Napster Inc. on Wednesday unveiled a portable version of its music subscription service, backed by a $30 million ad campaign that takes aim at rival Apple Computer Inc.'s popular iPod player, reports Reuters.
Napster's promotion includes a Super Bowl television spot urging fans to compare the costs of spending $10,000 to buy and transfer 10,000 songs from Apple's iTunes store to an iPod, with the $15-per-month fee to carry songs from a catalog of over a million tracks on Napster-compatible players.
Some analysts were surprised by the $30 million that
Napster plans to spend on its promotion, which represented about 70 percent of what many had expected it to spend on a full year of marketing.
But Apple's flashy and expensive campaigns in support of its iPod have raised the bar for competitors, they said. "Apple has spent roughly a hundred million dollars or possibly twice that much to market iTunes and iPods. Now, Napster is stepping up to the plate," said analyst Rob Enderle of the Enderle Group.
Read the full article here.