Napster gives away mp3 players
17 June 2004
The now-legal song-swapping platform Napster is offering free mp3 players to customers taking up a one year subscription to its service.
On its website, Roxio's Napster said it would give customers a Rio Chiba Sport portable music device, worth about $130, if they signed up to Napster for a whole year. A year's subscription costs $119.40.
The 128mb player can be upgraded for an extra $80.
PJ McNealy, analyst with American Technology Research, said: "This is another example of Napster trying to be creative to drive Napster subscriptions."
However, even with such promotions, Mr McNealy is not sure that Napster can break even.
"While Roxio has forecast up to $40 million in Napster revenues this year, we believe that they really have to reach close to $300 million to break even and reaching that goal will likely not happen in the next 12 months," he said.
U.S. consumers have visited Napster to purchase over 10 million tracks to date, according to the company.
Napster's promotional offer is the latest example of cross-promotion in the sector, with McDonald's signing up with Sony Connect to give away mp3s in its restaurants, earlier this month.
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