Napster spells out some of the details of its deal to acquire AOL’s 350,000 or so Music Now subscribers via a brief SEC filing. There are actually two tethered agreements: asset purchase and advertising.
—Napster will pay approximately $15.6 million to AOL Music Now LLC and AOL LLC, more than the $15 million originally reported by the NYT. That equals close to $45 per sub.
—The advertising agreement calls for Napster to get “certain exclusive advertising rights” throughout the AOL Music Channel for one year, subject to renewal based on milestones. AOL guarantees a “minimum amount” of ad impressions. That exclusive may apply only to the download subscription model; still checking on that.
—As reported, the cash amount is subject to change if AOL delivers more subs or fewer; it also can be affected by ad delivery.
Related:
—AOL Sells MusicNow Subscribers To Napster For $15 Million