Retail chain acquires $121 million MP3 store

Text:

| Print

| Share:

5 commentsMonday, September 15, 2008

Napster Is Best Buy For Best Buy

Retail chain acquires $121 million MP3 store

5 Comments

By Transportadora (WPN reader) - Thu, 04/16/2009 - 18:10

Muito bom :D

Good man..
im back other time...
need speak with u.. cya!

By transportadora (WPN reader) - Wed, 01/14/2009 - 11:16

It´s expensive

It doesn´t worth too much!!
There better systems...

By Craig (WPN reader) - Mon, 09/15/2008 - 15:15

I agree, I think it was a risk worth taking with the asking price being relatively low. Best Buy has grown substantially over the past 5 years and I can imagine they will have a nice business plan revolved around Napster complimented with a full charge marketing plan to improve its visibility and to take an aim at itunes.

Craig

www.budgetpulse.com

By Craig (WPN reader) - Mon, 09/15/2008 - 11:03

Worth the Risk?

@Jason

This could be a large risk for Best Buy. Napster has the base set that if reworked could become a profitable powerhouse on the likes of itunes. It may never reach that high of a mark but could become a more household name again with the marketing efforts backed by Best Buy. At the same time Napster could be heading downhill and this last ditch effort may blow up in Best Buys face. How do you think they are going to improve the service and do you think this was a smart investment?

Craig

www.budgetpulse.com

By Jason Lee Miller (WPN reader) - Mon, 09/15/2008 - 11:38

shrugs

Craig, Far be it from me to make that kind of prediction. I think it makes sense on a certain level but I'm not privy to Best Buy's overall strategy. I can only imagine that iTunes doesn't have to be the only player in this market and with the right management moves, Napster can become profitable. Best Buy's spending available cash, but not a lot of it thanks to Napster's poor profitability in the past. I think they got a deal: a recognizable, iconic brand name in a growth industry. Pair that with ability to offer music in-house in the age of the declining CD (where Best Buy used to make money), and it positions them to regain losses to iTunes. So, yeah, I think it's a good move. How it turns out for them? No clue. They'll have to match or undercut iTunes to stay competitive, though.