Napster establishes retail presence with Target

Cyberbiz Brief

Digital music company Napster signed an agreement with Target to offer a startup kit for sale in the retailer’s stores nationwide, giving users software, prepaid download cards and Napster-branded CDs and cases for burning music.

Deal makes Napster the first online music store to establish a retail presence. It’s part of an ongoing effort to expand availability beyond those who download software from the Web. Napster previously signed an agreement with Penn State U., giving students free access to music streams and the ability to buy songs for download.

Digital music space is dominated by Apple, which has market share of about 70% through its iTunes Music Store but faces increasing competition from recent entrant Real Networks and Sony’s Connect, which will launch in the spring.

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