From 'Business 2.0' - http://www.business2.com/
The Music Industry's About-Face
Finally! After doing nothing but fight the Internet and sue just about anyone who presented an Internet challenge to its copyright-based reign, the record industry finally appears to be turning a valuable corner. What am I talking about? The Napster/Bertelsmann announcement on Tuesday, in which Bertelsmann's music arm, BMG, announced it was forming a partnership with Napster. And if its terms are met, the Bertelsmann lawsuit against Napster would be dropped.
The terms of the deal remain murky, with Napster CEO Hank Barry saying only that BMG would let "Napster be Napster." As such, it's hard to hail the announcement as a major product development, but it is a major development in terms of the music industry finally waking up.
Back in September 1999, in an article questioning the validity of the music industry's Internet initiatives, Business 2.0 stated that the best move for the industry would be to partner with MP3.com, then the public face of Internet music, a position now held by Napster. Our reasoning? The site and the digital music movement had tremendous traffic, and asking--in the case of Napster--38 million users to change their music habits is a big battle indeed.
It appears as though some in the industry are finally realizing that. And in the process, they are realizing that ultimately the best way to revamp your business model is through innovation, not litigation.
The Music Industry's About-Face
Finally! After doing nothing but fight the Internet and sue just about anyone who presented an Internet challenge to its copyright-based reign, the record industry finally appears to be turning a valuable corner. What am I talking about? The Napster/Bertelsmann announcement on Tuesday, in which Bertelsmann's music arm, BMG, announced it was forming a partnership with Napster. And if its terms are met, the Bertelsmann lawsuit against Napster would be dropped.
The terms of the deal remain murky, with Napster CEO Hank Barry saying only that BMG would let "Napster be Napster." As such, it's hard to hail the announcement as a major product development, but it is a major development in terms of the music industry finally waking up.
Back in September 1999, in an article questioning the validity of the music industry's Internet initiatives, Business 2.0 stated that the best move for the industry would be to partner with MP3.com, then the public face of Internet music, a position now held by Napster. Our reasoning? The site and the digital music movement had tremendous traffic, and asking--in the case of Napster--38 million users to change their music habits is a big battle indeed.
It appears as though some in the industry are finally realizing that. And in the process, they are realizing that ultimately the best way to revamp your business model is through innovation, not litigation.
