More blood on Apple iTunes Store’s play button: AOL Music Now folds

“This morning, Napster sent out a press release saying it is forming a partnership with AOL to integrate itself into the AOL Music site, and AOL is scuttling the Music Now service. Music Now subscribers will be migrated over to Napster automatically unless they opt out, and their catalogs will be replicated by Napster,” Kyle Monson reports for AppScout.

Monson reports, “Napster’s got a solid subscription music service that’s never been able to make any money (in fact, last I heard it was up for sale, and I assumed it would either be gone or acquired in the near future). And AOL’s never been able to gain much traction with Music Now, despite it being an excellent service with one of the best UIs around when it was acquired. So what we have are two money-losing-yet-decent services joining forces to create…what?”

Full article here.

Related articles:
AOL revamps online music outfit; still iPod- and Mac-incompatible – August 29, 2006
AOL exec claims ‘artists aren’t happy, publishers aren’t happy’ with Apple’s iTunes – January 23, 2006
AOL acquires MusicNow – November 04, 2005
AOL to launch iTunes Music Store clone in U.S. ‘later this year’ – June 12, 2003

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31 Comments

  1. Actually, I think there is a place for a good subscription service for those that like that model. I have no problem with Napster, especially as long as the DRM stripping software keeps up. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  2. Brilliant! They can both combine to share the burn rate.

    Please.. oh please, stay in business for AAPL’s sake. We need the “competition”.

    Next up…. the “telcons”.

    Game, set, match.

    If this keeps up, I might be drinking a bottle of “Montrachet 1978” with my friends next year in celebration.

  3. ITMS is like Amazon and eBay in as much as they are good, simple ideas and volume/stock/reach is important, even critical, to success in the mass market (very different to niche market). It’s difficult to compete with simple, effective ideas.

    Was AOL’s ‘Music Now’ ever available to Mac users? My limited research indicates not. Maybe AOL believed the 3% or whatever marketshare figures of Mac OS (probably less for their userbase as many (most) are trying to avoid the crap that comes with Windows) and decided to ignore it. That’s foolish.

  4. You know this might not be good

    If all the other online music companies fold, then there won’t be the massive fragmentation of the market that keeps Apple above them. If a clear and streamlines competitor appears on the map because the rest disappeared, then Apple is going to have some real competition for the first time.

  5. It’s amazing how companies chose to abandon working, profitable partnerships for an unproven business following failed business models. Dell dropped iPod for Dell DJ and instead of making money off iPod, they lost quite a handful before dropping Dell DJ. AOL also abandoned partnership to send AOL members to iTunes and chose a subscription model where so many companies have failed instead. Go figure.

  6. I tried Napster for a while, and was surprised that I liked it. The one thing that completely sucked was that you couldn’t listen to everything if you had a subscription–you had to buy certain albums before you could listen to them. That completely sucked, and ended up being more or less a deal breaker for me. But it did prove to me that perhaps a subscription model could work. People have subscriptions to the internet, to phone lines, to gas and electricity, and they are just a given. You move, you re-start your subscription at your new place. Could music be the same thing someday? Why not?

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