Napster says, "whoa!" to reports of woe

Although there were reports of troubles at Napster, they are down playing the problems. I imagine the announcement of their new music destination, when added to their recent losses, signal that the subscription model is not delivering what they expected, even though they say the number of subscribers has doubled in the last year.

Maybe a combination of the two would help, only allowing high volume downloaders the ability to join on a subscription basis (with a higher price than current), and adding additional site features or maybe even exclusive (live?) content that is only available to subscribers. Obviously this back peddling would be hard for Napster to employ, but a new site may find it easy if their array of content in large/broad enough. I haven't seen this type of market segmentation used in this industry, but as the space continues to develop, this model will probably appear somewhere.