Napster returns, but as a shell of its former self
By Jefferson Graham
USA Today
Napster, which revolutionized digital music and rocked the record industry by allowing computer users worldwide to swap songs for free, is back online for the first time since July.
The catch: There's virtually no popular music available, and it's a test run of its new subscription service, with 100,000 songs available to only 20,000 volunteers.
Napster, which closed after several lawsuits brought by record labels and artists, plans to offer 50 songs for downloading for $5 to $10 a month from independent labels such as Vitaminic, Matador and Beggars Banquet. It went up "to show the record companies that the technology works and the downloads are secure," said Napster CEO Konrad Hilbers at a Digital Hollywood conference.
The five major labels still are suing Napster for copyright infringement, and Hilbers is trying to settle the cases and persuade labels to license their music to the new Napster. He said he's "very confident" that Napster will obtain the licenses; the service already settled with music publishers.
Since Napster closed, those record labels have built their own online operations: MusicNet, operated by EMI; BMG and Warner with RealNetworks; and Pressplay, from Sony and Universal. Though none has revealed subscription numbers, the services have been met with tepid reviews.
Napster had agreed to license the MusicNet service, but has changed its mind, Hilbers said, because the labels have been receptive to settlement and licensing discussions: "Why run their system when we have our own?" he said.
"We understand Napster is in serious discussions with the record companies," said Amy Weiss of the Recording Industry Association of America.
Hilbers said the new Napster will be available widely by April.
As with MusicNet and Pressplay, Napster charges a monthly fee for a certain amount of music. But Napster added instant messaging and chat functions, which were among its most popular features, according to Shawn Fanning, 21, who created Napster three years ago in his dorm room.
The new Napster will offer "stuff people really value, like obscure and live tracks they can't buy on a disc and find anywhere," he said. "That comes from the community. It's a way a lot of people learn about new music, and it doesn't exist in the other services."
The money that comes into Napster will be shared with artists and copyright holders.
At its peak last February, Napster had 80 million registered users, who downloaded as many as 3 billion songs each month. But GartnerG2 analyst P.J. McNealy said the new Napster doesn't have much of a chance without offering music from the major labels. "The Napster brand isn't enough," he said. "And the value of their brand name has diminished every day."
On the Web:
napster.com
