A concept my friend suggested and put together a plan on about 2 years ago:
"Let's get in bed with a giant retailer on the digital content provider side".
People laughed at her...Who's laughing all the way to the bank now?
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Best Buy Co., in a bid to boost its infant digital music service, has agreed to pay $121 million for the 706,000 subscribers of online music retailer Napster Inc.
Under terms of the all-cash deal, the Richfield-based consumer electronics retailer will pay $2.65 for each Napster share, a 95 percent premium over Napster's closing price of $1.36 last Friday. Analysts, however, noted Best Buy is really paying only $54 million for Napster, which holds about $67 million in cash and short term investments on its balance sheet.
Best Buy executives envision using Napster to distribute content beyond music, including movies and television shows.
"We can foresee Napster acting as a platform for accelerating our growth in the emerging industry of digital entertainment, beyond music subscriptions," said Dave Morrish, Best Buy's executive vice president of connected digital solutions.
The retailer launched Best Buy Digital Music Store in 2006, partially as a way to counter declining CD sales in the wake of the enormous popularity of Apple's iTunes service.
Read full article HERE
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