p2pnet news | Music:- “Hoping for a market with the brain dead zombie niche? It’s like Audiogalaxy coming back 10 years later with a pay service. Who’d bite?”

That’s a Reader’s Write to a p2pnet post saying the latest move by an increasingly desperate Crapster to stay afloat involves doing what the original Napster did before it was chewed up and regurgitated as a corporate music ’service’.

Sell DRM-free MP3s —- but with Apple as the front end.

Good luck.

Meanwhile, “Perry Rod thinks he has the solution,” says Peter Kafka on Silicon Alley Insider, “Put him and two of his buddies on the Napster board.”

So, who are Perry and friends? - asks the story, answering with an SEC filing “announcing their candidacy,” to wit >>>

Perry is an “independent professional investor” from Encino. He’s also president of Market Rap, which he says is developing a “collaborative community website for investors” and is chairman of something called The Paradise Project, a “non-profit religious organization”. He has “performed professionally as a musician in the Los Angeles area.” He’s 29.

Thomas Sailors manages Cloverdale Investments LLC, his personal holding company. He was an MD at Banc of America Securities and put in stints and Morgan Stanley and Merrill Lynch. He’s 49.

Kavan Singh owns and operates 10 Cold Stone Creamery stores. He’s 26.

The “three crusaders own 483,180 shares of NAPS,” says Kafka, adding, “about 1.1% of shares outstanding. Thomas owns almost all of the group’s holding - 401,000 shares.”

Poor guy <:(

Says the SEC filing >>>

In our view, the current Board, while impressive in experience, has not been effective in inspiring the progress we believe is required for success.”

No! Really?

“Since January 2005, common stock value has fallen by approximately 85%,” the SEC filing notes, also stating >>>

The nominees’ intent in pursuing this effort is to focus upon our shared interest in building stockholder value. It should be emphasized that the nominees are music enthusiasts, as well as investors, who subscribe to and enjoy the Napster music subscription service. We believe that Napster can benefit greatly from the involvement of individuals with a deep interest who are willing to commit considerable time and effort at the board level in helping this company achieve its goals. Although any and all strategic options should be considered, we believe that Napster’s subscription- based business model can be successful as an independent entity if the brand is positioned properly and certain emphases within the company’s portfolio of strategic objectives receive additional attention.

Specific areas of immediate concern include, but are not limited to,

1) positioning, developing, and perhaps transforming, the Napster brand with a strategy that better explains and promotes the value proposition,

2) further development of an in-home music solution with additional AV hardware manufacturing partners,

3) capturing the attention of adult music consumers who wish to avoid piracy and could benefit from multiple family members on subscription, 4) utilizing the viral effects of social networking combined with streaming to promote the brand and the value proposition, 5) better utilization of relatively inexpensive but creative marketing opportunities available in today’s internet marketplace, and 6) cost effective outsourcing opportunities.

The nominees believe that their combined depth of interest in Napster and their willingness to act as a catalyst for changes necessary to rebuild shareholder value are what is needed at this time. Mr. Gorog was informed of our interest on March 24, 2008, and the names of these nominees were submitted for consideration by the board of directors by letter dated April 10, 2008.

We acknowledge the many challenges facing the music industry that have largely been beyond management’s control. Peer to peer piracy of copyrighted digital content, for example, is causing a dramatic shift in consumer attitudes and behavior, especially among young people, with respect to the perception of value and methods of procuring recorded music. Napster’s challenge is magnified by the dynamics of this shift. However, despite these acknowledgements, we believe much more can be done at the board level to represent shareholder interests and that the nominees are uniquely qualified for that role.

No need to stay tuned.

. .Stumble It!

p2pnet - Napster looks to Apple for salvation, May 20, 2008
Silicon Alley Insider - Napster Shareholders’ Plan To Save Company: Put Themselves On The Board , May 21, 2008

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This entry was posted on Thursday, May 22nd, 2008 at 7:36 am and is filed under Music. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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