Napster - Trying to compete, or getting desperate?

It was the music download site that first caused major headaches for record company bosses when it was first launched as an illegal download site.  Ten years on, Napster is now a legitimate music site (and has been since 2002), but is facing a battle of it’s own.

In response to increasing competition, the site has just revamped it’s packages with prices now starting at £5 per month.  In addition, the new packages contain inclusive downloads, rather than the ability to simply stream music.  Is this enough to see off competition from the likes of Spotify, We7, iTunes and rumoured offerings coming soon from Virgin Media and BSkyB.

This provides an ideal scenario for students to undertake an analysis of competitor’s strengths and weaknesses in a market that they have real knowledge. Is Spotify’s free service, funded by adverts, a more appealing model than paying a monthly charge?  Is Napster’s refusal to create an iPhone App a mistake, given that Spotify have done just that.  Which service do students use - if any - and why?

Revision Presentation - Marketing Mix: Introduction to Pricing [17 May 2012]
Revision Presentation - Marketing and Competitiveness [17 May 2012]
Brand Logos (there’s an app for that) [20 Apr 2012]
Revision Presentation - Porters Five Forces [5 Apr 2012]
Cut price cup cake deal goes wrong…... [22 Nov 2011]
Unilever hit by rising costs [6 Nov 2011]
Tesco and Retrenchment [31 Aug 2011]
Spotify - Five Years to Break-even [28 Aug 2011]
Samsung seeks a ban on Apple products [30 Jun 2011]
Strategy Video - Innovation through technology at Fern Howard [10 Jun 2011]
An end to outsourcing? [18 May 2011]
Whitbread goes for organic growth [2 May 2011]
Revision games - Marketing Basics (True / False) [16 Feb 2011]
Q&A - Distinguish between price and cost [2 Jan 2011]
Q&A - Should a business use a “loss leader” as part of its pricing tactics? [31 Dec 2010]
Advent business (2) - online marketing [2 Dec 2010]
Segmentation & Pricing - the Ice-Cream Price Pyramid [17 Nov 2010]
Cash flow Clue-doh! The Mystery is Revealed… [2 Nov 2010]
Making the FT Brand Sweat! [19 Oct 2010]
Pricing Strategy - Mobile Data Networks [14 Sep 2010]
37 Ways for a Business to be More Competitive [24 Aug 2010]
Betting firm cries fowl and turns to offshoring [26 Jul 2010]
Farmers v Supermarkets - the battle continues [19 Jul 2010]
Lessons from the business model of King & Allen [13 Jul 2010]
Business survival strategies for independent bookshops [14 Jun 2010]
Supermarkets set for a new price war? [13 Jun 2010]
Book wars! [5 May 2010]
Taking Demand-based Pricing To Extremes [8 Feb 2010]
Video case study - substitute goods benefiting from the recession [1 Feb 2010]
What business students can learn from how businesses have handled the recession [1 Feb 2010]
Product, pricing and profitability in a changing market [20 Jan 2010]
Revision Presentation - New Businesses and Competition [1 Jan 2010]
Revision Presentation - Revenues and Demand [30 Dec 2009]
Video case study - competition drives down prices in India [28 Dec 2009]
Q&A - When is it appropriate for a firm to use penetration pricing? [21 Dec 2009]
Q&A - Explain price skimming [21 Dec 2009]
Q&A - What is the difference between pricing strategies & tactics? [21 Dec 2009]
Q&A - Explain what is meant by price positioning [21 Dec 2009]
Q&A - What factors should a business consider when setting its prices? [19 Dec 2009]
Q&A - How does pricing link to the objectives of a business? [19 Dec 2009]
Q&A - What is price and why is it so important in the marketing mix? [19 Dec 2009]
Breakfast for $1 tests price elasticity of demand [12 Dec 2009]
A tale of two bakers [16 Nov 2009]
Emerging markets drive demand for oil [16 Nov 2009]
Eurostar’s competitive forces [13 Nov 2009]
Innocent Drinks - Teaching Accounts Exercise [9 Nov 2009]
Competition regulator blocks Friends Reunited sale [3 Nov 2009]
Santa goes back to basics in attempt to reduce the cost of Christmas [29 Oct 2009]
Q&A - How are businesses affected by unemployment? [27 Oct 2009]
Q&A - What are the main causes of unemployment? [27 Oct 2009]
The new competitive threat to iTunes & Spotify - Google Music? [21 Oct 2009]
Pricing strategies and tactics under investigation [15 Oct 2009]
Dyson launches a new premium product [14 Oct 2009]
Ukraine 1 England 0 - A match to remember? [12 Oct 2009]
V-Water - from start up to exit [4 Oct 2009]
Meet the Young Entrepreneur of the Year 2009 [30 Sep 2009]
The lights go out for the nightclub market [26 Sep 2009]
Sony cuts the PS3 price to extend its life cycle [30 Aug 2009]
More trouble in the skies [27 Aug 2009]
Plastic car is a blast from the past [25 Aug 2009]
Sainsbury’s and Diageo pitch in to battle [17 Aug 2009]
Own label brands profit from the recession [4 Aug 2009]
Demand and supply in action - tea prices surge [4 Aug 2009]
The Death of Newspapers - to be replaced by Nichepapers? [2 Aug 2009]
BA cuts out the cost of short-haul meals [29 Jul 2009]
Microsoft and Google compete head-to-head [9 Jul 2009]
Coffee Republic struggles with the daily grind [6 Jul 2009]
What makes a profitable menu? [6 Jul 2009]
Instore Takes a Pounding [6 Jul 2009]
Swimsuit malfunction - a failure of quality or just the wrong size? [2 Jul 2009]
U2 on Tour - Investment appraisal and capacity utilisation rolled into one! [2 Jul 2009]
Q&A - Outline the main costs and benefits of inflation [1 Jul 2009]
Q&A - Explain the causes of inflation [1 Jul 2009]
Q&A - What is inflation and how is it measured? [1 Jul 2009]
Q&A - Explain the role of corporate objectives in business strategy [1 Jul 2009]
East Coast Rail Line is Nationalised [1 Jul 2009]
Recession Bites - new food shopping habits [29 Jun 2009]
Budget Hotel Chain Now Feeling the Squeeze [17 Jun 2009]
Milk co-operative turns sour [4 Jun 2009]
How to improve a profit margin through a hidden price increase - the Snickers way [4 Jun 2009]
Britain’s Got Talent - Extending the Brand [1 Jun 2009]
Protecting a business idea - the irn-bru way [26 May 2009]
Video case study - football shirt sponsorship under pressure [25 May 2009]
BA posts a record loss [22 May 2009]
Video case study - the effect of deflation on businesses [19 May 2009]
Motivating employees - the end of the mobile phone sales shark? [17 May 2009]
AQA AS Business Unit 1 - Possible Evaluation Questions [17 May 2009]
A booming rental market – for car parking spaces [12 May 2009]
Q&A - What is the link between product differentiation and a USP? [1 May 2009]
Q&A - How do changes in commodity prices affect businesses? [1 May 2009]
Q&A - What are commodities and how are their prices determined? [1 May 2009]
Q&A - What is market supply [1 May 2009]
Q&A - What is market demand? [1 May 2009]
Q&A - What are the implications for UK businesses if the pound strengthens? [1 May 2009]
Q&A - What causes an exchange rate to change? [1 May 2009]
Q&A - What is an exchange rate? [1 May 2009]
Q&A - How are businesses affected by changes in interest rates? [1 May 2009]
Q&A - What goes into the “marketing mix”? [1 May 2009]
How can the same product be cheaper to buy new than second-hand? [16 Apr 2009]
OCR 2880 (ACE) - Charging for Cargo [12 Apr 2009]

BUSINESS TEACHER RESOURCE NEWSLETTER
Get first news of business teaching resources, ideas and other materials from tutor2u. Over 9,400 business teachers from the UK and around the world receive our regular teacher email newsletters. Sign up for free here!