Napster Inc. Though other areas of digital distribution are hobbling along, executives say that businesses need to develop profitable business plans, test subscription models and improve delivery systems. But so far, the systems only offer a limited selection of high-priced music. Even a lot of web companies can't get it right, and they're the people who are getting money because they supposedly have technical expertise. Consumers shouldn't expect EMusic-priced 99 cent tracks when BMG's system launches this summer. But the real revelation, he says, is that revenue from streaming concerts outstrips downloads by a factor of 10.
Digital music needs a carrier and a package.
Instead, they wonder if they can beat Napster's low, low price of zero. Retailers are making some moves toward such goals. Virgin Megastores said this week it will use services from musicbank Inc. to let CD buyers add their purchases to password-protected Internet accounts and hear streaming versions of the music. Bandwidth isn't the only cost faced by forward-looking consumers. Portable devices that play digital music are expensive.