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AOL Time Warner sceptical about Napster-BMG

1 February 2001 13:04 by Jari Ketola

While Bertelsmann feels that turning the Napster into a subscriber service will be profitable, AOL Time Warner doesn't see it the same way.

"We have had discussions with Bertelsmann, but we haven't seen a business model that puts the reality around that dream," Richard Parsons, AOL Time Warner's co-chief operating officer, said during a luncheon with reporters. AOL Time Warner owns Warner Music Group, one of the Big Five record labels.

Much of the negative attitude comes from the fact that the copyright lawsuit against Napster is yet to be settled. Should Napster be found quilty of copyright violation the big five music companies will be all over them like vultures.

Source:
The Register

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Related articles:

  • Bertelsmann cannot be sued in Germany? (26 July 2003)
  • Napster offers $1 billion to record labels (21 February 2001)
  • Napster will go legal in mid 2001 (14 February 2001)
  • Napster subscription service (29 January 2001)
  • Napster makes a deal with BMG (31 October 2000)
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