Best Buy said the move was designed to have the retailer "reach new customers" while taking all of Napster's current 700,000 subscribers. The deal is expected to be completed by the end of this year.
"We can foresee Napster acting as a platform for accelerating our growth in the emerging industry of digital entertainment, beyond music subscriptions," said Dave Morrish, an executive vice president of Best Buy.
Napster, a name once synonymous with the world of piracy and P2P networks, has completely reinvented itself over the past few years into an authorized, subscription-based online music store but has been struggling financially and recently reported a $16.5 million USD loss for the 2008 fiscal year.