• by Joe Mandese  @mp_joemandese, June 17, 2004

Napster has come full circle, and in the process, has assumed a classic marketing model employed by some of the most traditional - and I might add, successful - consumer marketers. The company, which once marketed a service that enabled users who bought expensive MP3 players to access music for free, albeit illegally, will now give away an expensive MP3 player to users who pay to download legally licensed music files.

It's quite a turnabout for a company, whose nefarious roots accelerated a pitched legal battle over peer-to-peer file-sharing services that ultimately drove the original incarnation of Napster out of business. The company, now a division of Roxio, has sold 10 million music downloads from some of the largest recording labels since going legit. But in a TV campaign breaking June 22, the company will offer new annual Napster subscribers a free Rio Chiba Sport MP3 player. The device retails for $129.99. The catch: A one year subscription to Napster costs $119.40, but that's still a pretty good deal when you consider that the subscription gives users access to a 750,000 song catalog.

"We're offering the best deal in town... both a cool Rio MP3 player and a full year of unlimited listening to Napster's massive catalog," boasts Chris Gorog, chairman-CEO of Napster.

As inspired as Napster's new business model is, it's really not all that new. It's been employed by marketers as old as Gillette, Schick and Wilkinson since marketing times primordial. Except instead of giving away razors and selling the blades, Napster will be giving away Rios and selling the songs.

-- By Joe Mandese