Finances

Despite growth in subscribers and revenue, Napster has experienced significant net losses since its inception and according to the SEC filing Napster (2005), 'we expect to incur net losses for at least the next twelve months and likely continue to experience net losses thereafter'. Since 1 April 2003, Napster have incurred approximately $97.8 million of after tax losses from continuing operations. A summary of the finances is presented in Table 5.3.

Sources: BBC (2005), Napster (2005), Wikipedia (2005), The Register (2005) and Wired (2002)

Question

Evaluate how Napster has varied each element of the marketing mix to compete with traditional and online music retailers.

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