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Napster cuts music plan to $5 a month

5/19/2009

In a move to better compete with rival iTunes, Napster.com on Monday cut the price of its online music streaming service to $5 a month from $12.95.

Napster CEO Chris Gorog said the new offering stands up well against iTunes because five songs a month will cost just $5, even if they are new releases. By comparison, Apple’s iTunes recently began charging up to $1.29 for newer, more popular tracks.

Napster also allows unlimited full-length song previews vs. iTunes’ 30-second samples.

Subscribers can also buy additional MP3-format songs priced from 69 cents to $1.29.

Gorog also said the company plans to offer a streaming service on mobile devices in the future.

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