Napster accepts its corporate destiny

If you can't beat them, join them: Napster goes legit...

By Joey Gardiner, 5 June 2001 11:41

NEWS Online music distributor Napster is set to sign a deal with three of the music industry's 'big five' record labels which will see its controversial service finally go legit. Napster is reportedly ready to sign an alliance with MusicNet - an online distribution service launched in April by industry giants BMG, EMI and Warner Bros. However, any agreement with MusicNet will mean Napster will still have no access to the catalogues of Vivendi Universal and Sony Music. Napster had already found an ally in BMG, with whom it has been planning to launch a subscriber-based service, but the remaining 'big four' effectively brought the service to its knees in March with an injunction banning it from distributing any copyrighted material. Vivendi Universal and Sony have set up their own venture called Duet, which will go head-to-head with MusicNet in the digital download market. However, analysts have criticised the record companies for their territorial approach to the online music market, saying music fans won't want to have to go to individual record labels' online stores, but will want to be able to get to all the music in one place.

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