"Maybe the best scenario for NWZ is that it's mildly successful...

"Maybe the best scenario for NWZ is that it's mildly successful but not too successful so as to attract unwanted attention??"

Do you realise how ridiculous that statement is? If they are overly successful, then they become the "bigger player" you refer to. It's like saying Facebook isn't a good business because there's minimal protection from someone else replicating it.

You say the concept isn't new. Can you point to other apps that have the same model?