Word: mp3
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...Five record companies last week - are rearguard actions, meant to slow the music business' evolution and milk its aging business model for a few billion more. The music industry may yet squash Napster with legalities, or force it to join forces with the old guard, as it did with MP3. But if the lawyers are tolling for Napster, the evidence they present - of what the Internet can do to a business model - is tolling even more ominously for the RIAA...
COMPAQ IPAQ H3650 $499 or $799, plus $30 a month (with modem); available in June Look out, Palm! Here's a silvery, sleek pocket PC with a built-in MP3 player, full Web access and a gorgeous color screen...
...find popular fascination with phone games hard to imagine, you're not alone. Peter Skarzynski, vice president of sales and marketing for Samsung's wireless division, dismisses them as "a gimmick" and plans to focus instead on putting MP3 players, TVs and digital cameras into his phones. "That's what I call true entertainment," he says...
...real threat to that business model, however, is client-to-client-based programs like Napster, Gnutella and Freenet that make searching and swapping MP3 music files quick and painless. Suddenly Metallica and Elektra no longer control the quantity and destiny of their songs. It costs zip to download Metallica's And Justice for All via Napster. If you're selling CDs, it's hard to build a business around that price point...
Last December, 18 record labels filed suit against Napster--a company whose MusicShare software allows users to trade MP3 music files over the Internet--for copyright infringement...