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Beleaguered Napster’s CEO Gorog calls Apple’s iPod, iTunes Store ‘anti-consumer’
Wednesday, January 31, 2007 - 05:09 PM EST

"The majority of consumers have not yet accepted the subscription model to rent rather than buy music but this is likely to change over the next year, according to the head of the online service Napster Inc.," Kate Holton reports for Reuters.

MacDailyNews Take: Hope springs eternal. It's always going to change "next year" for the Gorog types. People don't want to rent music, they want to own it.

Holton continues, "Once synonymous with piracy in online music, Napster now offers music via a subscription service but it is hindered by the dominance of Apple Computer's iPod which, due to a rights management issue, cannot play Napster music. Napster Chief Executive Chris Gorog told Reuters that Apple's approach was 'anti-consumer' and had held the subscription model back."

MacDailyNews Take: Gorog is a moron. As the market has proven: people don't want to rent music, they want to own it.

Holton continues, "But Gorog expects the picture to change as consumers turn to mobile phones that also operate as MP3 players..."

MacDailyNews Take: Do the math. People who care most about music on mobile phones are salivating over Apple's iPhone with which Napster will be incompatible, too.

Full article here.

[Thanks to MacDailyNews Reader "amp" for the heads up.]

Related articles:
Beleaguered Napster hires UBS to evaluate possible company sale - September 18, 2006
Beleaguered Napster circles bowl, subscribers drop 7 percent, Gorog won’t rule out sale of company - August 03, 2006
Free, legal and ignored: Mac- and iPod-incompatible beleaguered Napster dying at colleges - July 06, 2006Napster CEO Gorog blames Microsoft for failure to compete with Apple’s iTunes Music Store - March 01, 2006
Napster CEO Chris Gorog has 'secret plan' to help beleaguered company become profitable - February 09, 2006
Google: no interest in Napster, no plans to develop music store at this time - January 31, 2006
Napster does the math: layoffs commence with 10-percent of workforce lopped off - January 25, 2006
EMI Music Chairman: Music subscription services like Napster and Rhapsody haven't beeen huge - January 23, 2006
Napster CEO Gorog: 'we are extremely excited about the future' - January 18, 2006
Report: Napster executives do the math, consider selling or shutting down, layoffs imminent - January 16, 2006
Napster CEO Gorog: Apple iPod is a 'villain' - December 12, 2005
Do the math: Napster posts $13.6 million second-quarter loss - November 02, 2005
Napster President: Apple CEO Steve Jobs has 'tricked people into buying a hardware trap' - August 22, 2005
Apple's roadkill whine in unison: 'incompatibility is slowing growth of digital music' - August 12, 2005
Napster: the only thing missing is the sock puppet - August 04, 2005
Napster, other Windows Media-based music services 'chasing a niche opportunity' - June 29, 2005
SmartMoney: Napster is a snooze, gushing money and renting music is un-American anyway - July 06, 2005
Napster To Go Soon? Reports $24.3 million net loss on $17.4 million net revenue - May 11, 2005
Napster is a joke - April 05, 2005
Napster CEO Gorog: Steve Jobs 'must be pretty frightened' of Napster To Go - March 14, 2005
Napster's math does not add up - February 28, 2005
Users thwart Napster To Go's copy protection; do the music labels realize the piracy potential? - February 15, 2005
Napster CEO Gorog: 'it's stupid to buy an iPod' - February 10, 2005
$10,000 to fill an iPod? Napster's going to end up with egg on their face - February 04, 2005
Why 'Napster To Go' will flop - February 03, 2005
Napster CEO: We're 'the biggest brand in digital music, much more exciting than Apple's iTunes' - February 03, 2005
The de facto standard for legal digital online music files: Apple's protected MPEG-4 Audio (.m4p) - December 15, 2004
Napster CEO: 'it would be great' if Apple iPod supported WMA - March 09, 2004
Napster CEO: Apple iTunes, iPod 'consumer-unfriendly experiences' - March 09, 2004
Napster 2.0 posts US$15 million relaunch loss - February 08, 2004

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Jan 31, 07 - 05:17 pm Comment from: wandering joe

What a dweeb. I hate renting anything, of course that doesn't make it universal, but anyway...

Jan 31, 07 - 05:17 pm Comment from: Gorog Spelled Backwards Is Gorog

Me Gorog. Gorog hate Apple and iPod. Gorog want to crush Apple.

Jan 31, 07 - 05:17 pm Comment from: turk182

Napster, Swirling the Bowl.

Jan 31, 07 - 05:27 pm Comment from: Macaday

How long is it taking for this outfit to die and disappear...?

Jan 31, 07 - 05:29 pm Comment from: mudflapper

Nap who?

Jan 31, 07 - 05:31 pm Comment from: realist

If Apple were to offer a subscription service, does anyone think it would be a complete failure? Perhaps, but at this point, no one can say for certain. And until it's tried, you can't definitively say that "people don't want to rent music." People rejecting a service that doesn't work with the vast majority of portable music players sold is not really a true indication of what consumers may or may not want.

Jan 31, 07 - 05:33 pm Comment from: DudeMac

Ain't that the pot calling the kettle black! How is Napster in any way "pro-consumer"; the freakin service is Windows-only! It can't get anymore anti-consumer than that (other than that Zune thing):-P

Jan 31, 07 - 05:36 pm Comment from: alec

I didn't know Napster was still in business. It looks like they're still losing money

Jan 31, 07 - 05:39 pm Comment from: Viktor

This is so funny, One of the biggest "Once synonymous with piracy in online music" is now telling to the biggest legal music seller (number 3) in the world that his approach is 'anti-consumer’. That is really funny. May be Those napster guys are trained by Microsoft, they see everything backwards.

Jan 31, 07 - 05:39 pm Comment from: Gorog

Me Gorog. Me be bankrupt soon. iPod bad. iTunes worse.

Jan 31, 07 - 05:42 pm Comment from: Buster

Looking at teh Napster regulations these two choice morsels are probably the primary reasons why Napster is beleaguered (or should that read buggered?).

1) If you wish to burn Downloads to CDs or transfer them to compatible portable devices you will need to pay for them as Purchased Tracks.

2) .... in order to play any Download after the end of a Subscription Month, you must log on to the Service so that Napster can renew your rights for those Tracks.

If I want to play them in my car CD player or put them ion my iPod, I have top pay for each track even though I bought a subscription? I also have to check in each month likle someone out on parole?

Stupid stupid stupid....and they wonder why it is not taking off.....

Jan 31, 07 - 05:42 pm Comment from: Mr. Peabody

Sticks and stones Mr. Gorog, sticks and stones...

Jan 31, 07 - 05:46 pm Comment from: Don

Actually, I think it would be pretty cool to have a music sampler option where I could periodically purchase a key which would allow me very limited rights to a certain number of songs. Let's say that for $10 I could download 50 songs which could only be played three times before expiring. If I like a song, then I could mark it for purchase.

If Apple introduced this option, I think they would destroy the main selling point to subscription plans.

Jan 31, 07 - 05:52 pm Comment from: macromancer

" Napster now offers music via a subscription service but it is hindered by the dominance of Apple Computer's iPod which, due to a rights management issue, cannot play Napster music."

No, it's hindered by the fact that the vast majority of people do not want to pay in perpetuity for their music, and would rather pay once.

And furthermore what is stopping Napster from developing a software program for the iPod that would essentially replace iTunes? Nothing.

Sour grapes. Bitching and whining.

DIAF Gorog.

Jan 31, 07 - 05:59 pm Comment from: tt

Buying the name 'Napster' and trying to use it to make money makes just about as much sense as buying the name 'Enron'


ATTN PEOPLE WITH TOO MUCH MONEY: YOU CANT TURN BACK TIME.

Stop trying to collect lost revenues on a illegal company that you didnt have anything to do with.

talk about anti consumer.. trying to trick us by using that name...

Apple is anti consumer just about as much as walmart is pro consumer.

these fuks just dont get it.

Jan 31, 07 - 06:03 pm Comment from: DogGone

Compete dude. That's the lesson Apple learned after years of wallowing in their own superiority.

Make a better product then maybe others will buy into it. If the players are bad work with the manufacturers to improve them. Same goes for the software.

Fact is Apple invested a lot of time and money making the whole widget. And it worked. Not anti-competitive business here, just good product design.

There were a ton of MP3 players before Apple joined in. Apple just made better products and provided a better service.

Jan 31, 07 - 06:05 pm Comment from: Zune Tang

This guy's right. iPod and the iTunes store sucks ass. Hey iPod lemmings: YOU ARE BEING RIPPED OFF!

I love the Napster integration with my Dell Ditty. It's a close second to Zune Marketplace and my Zune. What I really like is the subscription model. The IT guys at work said paying for individual tracks or albums is for suckers. You can get a lot more if you go with the subscription. More is always better.

Welcome to the Social.

Jan 31, 07 - 06:17 pm Comment from: tt

^^^

Thats either you TRYING to be funny, or you got paid for the post..

Using windows is for idiots.

Using a Zune or a Dell device for music playback only makes sense if you got the device for free. and if it was me it would have been long gone to some schmuck like you on ebay.

Jan 31, 07 - 06:21 pm Comment from: AG Pennypacker

Napster is anti-sucess

Jan 31, 07 - 06:25 pm Comment from: what

is "anti-consumer" is the awful the hardware, software, and integration of the Plays For Shit partners.

Jan 31, 07 - 06:35 pm Comment from: mudflapper

DogGone,

Nicely put, sir.

Jan 31, 07 - 06:47 pm Comment from: montex

Somebody please kill Zune Tang. He's making my eye bleed!

Jan 31, 07 - 06:55 pm Comment from: john

If iTunes is so anti-consumer then why is that iTunes owns 80% of the consumer marketshare? Why is it that iTunes is the only PC/Mac friendly online store on the net to date. This guys got a whole in his head apparently.

Like the rest of the consumers, I don't want to rent my music. I want to know that when I wake up tomorrow my music is in my control not Napsters or anyone else for that matter.

Napster is a failure and Gorog should just shut it down as his insults won't help anything.

Jan 31, 07 - 07:43 pm Comment from: Big Al

What the hell makes Gorog think the Telcos will be any more open than Apple?

Gorog, you wanta rent tunes for cell phones?

Make the Gorogphone and talk to and talk to the cell phone companies just like Apple did.

Good luck with that.

Jan 31, 07 - 07:45 pm Comment from: Georgy Porgy

Gorog, I have a one-click account. I click once to select the song, then I click buy and the song downloads in about fifteen seconds.
When you get out of denial and make Napster that easy, then you might make some money. Putting down the company that sets your
standards for you is not going to get your company anywhere. Instead, you should be criticizing M$ for not having a decent product and
for coming out 5 years too late. The key is the quality of the hardware product and the simplicity of buying songs...don't you get it?

Jan 31, 07 - 07:47 pm Comment from: Gorog

Gorog not too sharp. Gorog not think of that. Gorog waste more money to get Telco business. Telco not want to share with Gorog. Gorog screwed by PlaysForSure first, Telco later.

Jan 31, 07 - 07:56 pm Comment from: Ozzy

Gorog needs to get in touch with reality.

People don't want to rent music. They want to own it.

People want to rent *movies*. Maybe we should be talking about movie rental/subscription services in iTunes.

Heck, I pay for Netflix... you better believe I'd ditch that gig, buy an TV (AppleTV in case that doesn't display), and sign up on an iTunes movie rental service any day of the week.

Napster's just pissed because they got screwed upside the head by MicroShaft. And Apple's (supposedly) the one that can't work with other companies...

Jan 31, 07 - 08:09 pm Comment from: alansky

The thing is, Mr. Gorog, those "anti-consumers" sure are buying truckloads of music and video from the ITMS. They don't look too deprived to me!

Jan 31, 07 - 08:13 pm Comment from: alansky

I can't think of any other industry in which the losers whine like
spoiled little children and throw rocks at the winners.

If I could give a few words of advice to Apple's competitors
everywhere, I would say: "GROW UP!"

Jan 31, 07 - 08:45 pm Comment from: Fanatic Realist

Dear Mr. Gorog,

Here's all the things you haven't worked out yet…

1) The iTunes platform is successful because it is easy for the consumer to understand: a family of players, a single unified jukebox to import, manage and burn content as well as manage the players, a single well-designed store with a simple pricing mechanism and rights-management conditions that penalise neither the customer or the rights holder.

2) Apple realises that - for most people - the bulk of their music will already be held on CD. You're only interested in selling content, which means you miss the bigger picture.

3) Apple understands how to design and build an attractive range of digital media devices, whilst there is no beginning to the hardware design skills of many of their "competitors".

4) If Apple's approach is anti-competitive, then you need to have a chat with J Allard at Microsoft: apparently, they've decided that Apple's vertical approach is more attractive than PlayedForSure's horizontal model which must be nice for their former "partners", e.g. you.

5) If Apple's approach were anti-consumer, then consumers are now more than smart enough to work this out and deal with it. Please explain why Apple sold over 21 million iPods last quarter. Whilst you're at it, please explain why it took Apple 1032 days to sell the first billion tracks, but it took only 320 days to report the second billion. Presumably, Apple is putting something in the water. Or maybe those dancing silhouette adverts have some subliminal advertising.

In all honesty, Chris, the whining is getting a little tired now and you really need start focussing on what you're doing rather than how Apple is executing on its own gameplan. Grow up, be a mensch, and admit that your business plan and the underlying model isn't working. Maybe then you'll be able to pick yourself up from the floor and move on.

Jan 31, 07 - 09:36 pm Comment from: Wow

Come on people trying to rant about the ipod wont work on this site. It is Mac Daily news.

Jan 31, 07 - 10:11 pm Comment from: mark

Music subscriptions are anti-consumer. So by association, Napster is anti-consumer.

How do we know? Because the music labels are clamoring for it. Because a subscription brings in monthly revenue without actually giving up anything - no sale or ownership of music.

Do the math. At the end of one year, a subscriber will have paid anywhere from $72 to $300 for a subscription and have no music to show for it, unless he/she ponies up some more dollars.

Jan 31, 07 - 10:13 pm Comment from: Artisticulated

I found an outhouse: ۩ tongue wink

Jan 31, 07 - 10:15 pm Comment from: ken1w

I suppose that if Apple offered a music subscription service, Napster would suddenly be doing great. The fact is, if Apple had a subscription service, Napster would already be out of business. Napster should count its blessings that Apple CHOOSES not to compete with a music subscription scheme.

However, in the wild chance that Gorog is actually right,

"The majority of consumers have not yet accepted the subscription model to rent rather than buy music but this is likely to change over the next year"

then Apple simply implements its own music subscription option for the iTunes Store. And that would be the end of Napster. Apple probably already has that contingency covered, or it may be working on a subscription model for movies (people DO like to rent movies) that can be extended to cover music.

Jan 31, 07 - 10:30 pm Comment from: CaMeL tOad

Hey, Gorog, your cousin called... says he's tired of peddling insurance to keep yer ass afloat!

Jan 31, 07 - 10:53 pm Comment from: SydneyStephen

Zune Tang, Zune Tang, where are you???

I have just read another post on here by Zune Tang and someone who knows Mr Gorog should call him up and tell him not to worry. Zune will come to the rescue now that Apple's bullying tactics in forcing people to buy iPods has been exposed and, as a consequence, iPods sales will plummet next month and Zune will gain 76% of the market by the end of the quarter.

Then can you call me and explain why "it is hindered by the dominance of Apple Computer's iPod which, due to a rights management issue, cannot play Napster music". Is this Apple being a bully again? Or is Napster music somehow incompatible with a device which will happily upload and play any mp3 track?

oh... I have just been advised that this is not at all right. Thank you Zune Tang. Apparently what Gorog is really upset about is that "it is hindered by the forecast dominance of Microsoft's Zune which, due to a rights management issue, cannot play Napster music." You are quite right Zune Tang. Thank you for putting us all right...

ps: What kind of device does play napster music?

Jan 31, 07 - 11:24 pm Comment from: SydneyStephen

ah. Zune Tang there you are.

And thank you for answering my question. I hadn't realised it was that other market leader, the fabulous, innovative and iPod beating Dell Ditty which you can use to play napster music on. Ditty. Why what a catchy name that is.

And Wow ZT. Aren't you the stylish early adopter! First a Ditty, then a Zune and now a proud Vista owner. You must be really plugged in to market trends. Dell Ditty - i don't think we have that one in Australia. I am sure it will come though.

Oh its not coming downunder? No Ditty? Damn! You guys get all the best stuff. Come to think of it I don't think I've see a Zune here either... Damn. We do get stuck with all the old stuff don't we.

Dell Ditty. Gotta love that name. Dell... Gee, now there's a company that's doing well... Some famous guy just joined them as CEO. Michael someone. Oh, they don't make the Ditty any more? Dear dear. It's a risk - sometimes a product is just too early for the market. Perhaps Michael will bring it back now. Do you think we are ready for it ZT? Will Ditty rise from the ashes and WOW us all?

ps: Come on, tell the truth ZT, it was you in the front of that huge queue in London racing to buy Vista at midnight. WOW WOW WOW... That must have been SO EXCITING. I know it was ZT - that brown stain on your pants is a dead giveaway. And I am sure there was a lot of excitable pointing and squirting going on! Wow! Wow! Was that your Mum at the back of the queue? I think it was - those supercool Ditty headphones are a dead giveaway... That poor guy in the middle though - he was missing out on all that squirting. Left his Zune behind did he? He probably left his Ditty in the car too. Oh the Ditty doesn't squirt? That's sad ZT.

pps: My lawyers just called me to tell me I can't say WOW on here. Apparently Microsoft have the word "WOW" covered by 56,789, 675 patents. You can only use WOW when looking at gorgeous open vistas. Or something like that.

WOW. (Oh aren't I the cheeky one). WOW WOW WOW WOW...

Sorry got carried away with all this excitement. Ditty zuney nappy squirty... Its enough to make the blood rush to your head. really it is. WOW WOW WOW WOW.

Feb 01, 07 - 12:10 am Comment from: Stuart

Average Joe and Jane consumer generally doesn't want to rent music or music videos. They many want to rent then maybe own movies and TV shows, if they love it enough.

However, renting music does make sense for a large number of customers, namely those who require 'piped' music - gyms, supermarkets, shopping centres/malls, building foyers and lifts, hold music, airport, coach and rail lounges, hospitals, medical centres and doctor's surgeries, etc. For these types of businesses and organisations, it doesn't make sense to own the music, unless you want to hear the same things over and over again.

Come to think of it, hearing music over and over again is what happens now with rented music on physical media.

So I think Apple should branch out into the subscription model by taking this completely different approach to everyone else, in typical Apple style.

Feb 01, 07 - 12:29 am Comment from: SydneyStephen

Hey Stuart - you might have a point there with the rental approach for the retaill stores. however i think they are well catered for by specialist retail music providers. the stores i know have their music downloaded to their stores by the vendor - and this allows for proper compensation to the copyright owners... I am sure you have this in the USA.

Feb 01, 07 - 01:01 am Comment from: Again... Not a troll...

But you guys are delusional. If you have ever used the new Napster (and similar services) you would know THIS:

499-1599 per month- UNLIMITED LISTENING
about the price of one CD per month ( most people probably buy a CD a month ANYWAY except they can listen to millions of tracks instead of 15)

AND you can usually buy the track for 79 CENTS (20 cents cheaper than iTunes) and burn it and own it

People aren't dumb becaus they have a different view or have a hard time figuring something {new} out (as you should know) or are supporting their company's model (i.e. as you claim the Napster rep to be)

ALSO: Napster has nowhere near the about of advertising/publicity of iTunes+iPod

and most people have incompatible players

and there is no way to prepay (for kids who don't have CCs)

and the players Napster works with aren't that great

SO HOW CAN YOU SLAM THIS NOTION. THE MARKET CERTAINLY HAS NOT SPOKEN/

Feb 01, 07 - 01:16 am Comment from: Gorog

If market want Gorog rental music, Gorog not have to whine about Apple.

WHY I DON'T WANT TO RENT MUSIC.

It's DRM issues on steroids. Suddenly Universal wants more money and 40% of my music goes away. That's the real issue with subscription--gives tremendous power to the labels.

But then I'm one of those old farts who already owns much more music (legally!) than he has time to listen to.

There's music one "owns"... we call it a "collection". It's mine even if I go broke or bankrupt because it's already paid for (and if I'm broke or bankrupt, I'll f*ing NEED it!).

Then there's music one just listens to without owning. It's call radio.

I suppose if I were 12 and had no collection, I MIGHT feel differently. Then again, when I was 12, the bits of music that I owned were my most prized possession. And iTS has brought back the single. =)

Feb 01, 07 - 03:03 am Comment from: Peter

I'll say it again. Mr. Gorog is yelling at the wind when he tries to take on iTunes.

First, give up trying to compete with the iTunes Store. You're losing and you'll lose more. No "anti-consumer" comments will change peoples' minds. They love their iPods and, while they might not care that much about the iTunes Store, it's not a big enough deal for most people that they're going to give up their beloved iPods.

Instead, target the people who are already paying for subscription music: Satellite Radio.

Part of the "problem" with subscription services is the Paradox of Choice. I can download whatever I want, but most people don't want a lot. Heck, I just looked at my "Purchased" list in iTunes. I've downloaded 243 songs from the iTunes Store over the last three years--not a heck of a lot. They're all songs that I like, though, that have entered my head or that I've heard of from other people or were suggested in the iTunes Store.

I'm certainly not going to pay $14.99 a month just to listen to those songs.

I don't know what I'd do with the ability to download any song I wanted. One of Napster's ads said I could "fill up my iPod." Well, I don't know enough music to fill up an iPod. Heck, just from my iTunes Store purchases, I could barely fill up an iPod Shuffle! It's just not worth it.

So, how do you make it worth it? Make the choices for me.

Set up your subscription service like satellite radio. Break the music down into genres and let people download the genres. Do lists from Billboard, Radio & Records, and the other music industry trades and let people download, say, Billboard's Top 40 every week. You manage it for them.

Get some news, sports, weather, and other podcast type material based on the region that people can subscribe to as part of their $14.99. Manage it for them so they get the latest info.

Tie it in with the devices somehow--I don't know if those devices support playlists or not, but that's basically what this is. So I hook up my MP3 player and Napster automatically dumps the latest additions from the Billboard Top 40 onto my player where the genre is not rap. It would remove stuff from the player that has fallen off the Top 40 (perhaps it will ask me). It will update my news, sports, weather, etc.

In other words, it'll be alot like satellite radio. Commercial-free music, etc. But--to use a line from TiVO--you're the programming director. You decide what types of music get downloaded. You decide what sort of news you want. You're in charge!

Then market it like satellite radio. The latest and greatest music--all random access. Don't sit through a song you don't like anymore--just hit the next song button. News, sports, weather--customized for your area! Not just national news like satellite radio. And it's all commercial-free! Take all this with you with a compatible portable player. Fine, you might like your iPod to listen to your favorite music, but this is more like downloadable radio.

Like I said, going up against Apple and the iTunes Store is a waste of time. Create compelling content and people will be interested.

Feb 01, 07 - 03:11 am Comment from: yet another steve via iPodDailyNews

I almost forgot...

Gorog... Welcome to The Social (darwinism).

MW: brown (I guess in silent tribute to the missing ZuneTang)

Feb 01, 07 - 11:33 am Comment from: botox

Gorog? Bah ah ah ah ... don't waste my time, next!!

Feb 01, 07 - 01:50 pm Comment from: John R

Napster from a Mac

"We're Sorry
You must be on a PC running Windows XP/2k to download and purchase music or subscribe to Napster."

F***ing Hypocrite!

Feb 01, 07 - 04:02 pm Comment from: SydneyStephen

@John R

That is HILARIOUS!

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