Napster Warns iPhone Incompatibility Will Hurt Sales But Still Isn't Selling The Compatible Tracks Available

Napster is warning investors that the incompatibility of the tracks it sells with the new iPhone could hurt sales. (InfoWeek)

It seems a weak excuse given that Napster's real problem is incompatibility with 10 million iPods.

Since Napster's woes would be cure as more labels drop DRM; why isn't the download service selling the million plus compatible mp3's that are available from EMI and all of the indies?