Rhapsody has announced this week that it will be acquiring the music service Napster in a move that will merge the two companies’ user bases together. Terms of the deal have not been officially published by either side, but it’s thought it will be completed around the 30th of November.
Back in 2008, Best Buy purchased Napster for $121 million, which included Napster’s 700,000 subscribers at the time. However, times have been a little hard lately with added competition from the likes of Slacker, MOG, Spotify, and Pandora, to name a few.
Rhapsody currently has more than 800,000 subscribers paying at least $10 per month for access to a catalog of over 12 million songs. But it is unknown just how many of its original 700,000 users from 2008 Napster has retained.
The Evolution of Music Streaming Services
The acquisition of Napster by Rhapsody marks a significant moment in the evolution of music streaming services. Napster, once a pioneer in the digital music revolution, has seen its fair share of ups and downs. Originally launched in 1999 as a peer-to-peer file-sharing service, Napster quickly became a household name. However, legal battles over copyright infringement led to its shutdown in 2001. The brand was later revived as a legitimate music subscription service, but it struggled to regain its former glory.
Rhapsody, on the other hand, has been a steady player in the music streaming industry since its inception in 2001. By acquiring Napster, Rhapsody aims to consolidate its position in the market and expand its user base. This move is seen as a strategic effort to compete with other major players like Spotify and Apple Music, which have been dominating the industry in recent years.
What This Means for Subscribers
For subscribers of both services, the merger could bring several benefits. Firstly, the combined user base will likely lead to a more extensive music catalog, offering a richer and more diverse selection of songs. Additionally, the merger could result in improved features and functionalities, as the two companies pool their resources and expertise.
However, there are also potential challenges. Integrating two different platforms can be a complex process, and there may be initial hiccups as the companies work to unify their services. Subscribers might experience temporary disruptions or changes in their user experience. Nevertheless, the long-term benefits are expected to outweigh these short-term inconveniences.
The music streaming landscape is highly competitive, with new players constantly entering the market. Services like Tidal, Amazon Music, and YouTube Music are all vying for a share of the pie. In this context, the Rhapsody-Napster merger is a bold move aimed at strengthening their market position and offering a more compelling service to users.
The acquisition of Napster by Rhapsody is a significant development in the music streaming industry. It reflects the ongoing consolidation in the market as companies strive to offer better services and compete more effectively. While the exact terms of the deal remain undisclosed, the merger is expected to be completed by the end of November. Subscribers can look forward to an enhanced music streaming experience as the two companies join forces.
Source: CNET
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