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The Standard: Let the Music Play: Bertelsmann and Napster Come Together

Nov 01, 2000, 14:28 (2 Talkback[s])
(Other stories by Michael Learmonth)

"The German media giant says it will loan money to Napster to develop a secure file-sharing service and will drop its suit if the service is implemented."

"Bertelsmann, the German media and publishing giant, broke ranks today with the major record labels by announcing a strategic alliance with Napster, the song-sharing company it had been suing. Together, the two companies will develop the file-swapping service's commercial potential."

"Napster has pointed the way for a new direction for music distribution, and we believe it will form the basis of important and exciting new business models for the future of the music industry," said Bertelsmann CEO Thomas Middelhoff in a statement."

"Under the terms of the agreement, Bertelsmann will assist Napster in developing a membership-based service that compensates artists, record labels and publishers each time a song is traded. As soon as Napster implements the service, Bertelsmann's music division, BMG, will withdraw its lawsuit and make its catalog available."

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