Best Buy has agreed to buy Napster, partly for the chance to sell tech products to its user base.
The music retailer plans to cross-sell devices and other products to Napster’s 700,000 subscribers. By doing so it expects to “capture recurring revenue by offering ongoing value over a mobile digital platform,” it said in a statement.
Interesting notion, but is it logical? From a marketing standpoint, what can Best Buy achieve owning Napster that it couldn’t by simply partnering with it? $121 million is an awful lot to spend on an ad deal, after all.
And from a business standpoint? I’m no music industry analyst, but considering Napster lost $16.5 million last year and faces accelerated innovation from behemoth competitors (See MySpace Music’s news this morning), it’s definitely a gamble.
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