InstantLive Partners Exclsuively With Napster. But Is It Smart Business?

How do you differentiate yourself from other paid download and subscription services in a somewhat crowded field?  Offer something that no one else has. 

Celebrity Access reports that. "Napster has formed a partnership with Instant Live, a division of Clear Channel Entertainment’s Music Group, for exclusive rights to offer music fans access to Instant Live’s recordings of artist’s concert performances in digital format. First offerings will include new live tracks from The Allman Brothers Band, Bauhaus, The Black Crowes and Copeland."

"Instant Live offers concertgoers a CD of a show directly after the performance conclusion. Through  this partnership, concert attendees also now have the option to purchase the performance recording through Napster shortly after the show’s conclusion. "

"The alliance with Instant Live will allow Napster subscribers to stream or download full-length performance recordings of both existing and newly recorded content as part of Napster’s catalog of music available for a monthly fee. Napster will also be the exclusive retailer for fans who wish to buy Instant Live performances in digital format. The performances can be accessed by visiting Napster.com or by clicking the "Download Now" button on Instant Live’s website, InstantLive.com. As part of the partnership, Napster will have on-site promotion at Instant Live shows."

Exclusive content deals may be good for Napster who also gets promotion via InstantLive.com and at shows. But how good is this it for InstantLive and the bands who work with them to be shut off from the 20 million who bought iPods and therefore only use iTunes or these who use competing services like Rhapsody and Yahoo!Music?