By Bernhard Warner
LONDON May 20 - Digital download service Napster (news - web sites) scored a major victory over archrival iTunes by launching in Britain on Thursday, the first of the high-flying Internet music stores to make their European debut.
Missed Tech Tuesday? Europe and Japan get all the hot new technology first. Here's a look at the pipeline of future tech -- plus some gadgets that didn't travel well and a wishlist of cool things.
In a move that surprised many in the industry, Napster said its music download and song-streaming service would go live straight away to users in Britain only. It had kept the launch date a tight secret, previously saying only that it would make its UK arrival by the end of summer.
Officials from Apple Computer, which runs the wildly popular iTunes service in the United States, declined to elaborate on their European launch plans, saying only it will be by the end of the year.
Cracking the European market before iTunes is considered crucial for Napster. Apple beat Napster by six months in the United States last year and has established a commanding lead in the small but growing digital music industry.
“The UK is a $2 billion music market. It is the third largest in the world. It's a very important market for us," said Christopher Gorog, CEO of Roxio Inc, the U.S. software company that owns Napster.
PRICE WARS BEGIN
Napster is launching in a brutally competitive European market. Its main rival, Britain's OD2, announced earlier on Thursday it would cut download prices in half for its biggest retail partners in a bid to keep a lock on its market-leading position in Europe.
The increased competition and price-cutting was welcome news to a music industry battered by online music piracy. The proliferation of free songs swapped over the Internet has sunk continental Europe's once thriving recorded music industry.
“This is the latest evidence that our industry's Internet strategy is turning the corner," Jay Berman, CEO of trade body the International Federation of the Phonographic Industry.
Analysts though said portable music devices, not prices, would have the biggest impact on the market.
The success of iTunes has been down to the popularity of Apple's iPod music player, which is compatible only with iTunes.
“The big problem is all those people with iPods out there of course will not be able to use Napster," said Mark Mulligan, a Jupiter Research analyst.
MAJORS ONBOARD
Gorog said Napster will launch with a catalog of 500,000 songs -- from artists ranging from Eminem (news - web sites) to Miles Davis -- the biggest in Europe. Within 30 days, www.napster.co.uk, would have a library of 700,000 songs, he added.
Napster said it will price downloads at 1.09 pounds per track, or 99 pence for monthly subscribers. Subscribers pay 9.99 pounds for unlimited song streams, in which music can be listened to but not copied.
OD2 announced on Thursday it would sell downloads for an average price of 50 pence per track on its five largest download sites including those run by partners Wanadoo, Tiscali, Coca-Cola, Virgin Megastores and Microsoft's MSN.
Napster said like it has done in the United States, it intends to develop customized services for British universities. Also, a promotional alliance with retail chain Dixons will start on Friday, the company announced.
Its continental European rollout plan remains held up by licensing snags with the major music labels and music publishers, Gorog said.
“We'll be looking to move into one or more European territories by the end of the year. That's the hope," he said.
A successful pan-European roll-out is important to Napster's ability to push into the black after spending a total of $150 million in infrastructure start-up costs, Gorog said. “The faster we can roll-out across Europe the faster we can achieve cash break-even," he added.
Earlier this month, Roxio said sales totaled $9.7 million since Napster's commercial launch in October. Apple, meanwhile, has sold over $70 million worth of downloads since launching in April, 2003.
LONDON May 20 - Digital download service Napster (news - web sites) scored a major victory over archrival iTunes by launching in Britain on Thursday, the first of the high-flying Internet music stores to make their European debut.
Missed Tech Tuesday? Europe and Japan get all the hot new technology first. Here's a look at the pipeline of future tech -- plus some gadgets that didn't travel well and a wishlist of cool things.
In a move that surprised many in the industry, Napster said its music download and song-streaming service would go live straight away to users in Britain only. It had kept the launch date a tight secret, previously saying only that it would make its UK arrival by the end of summer.
Officials from Apple Computer, which runs the wildly popular iTunes service in the United States, declined to elaborate on their European launch plans, saying only it will be by the end of the year.
Cracking the European market before iTunes is considered crucial for Napster. Apple beat Napster by six months in the United States last year and has established a commanding lead in the small but growing digital music industry.
“The UK is a $2 billion music market. It is the third largest in the world. It's a very important market for us," said Christopher Gorog, CEO of Roxio Inc, the U.S. software company that owns Napster.
PRICE WARS BEGIN
Napster is launching in a brutally competitive European market. Its main rival, Britain's OD2, announced earlier on Thursday it would cut download prices in half for its biggest retail partners in a bid to keep a lock on its market-leading position in Europe.
The increased competition and price-cutting was welcome news to a music industry battered by online music piracy. The proliferation of free songs swapped over the Internet has sunk continental Europe's once thriving recorded music industry.
“This is the latest evidence that our industry's Internet strategy is turning the corner," Jay Berman, CEO of trade body the International Federation of the Phonographic Industry.
Analysts though said portable music devices, not prices, would have the biggest impact on the market.
The success of iTunes has been down to the popularity of Apple's iPod music player, which is compatible only with iTunes.
“The big problem is all those people with iPods out there of course will not be able to use Napster," said Mark Mulligan, a Jupiter Research analyst.
MAJORS ONBOARD
Gorog said Napster will launch with a catalog of 500,000 songs -- from artists ranging from Eminem (news - web sites) to Miles Davis -- the biggest in Europe. Within 30 days, www.napster.co.uk, would have a library of 700,000 songs, he added.
Napster said it will price downloads at 1.09 pounds per track, or 99 pence for monthly subscribers. Subscribers pay 9.99 pounds for unlimited song streams, in which music can be listened to but not copied.
OD2 announced on Thursday it would sell downloads for an average price of 50 pence per track on its five largest download sites including those run by partners Wanadoo, Tiscali, Coca-Cola, Virgin Megastores and Microsoft's MSN.
Napster said like it has done in the United States, it intends to develop customized services for British universities. Also, a promotional alliance with retail chain Dixons will start on Friday, the company announced.
Its continental European rollout plan remains held up by licensing snags with the major music labels and music publishers, Gorog said.
“We'll be looking to move into one or more European territories by the end of the year. That's the hope," he said.
A successful pan-European roll-out is important to Napster's ability to push into the black after spending a total of $150 million in infrastructure start-up costs, Gorog said. “The faster we can roll-out across Europe the faster we can achieve cash break-even," he added.
Earlier this month, Roxio said sales totaled $9.7 million since Napster's commercial launch in October. Apple, meanwhile, has sold over $70 million worth of downloads since launching in April, 2003.
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