Word: bertelsmann
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Rather than seeking new ways of pleasing customers, however, the Big Five music companies (AOL Time Warner, Bertelsmann, EMI, Sony and Vivendi Universal) are focusing on making it harder for consumers to get what they want. Although the connection between home copying and lost sales is as tenuous as it was in the '80s, the industry is pushing controversial anticopying technology into the marketplace--while entrepreneurs are assembling new business models for selling music in the digital...
...market has been seeded with dozens of copy-protected CDs, often without the consumer's knowledge. Most, like Natalie Imbruglia's White Lilies Island, on Bertelsmann's BMG, were released in Europe, but in the U.S., if you bought a copy of Universal Music's More Fast and Furious, the second volume of the sound track from the movie, or Enter the Life of Suella by an artist named Pretty Willie, then congratulations!--you're a copy-protection guinea pig. Critics of copy protection say its side effects are potentially disastrous: the discs may not work...
...huge losses from pirating and downloading free music on the Internet and it?s a drumbeat of bad news. EMI tried to solve its problems with two recent merger attempts, but Europe?s regulators rejected bids to hook up with AOL Time Warner, this magazine?s parent, and Bertelsmann...
...adding new subscribers at the rate of 12,800 a day--14% less than at the same time last year. AOL Time Warner is locked into a deal, made by AOL in the last days of the Internet bubble, committing it to pay at least $6.75 billion for Bertelsmann's stake in AOL Europe, an entity now valued at about $2 billion. Also troubling Cohen: "The difficulty in replicating the strategic and visionary strengths of Jerry Levin." The stock dropped more than 5% on her dour assessment, bringing it down 42% from postmerger highs...
...Later this year Napster will release a new version of its file-swapping software with built-in copyright protection. If all goes well, Bertelsmann will convert its loan to Napster into a 56% stake in the firm. MusicNet, which bundles the catalogs of BMG, Warner Music and EMI, plans to license music for online...