Napster made a big deal earlier this year in advertising how much "cheaper" they were than Apple (though, many questioned the math). Of course, when you pitch yourself as the "low cost" alternative, you have to have a plan in place for the time when (not if) someone else comes in with lower prices. It appears that Napster's plan is not to plan at all. Thanks to Yahoo's super cheap pricing (which again are making some point out that the RIAA's claim on "losses" is complete bunk and anyone accused of file sharing should point out that the maximum amount of "loss" to the industry is clearly the $60/year that it would cost to get music from Yahoo) Napster needs to do something to retain users. However, they're doing nothing at all, and don't really have a response to the Yahoo offering. Of course, this should come as no surprise at all. This was the same company last year that tried to redefine its market so that they could say that iTunes wasn't a competitor. And, of course, all of these companies deny that file sharing apps are competitors. When you can't even admit who your real competitors are, it certainly makes it difficult to respond when they cut your business model out from under you.
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