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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Napster cuts price and adds 5 downloads Mon May 18, 2009 4:41pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Yinka Adegoke NEW YORK (Reuters) - Digital music supplier Napster said on Monday it is slashing its monthly subscription price to $5 and adding downloads of songs to its streaming service in a bid to expand its customer base and compete with Apple Inc's iTunes. It is the latest attempt by Napster to take on iTunes, the dominant digital music leader, and its first major strategic move since being taken over by retailer Best Buy Co Inc last October. Los Angeles-based Napster said users can now get unlimited access to stream music from its library of 7 million songs and five free songs for download every month for a subscription fee of $5. Previously, Napster had charged subscribers $12.99 for a streaming-only service. Napster will roll out an in-store marketing campaign across Best Buy's 1,031 stores in the United States. "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," said Chris Gorog, Napster's chief executive. As fewer music fans buy albums, record labels have been keen to develop subscription services like Napster whose recurring revenues are increasingly attractive to their shrinking businesses. To date, subscription services like Napster's and RealNetworks Inc's Rhapsody have taken a relatively small share of music dollars. "Our partners recognize that the way we can all earn value from this is to substantially grow the paid subscription model," said Gorog. "Nobody wins if it remains a niche product." STAGNANT GROWTH The original Napster, founded by then college student Shawn Fanning in 1998, helped set the digital music market in motion in the late 1990s with an extremely popular free music-sharing service, which was shut down following a lawsuit filed by the music industry. The brand name was bought and resurrected as the current legal digital subscription service. But despite name recognition and several strategic initiatives, Napster has not dented iTunes' dominance. In part, that dominance is built on Apple's market-defining iPod digital music player. Gorog and his team believe that adding the downloads to the on-demand music access could rekindle Napster's popularity. "It's the closest we've ever come to the original vision of Napster," said Gorog. MP3 downloads could also help Napster compete with iTunes as users would be able to transfer the songs to their iPods. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Nvidia accuses Intel of unfair pricing Reuters Global Technology Summit Who will come out on top? Technology companies are drawing attention from investors and consumers alike as everyone tries to predict the market bottom and what new inventions might drive a recovery. Full Coverage More Technology News Cheaper iPhone with no data plan possible: analyst Twitter to launch business tools by year-end | Video Nokia unveils its cheapest 3G phone Nvidia accuses Intel of unfair pricing Samsung bets on LCD TVs despite downturn More Technology News... Editor's Choice Slideshow A selection of our best photos from the past 24 hours. 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