Napster will become the new subscription music service provider for AOL Music
after paying $15 million to the Time Warner subsidiary in exchange for the
350,000 paying customers of AOL Music Now. AOL showed that they had very little
patented technology putting further logic to the low-valuation of $43 per user
as compared to Napster's projected value of $328
AOL originally purchased Music Now from retailer Circuit City two years ago. The
deal adds 38 percent to Napster's current customer list, some 566,000 strong. It
might have been more expensive if purchased a bit earlier—AOL's user base has
shrunk by over 100,000 during their last year. Why?...I’m sure you can imagine.
AOL Music Now Subscribers: If you have any questions regarding this migration,
read
here about what happens to your account.
