Napster Turn Up the Heat on Apple in the UK

Napster’s announcement of a 20 percent price cut (translates as 79p per track) across all its catalogue nicely heats up the UK digital music market for 2005. With an eye firmly on trying to expand their subscriber base the price drop is initially only available to subscribers. However, there is some irony in the fact that this move can be interpreted as trying to beat Apple at their own a la carte game. Napster Chief Executive Chris Gorog recently went on record stating how much better value Napster’s ‘rental’ subscription model is versus a la carte citing a $10,000 cost of filling an iPod through al carte purchases versus a $180 annual Napster subscription.