When Napster originally started off as a file sharing network, it allowed users to freely share and download MP3 files. However, when it was shut down in 2001 due to legal issues and launched as a legal pay service late 2003, the new service only made its music available in the WMA codec with DRM for copy protection, which was the result of most record labels only licensing its music with mandatory copy protection measures. As a result, anyone who decided to purchase music from Napster or take up a subscription needs a WMA "PlaysForSure" compatible player, unlike former Napster members who turned to getting copyrighted music illegally from unofficial P2P sources.
With several competitors to Napster now selling music in the unlocked MP3 format, including eMusic and Amazon that exclusively sell MP3s, Napster finally announced its plans to start selling albums and singles in the unprotected MP3 format in the spring. In order to enforce the time limits and restrictions on its subscription based services, the MP3 format will only be available for individual song and album purchases and not music downloaded as part of its subscription services.
It is unclear at this time which record companies have agreed to license music to Napster in the MP3 format, however, at this time, Sony BMG Music is the only major label that has yet to license music to any music download services in the MP3 format, but is predicted to do so later this year. At this time, while Sony BMG is experimenting with MP3 album downloads, customers must purchase a MusicPass card from a retail store to be able to download an album, unlike Napster and most online other music download stores where customers can purchase music online.
Beginning January 30th, Napster's basic subscription plan will increase from US$9.95 to US$12.95 per month, although existing subscribers may get the lower premium if they pay a full year in advance. Its 'Napster To Go' service which allows subscription music to be transferred to PlaysForSure compatible devices will retain its $14.95 monthly pricing. So far, Napster has reached about 750,000 at the end of the quarter.
