Yahoo: The majority of consumers have not yet accepted the subscription model to rent rather than buy music but this is likely to change over the next year, according to the head of the online service Napster Inc.Once synonymous with piracy in online music, Napster now offers music via a subscription service but it is hindered by the dominance of Apple Computer’s iPod which, due to a rights management issue, cannot play Napster music. Napster Chief Executive Chris Gorog told Reuters that Apple’s approach was “anti-consumer” and had held the subscription model back.
But Gorog expects the picture to change as consumers turn to mobile phones that also operate as MP3 players. He believes this access to a wider market will introduce more music fans to the concept of unlimited subscription services.
“The key obstacle to date to moving into mass adoption for the subscription model has been the iPod which has had the very large majority of market share with MP3 players. But the dynamic that will be happening … in this calendar year is the phenomenon of music-enabled cell phones,” he told Reuters in an interview.