Napster Says it’s Microsoft’s Fault it’s not Beating Apple

Thought this was interesting…

Technical glitches by Microsoft and the digital music device makers have hampered Napster Inc.’s ability to close the gap with Apple’s iTunes, the dominant online music service, Napster’s chief executive said on Tuesday.

“There is no question that their execution has been less than brilliant over the last 12 months,” Napster Chairman and Chief Executive Chris Gorog said at the Reuters Global Technology, Media and Telecoms Summit in New York.

“Our business does rely on Microsoft’s digital rights management software and our business model also relies on Microsoft’s ecosystem of device manufacturers,” he added.

Microsoft Corp., he noted, had to grapple with the complexities of dealing with a number of different services and device makers.

“It’s a lot more complex to get organized properly than it is to build one device and one service as Apple has done,” Gorog said. “It’s always been painful at the introduction of new technologies. But it always takes shape like it’s done in the past.”

“We have not been as successful as we might in articulating the real value of this business,” he said. Napster’s market capitalization is about $160 million, but it has cash assets of about $112 million, leaving it with a relatively small enterprise value. Source: Reuters.

They also mentioned it’s way to early still since only 5% of music sales are happening online, so there is plenty of room to grow and plenty of room for competition for apple and it’s iTunes. Well, whatever they come up with, it’s going to have to be good, the click wheel and seemless updates once plugged into your pc are great feeatures for apple. The new devices will have to have atleast as good of a way to browse through the music, it will have to be easy for us to copy the songs ourselves, meaning, we won’t need any special software to copy or find the songs on the new device, and it will need to be cheaper, atleast to start out. We shall see. Meanwhile, I’ll be playing with my iPod.