Napster UK Giving Away MP3 Player

In an effort to lure users away from iTunes, which dominates online music sales in the United Kingdom, Napster UK is giving away a free MP3 player to all customers who sign up for three months of service. The player, worth about $55 USD, is made by SanDisk and holds 512MB of songs.

The company says the idea comes from the mobile phone industry, which often provides a free or low-cost handset to new customers who lock themselves into a service contract. The offer is valid for Napster To Go, which costs £14.95 GBP per month, and is not open to those in the U.S.

“Now it's subscription that drives the business and allows the network carriers to give away new phones. This is the model for the future of the digital-music industry where content is king and MP3 players are disposable," Napster UK general manager Leanne Sharman told The Sunday Times.

Sharman says that younger customers aren't tied to brand loyalty and more are turning to lower-cost flash memory based players that are far cheaper than Apple's iPod lineup. But such claims haven't stopped Apple's soaring sales and increasing market share around the world.

Napster reported in August a 7 percent drop in paying customers due to the launch of a free portion of its music service. Company CEO Chris Gorog said it expected to continue to bleed users as some opt for the no-cost option.

Napster counts over 512,000 subscribers, including 4,000 non-paying university subscribers. That number represents a 26 percent increase over last year, but still a far cry from Apple's reach with iTunes.