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afterdawn.com > news > napster makes a deal with bmg
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Napster makes a deal with BMG

31 October 2000 8:39 by Petteri "dRD" Pyyny

Wow, big change in Napster's legal problems - Napster has inked a deal with Bertelsmann, who owns BMG, one of the five major record labels suing Napster.

BMG and Napster have announced that BMG will drop its lawsuit against Napster and will loan money for Napster to help it to build a subscription system for their application.

BMG has also right to buy a stake of Napster if they want to. No detailed information about Napster's future isn't availble yet -- such as, do the application still allow people to distribute music freely.

Also, the price of the subscription service is unknown, but analysts estimate it would be around $15 / month.

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  • Napster subscription service (29 January 2001)
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