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Yes, sounds pretty much like what Microsoft is doing with Zune Pass, but Napster's deal sounds better than Microsoft's.
The problem with Napster is that, having once been at the forefront of music sharing, and after having been acquired by Best Buy, it's always been a bit late to the game. Yes, it removed DRM from its music library, but only after Amazon and iTunes had already done it.
Now, they're offering five MP3 downloads per month (we're talking about DRM-free MP3s here) and unlimited music streaming service from their 7-million-track library for a flat monthly fee of $5 per month. Plus, you get to choose from over 60 commercial-free radio stations and more than 1,400 expertly programmed playlists.