Napster has launched a new web-based music store without DRM, which it claims to be the world's biggest MP3 download store with a library of over 6 million tracks.  This store includes music from all the major record labels and thousands of independent record labels, making it the second online music store after Amazon to offer music from all four major record labels in the MP3 format.  This allows its music to be played on any MP3 player, including the iPod series, MP3-capable phones, most set-top boxes, MP3 CD players and other MP3 players not compatible with DRM.  Most of its songs are priced at 99c per song or US$9.95 per album.

Up until now, Napster has been trying hard to promote its unlimited subscription based services where consumers could download any number of songs for a flat monthly fee.  However, as with any offer that sounds too good to be true, it had plenty of strings attached:  All music downloaded as part of the service becomes unplayable once the subscription is cancelled and the music can only be played on "PlaysForSure" compatible players, which excludes the popular iPod series.  Napster will still continue providing its subscription service with the DRM restrictions intact.

iTunes currently has around 70% of the online music market and is the biggest retailer of music in the US.  However, unlike Napster, it does not offer any sort of music subscription service, so Napster's new service now attempts to take on Apple by offering a wider selection of music without DRM.  Napster now also has a competitive advantage over DRM-restricted music stores by supporting iPod players and iTunes music library synchronisation, which means consumers do not need to give up their iPod or iTunes software until before.