The Napster Alliance

In 2000, after large court cases from major record labels, Napster made a business deal with Bertelsmann, parent company of Bertelsmann Music Group (BMG) Records. This revolutionised Napster as a business rather than a pirate. A huge step was taken as Napster introduced a monthly subscription of US$4.95 which gave you access to artists like Elvis, Santana and Christina Aguilera that were under the BMG label.


What did this mean for the Music Industry? 

Napster was being sued for damages and lost revenue by five major record labels at the time of the union with Bertelsmann. Bertelsmann itself was suing Napster for its lost royalties over the file sharing program. This bemused the industry as a former 'foe' now had an alliance with the company that had caused it so much grief.

This seemed to signify a new time in file sharing. People would be able to subscribe to Napster and download the albums they want and the artists would still get their royalties.

Would It Work? 

However, as discussed by Jenny Eliscu through her words and interviews, would Napster really appeal to the world when it has lost its danger feel. "Five dollars a month isn't a lot, but will users be as excited about Napster once it no longer seems like online music's Robin Hood stealing from the record industry and giving away music?" (Eliscu, 2000).

This source is one of the key sources I have found. This shows how the idea of a 'subscription' or a 'music database' may not work, as Napster closed down after these failed attempts. The idea of a paid database has been hot discussion over the last few years. Maybe iTunes has paved the way, being a successful online music store it could leave open a space in the market for competitive trade. 

"It's the end of the 'Napster as a pirate' chapter and on to the `How do they make it a business?' chapter. And there's a lot more chapters to come." Marc Geiger (cited by Eliscu, 2000).


References: 

Eliscu, J. (2000). Napster goes legit: What does Napster's deal with music-industry giant Bertelsmann mean for the future of file-sharing? Rolling Stones, 43-44. Retrieved, April 10, 2011, from the International Index of Music Periodicals database.