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Non-Tech : Monetizing Shareholder Ignorance

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To: KeepItSimple who wrote ()	5/2/2000 7:51:00 PM
From: John Graybill	Read Replies (1) of 26

Napster: Show Me the Money By Rob Walker Posted Tuesday, May 2, 2000, at 2:23 p.m. PT I get why Napster is a cool thing for music fans. But there is a problem with Napster as a business: So far, there's no money involved. None. Not only does Napster have no profits, it has no revenues. Not only does it have no revenues, it has no business model. Yes, Napster is popular, but it is also free, and emphatically so (which kind of suggests a little problem with Gurley's comparison to AOL). It's popular, in fact, because it is free, and because it lets you get things for free. The entire brand identity of Napster is "free-ness." Why would the kids who have made it popular pay for it? Meanwhile, Napster's "proprietary software" has apparently proved pretty easy to copy--several imitators already exist. slate.msn.com

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