Interesting to me. Perhaps to you.

9.15.2008

Would you like a subscription music service with that?

Seems like everyone wants to be in the content business--even stores that sell dishwashers.  Next: McDonald's. 

I think Coolfer is right.  The subscription service market is not tapped out by any means.  Hardly anyone understands it's value, and perhaps Best Buy's (generally) well-informed sales staff can reposition this service, and change the perception that you're just "renting" music.  Plus Best Buy has sold other content platform
partnerships most in the TV space, Direct TV, FiOS, etc.  One must imagine that these partnerships have been lucrative.  Why else would they buy one in the music space?

There is a difference: the customer's education level on the type of service.  I
know what a cable service does.  I don't know what a subscription music
service is. Can a guy in a blue shirt explain the benefits, and not just to the music lover but to the average joe.

Also, will people even be receptive to Napster education as they're buying the device? With tech products and services, pre-store research is an important part of the decision process.  It's highly likely that the person who is in the store buying a compatible device hasn't done research into how they're going to get media.  It's highly unlikely that they'll trust the Best Buy guy knows, well, best.

Promotional efforts--month free--and other methods of sign-up--after purchase--could help overcome that obstacle but really, the solution lies in pre-store marketing efforts.  Can Best Buy execute the necessary campaign? Napster couldn't.  No one has really.   
Coolfer

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