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July 01, 2007



There are many lessons we can learn from that

Marc Cohen

I am not one to stand up for the record industry but in their defense I would say a couple of things.

First, Napster happened way too fast. Yes, it would have been better to react differently but no multi-billion dollar industry can react that fast. Plus, there was just no precedent for what was happening.

Second, remember that Napster had no realistic revenue model.

In regards to recorded music, I don't think the "freemium" model of giving it away and making money on the upsell works. Recorded music is content like a TV show. TV has proven you can give content away if you support it with advertising. Advertising supported music will be the bread and butter of the recorded music indsutry.

Check out the Ad-Supported Music Central blog:

Joseph Bentzel

While Napster had many of the characteristics of a bubbleboy business, and was not sustainable in and of itself, Dodge is making the point here that the onus was on the record industry to 'embrace and extend', as Bill Gates has often described the challenge of incumbent market leaders that has come to be called the innovator's dilemna. I think the credit here goes to Apple for seeing this disconnect between a so-called 'disruptive innovator' (Napster) and market leaders that failed to embrace and extend. They crafted a solution iPod/iTunes and became the real winners. I go into this Napster episode in my book "Asymmetric Marketing: Tossing the 'Chasm' in the Age of the Software Superpowers", which focuses on how market leaders like MS, Oracle, Google and others engage in systematic 'embrace and extend' marketing that grows markets and provides real opportunity for ecosystem partners.

Lloyd Budd

I agree with Marc Cohen, at the end of the day, the leadership team of Napster are responsible for its successes and failures.

Nastogia is a funny thing.

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