Philip Winn talks about his experiences with the new Napster at Blogcritics.
In 5 years, who will remember either? The iPod's cool novelty will pass gas, and there will have been an even better device to come along that will start another wave of copycats. A small device with a full-color display that lets you experience music like people are starting to experience and share photos and blogs with variable pricing plans would do the trick.
The only great thing about mobile phones in the US is that you can purchase a subsidized one that would have cost you a lot more if you commit yourself to a service plan. (You're also locked, which would be a benefit to the media companies.) Europe, with it's much better and more flexible GSM legacy, is actually looking to the US companies as a model for expanded profitability.
Why not the same thing for an iPod Shuffle and regular iPod? $40 and $15 a month for 2 years for the Shuffle. You'll break about even with the first $40 on the Shuffle. Wrap it with a revamped Napster-like buffet music plan according to how much people are paying you every month, and by locking your users in you can at least stave off an attack from another hardware company with a better product until you get your engineering department in order.
In other words, give me a good reason to give you more of my hard-earned money. The illusion of cheap is good enough for most people, including the millions more who haven't bought your products because of the price.
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