or online retailers selling CD’s.

Napster requires close collaboration with the music industry, in particular to the record labels such as Universal and Sony as there are many issue in terms of rights and ensuring royalties are paid. Hence collaboration with Microsoft, for the use of digital music rights software is vital for this purpose. The use of technology guarantees all downloads are tracked and appropriate royalties paid as intellectual property and copyright are major issues.

It also has to have close collaboration in terms of getting Napster the feature music service on Windows XP Media centre Edition 2004 and also with Gateway. This allows the business to access a wider customer base that may not even consider using Napster.

 

Napster does require expert IT staff, in order to maintain its website, subscription and online payment service, servers and any problems that may arise especially ensuring protection from viruses and hackers which can result in online credit fraud, which has become increasingly a problem. Data protection hence is important for those who subscribe to the service.

For management there is also the day to day management of the website, which requires knowledgeable, staff in this area and also staff that know how to update the database and catalogue of music and solve any encountered problems.

For management it is clear that providing services that go beyond the ability to download music online at a cheaper price is important, as online music piracy still continues with programs such as Kazza or Limewire, and with the attitude of ‘It doesn’t feel right paying for music online’ it is important for management to tackle the business side and marketing side requires to tackle to ensure it in turn makes profit. As the technology Napster provides has the benefit of quality downloads which many of these illegal sites do not have and could be an aspect as well as the cheap music availability that Napster could continue marketing itself on.

Napster operates in virtual environment, the internet; it is also moving into a global scale as they further look to develop the business outside Europe. Hence working in a virtual environment and largely on a global scale is also an issue as payment is demanded by credit card and ensuring some form of price stability in the markets it supplies is key

It has changed the way business is done from just being able to purchase CD’s online from the likes of Amazon and waiting for its delivery, it has given users the opportunity to purchase music cheaper and in the convenience of their own homes, but taken this a step further. The real time benefits can not be ignored, as songs can be purchased and listened to, then and there. Users also have the opportunity to hear clips of the songs before purchase if the subscription package is bought.

Napster also gives the opportunity to access message boards and online magazines depending on your taste. The system can also note what is popular as a download and who is downloading and customize options for that user.

        Another tangible benefit that Napster brings is the opportunity for younger kids who have no access to credit cards to purchase pre-pay cards, which give them the opportunity to download a set number of songs.

         Tunes that have been pre-released also give customers a chance to get music before the CD release in stores.

There is also the opportunity to extend to books and movies if Napster is successful in this.

With the increasing benefits of faster download service provided and more users for the service the speed as at to which consumers can get their music straight to their computers will be and incomparable to the time it takes to go  to the store.

The future of Napster must be approached with acution , with the likes of apples itunes and from Coca-cola to wallmart all jumping on the paid online music download bandwagon, the companies to come out victorious will still have to be seen, and survival with the limited profits will also be key,

Napster is providing for future marketing and online distribution of CD's.
- MP3 files have changed the way people sample music in their own homes.
- Parents can screen the music their children are listening to at home

Napster may help boost record sales because users can sample the artist's latest CD's.
- Individuals may choose to participate in an on-line music community. Napster functions include chat rooms, instant messaging and hotlists.
- Users share MP3 files through Napster's use of peer to peer technology.
- Users are able to discuss many different genres of music.
- Artists can promote their music through the Napster site.

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