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May 19, 2009

Napster revamps download offering

Gears up for another push at iTunes

By CBR Staff Writer

Napster has introduced a new monthly subscription price of $5 for five unrestricted MP3 downloads and bringing downloads of songs to its streaming service to compete with Apple iTunes.

The streaming-only services were previously available at $12.99.

The company said users would now have unlimited access to stream music from its collection of seven million songs and five free MP3s each month to download.

Chris Gorog, chief executive, Napster, said: We’ve worked very closely with our label partners to come up with a re-engineered economic structure that is a win-win for everyone starting with consumers. Our partners recognise that the way we can all earn value from this is to substantially grow the paid subscription model.”

Gorog said It’s the closest we’ve ever come to the original vision of Napster.

The new offerings could help Napster compete with iTunes as users can transfer and play the songs on their iPods.

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