January 12, 2007, 12:00 AM

AOL hands its music gig over to Napster

AOL announced today that Napster will become the exclusive music subscription provider integrated into AOL Music, replacing AOL Music Now. AOL will migrate 350,000 paid subscribers of Music Now to Napster`s digital music subscription service.

 

AOL is closing up shop on its subscription-based AOL Music Now and turning it over to Napster. AOL announced today that Napster will become the exclusive music subscription provider integrated into AOL Music, replacing AOL Music Now. AOL will migrate 350,000 paid subscribers of Music Now to Napster`s digital music subscription service. Additionally, AOL will promote Napster with links to the Napster service throughout AOL`s free music site, AOL Music.

Music Now customers will automatically become Napster customers unless they opt out and will be able to use their current member ID and password to access the Napster subscription service. Napster will re-create AOL customers` existing personal Music Now music libraries, including any original playlists they have created and saved. Napster also will retain Music Now`s current pricing tiers for migrating subscribers and transfer any pre-paid track credits they have in their accounts.

"Napster`s new relationship with AOL provides us with an excellent opportunity to aggressively grow subscribers through deep integration with one of the most visited music destinations on the web," says Chris Gorog, Napster chairman and CEO. "This transaction firmly positions Napster to be the unequivocal global leader in the premium music subscription sector and the number two overall in digital music revenue."

AOL and Napster, No. 100 in the Internet Retailer Top 500 Guide, expect to complete the service migration within the next 60 days.

 

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