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Napster Becoming Legitimate Business
Posted by Heidi Chambers on October 2, 2000 at 8:10 AM   (printer friendly)

For the basics on what is happening with the Napster trial, click here.

In May of 2000, Hummer Winblad gave Napster Inc. $15 million in venture capital. The only catch was that Hank Barry, CEO of Napster, had to find a way to make the growing Internet company legitimate. Well, Mr. Barry is trying to do just that and here are two of the proposal ideas he's come up with.

First there is the idea of charging $4.95 for a monthly membership fee. This would generate $500 million a year in revenues for record companies and musicians. Not to mention, that idea would probably also keep Napster Inc. afloat which has some hefty legal bills to pay.

The second proposal is promoting the sale of CDs and downloadable songs. With Napster having over 20 million registered users, there is no doubt that some of them still buy CDs. That idea also includes giving Napster users Internet links and coupons that take them directly to the record companies and the musicians.

On the downside, Mr. Barry is concerned and frustrated with the fact that all of Napster's proposals have so far been shot-down. "We've made serious presentations, none of which have been accepted, which makes me think that it's not about money, it's about control," said Barry.

Napster is due in the 9th Circuit Court of Appeals today, beginning round two of its battle with the record industry.


User Comments (These do not necessarily reflect the beliefs of this site)

Anonymous  
Date: October 2, 2000 @ 10:12 AM
anyone knows where that court session is transmitted live? i looked at courttv.com, but they only have mass murederers on schedule ...

Anonymous  
Date: October 2, 2000 @ 10:21 AM
ahh okay i found it myself ... http://www.cspan.org will transmit the hearing

milladrive  
Date: October 2, 2000 @ 12:28 PM
Is there any info regarding why the 2 proposals were rejected? I agree it's probably more about control than money, but I'm interested to know the reasons given to Napster.

purplegirl8024  
Date: October 7, 2000 @ 4:54 PM
im not paying for my free music

Anonymous  
Date: October 8, 2000 @ 12:49 PM
then the music isn't yours.

milladrive  
Date: October 8, 2000 @ 9:22 PM
It never was, and it always was. ;)

Anonymous  
Date: October 11, 2000 @ 8:26 AM
yepperz
]

Anonymous  
Date: October 11, 2000 @ 8:26 AM
yepperz
]

Anonymous  
Date: October 12, 2000 @ 7:40 AM
napster should be able to do whatever they want not to be suited this stupid just ask the artist in person on camra infront of the whole world for there permission and see if they say no to there fans who even let them be famous and made them what they are today.

Anonymous  
Date: October 12, 2000 @ 7:42 AM
even if they get shut down theres other places where you can score free music but napsters the best