Napster Explains Decision To Share Customer Data With New Owner Best Buy
This story was written by Staci D. Kramer.
Earlier this month we reported that Napster (NSDQ: NAPS) warned customers that it was changing its privacy policy and would be merging its data with that of new owner Best Bu, leaving questions about what would be done with the merged info. I even mentioned my plans to cancel by the Feb. 17 deadline to avoid being part of the move. Nearly two weeks later, in a post on the company blog, Napster CEO Chris Gorog offered his regret for not explaining it better and defended the company's plans. From his explanation: "Customer information will not be used for marketing purposes without your consent and will never be sold or rented to third parties. The goal of integrating our information is to enhance our customers' music experience. The Best Buy/Napster partnership will further enable both companies to help music customers access their music wherever, whenever, and however they want, which has been Napster's mission from the beginning."
Among the examples: "... we hope to be able to present specialized digital music offers and personalized recommendations based on your Best Buy CD purchases. Determining the number of Napster customers who are also Best Buy Reward Zone members may enable us to create a Reward Zone benefit for Napster Subscribers. Looking even further out, it is possible to envision personalized music pre-loaded on new MP3 players or mobile phones because of our collaboration."
The possibilities are intriguing and customers who stick around may benefit, particularly those who do most of their shopping at Best Buy. Gorog shouldn't be surprised, though, if some of opt out rather than agree to the merger.
By Staci D. Kramer