WaTunes: Napster Japan Joint Venture to Shut Down

March 5, 2010 at 10:38 pm Leave a comment

Source: DMW

Los Angeles – Napster Japan, the music service joint venture between Napster, now a unit of Best Buy (NYSE: BBY), and Tower Records Japan, will shutter at the end of May, Billboard reported.

The stated reason was the fact that Napster did away with digital rights management (DRM) restrictions, and such a model would be prohibitively expensive to operate in Japan. 

Sources also told Billboard that Napster Japan did not ever grow its subscriber base to a profitable level, and that it suffered from a lack of willingness on the part of some labels and Japanese artists to license their tracks to the service. 

Napster Japan launched in October 2006.

Posted via email from WaTunes

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