Word: napsterizing
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This trend has Big Music running scared, at a speed that makes its fight against Napster look like a stroll through the easy-listening section of Sam Goody. Hilary Rosen, the tough-talking president of the Recording Industry Association of America (R.I.A.A.) who led the legal charge against Napster, feels almost nostalgic about 2000, when file sharing was the sole problem. After all, only 11% of Napster users ever transferred their stash of tunes onto a CD; the rest kept them on a computer. Since piracy has gone portable--and local--it is perceived as more of a threat...
...more people listened to more music than ever before," says Jay Berman, chairman of the I.F.P.I. "We just weren't getting paid for it." In other words, the party reconvened at a free establishment down the street. That place is not Napster or any one of the dozens of free online music-file-swapping services like Morpheus that sprang up after the Big Music labels had Napster shut down by the courts. That place is your home...
...major labels' systems include the online services Pressplay (owned by Vivendi Universal and Sony) and MusicNet (EMI, AOL Time Warner, Bertelsmann and the software firm RealNetworks). Initially hyped as the legitimate alternatives to the original outlaw Napster, these services have flopped with consumers--especially where CD burning is concerned. Pressplay charges $9.95 to let you burn 10 tracks a month--barely enough for one CD. MusicNet offers no burning capabilities, but EMI seems to have belatedly recognized the need, at least for fans of Sharon Riley and Faith Chorale. You can now burn up to 20 tracks from...
...delivering those services--and doing so at a profit--is proving a vastly more complex business proposition than anyone imagined. As the ongoing battle over music and video downloads suggests (think Napster), success in a broadband world requires solving complex questions about copyrights and digital encryption. Few executives, even at AOL Time Warner's movie and music divisions, are ready to open their treasure troves to the threat of piracy in an online, on-demand world. The broadband business also requires AOL to pay a cable or DSL provider for access to the pipes that reach customers' homes--at least...
WHERE IS HE NOW? Lead counsel for the major movie studios suing several Napster clones, he could end up defending Hillary if an appeals court revives a dismissed defamation suit filed by Gennifer Flowers...