Napster (pay service)

This article is about the discontinued paid service branded as Napster. For the obsolete peer-to-peer music sharing application, see Napster. For the current Napster platform, see Napster (streaming music platform).

Napster, LLC

Company type	Subsidiary
Industry	Online music
Predecessor	PressPlay
Founded	March 2003 (2003-03)
Defunct	November 2011 (2011-11)
Fate	Purchased by Rhapsody International Inc.
Headquarters	Los Angeles, California, United States
Key people	Mike Davis, CEO
Products	Napster Napster to Go Napster MP3 Store
Revenue	Increase$111.08 million USD (FY 2007)
Net income	Template:Loss$36.83 million USD (FY 2007)
Number of employees	138 (2007)
Parent	Roxio (2003–2008) Best Buy (2008–2011)
Website	www.napster.com

Napster, frequently referred to as "Napster 2.0", was an online music streaming platform and digital music marketplace introduced by Roxio in 2003. This incarnation utilized the brand and intellectual property of the original free peer-to-peer file sharing software Napster, which ceased operations following bankruptcy in 2002 amid legal challenges initiated by the RIAA. Roxio acquired both Napster and the streaming service PressPlay in 2003 to establish a legitimate digital music platform offering users subscription access or individual song purchases. Subsequently, ownership transferred to Best Buy, before the service was ultimately purchased by competitor Rhapsody in 2011.

History

Under Roxio ownership

In 2002, Roxio acquired the original Napster's assets through its bankruptcy auction, followed by the purchase of PressPlay in May 2003 for $40 million. After merging these platforms, Roxio introduced a redesigned Napster in October 2003, offering users the option to either buy individual tracks or subscribe for unlimited monthly downloads and streaming media access. Additionally, the service allowed users to explore other members' music collections and share playlists.

Napster-branded MP3 player

Further information: Samsung YEPP § YP-910

Shortly after unveiling the updated Napster service, Roxio collaborated with Korean electronics manufacturer Samsung to develop a Napster-branded MP3 player. The device, called the Samsung Napster YP-910, featured a 20GB hard drive and provided up to ten hours of playback powered by a lithium-polymer battery. It utilized a customized version of Napster software along with specific drivers to transfer DRM-protected content onto its internal storage.

Free Napster service

In May 2006, Napster introduced Free Napster, a complimentary, ad-supported online music player that allowed users to stream full-length tracks from its extensive library of over 8 million songs up to three times each without requiring software installation or subscription commitments. Users also had the option to buy DRM-free MP3 files. This free streaming service was discontinued in March 2010.

Under Best Buy Ownership

In September 2008, following the launch of its Insignia series of portable media players, Best Buy purchased Napster for $121 million. At that point, Napster was facing substantial financial losses due to emerging competitors and had around 760,000 active subscribers. By January 2010, after a decline in subscriber numbers, the role of CEO, then occupied by Chris Gorog, was discontinued.

Acquisition by Rhapsody

In 2011, the music streaming competitor Rhapsody International acquired Napster. By June 2016, Napster's San Francisco location was shut down as part of an organizational restructuring, which also involved staff reductions. At the same time, Rhapsody announced it would adopt the Napster name for its brand, citing greater international recognition of that name.

See also

• Windows Media Player
• Streaming media
• Online music store
• MusicStation
• Comparison of media players