Call it the battle of the dueling business models: Apple creates the kick-ass iTunes Music Store at practically a loss in order to sell the very profitable iPod and now Napster gets into the business of giving away MP3 players in return for a one-year subscription.
I suspect that Steve Jobs is right on two points. One, people like to buy music and own it. It’s what we consumers have been doing for decades. Renting is for movies. We also hate mp3 players that can only hold a measly 128 megs of music, like the one Napster is giving away. The iPod revolution is driven by the fact that you can put a ton of music on your iPod, quickly and easily.
So what’s the story? Napster, in the end, is giving away nothing.
Does the Napster offer entice you?