Napster upgrade links service with CDNow
In the first demonstration of how Napster and Bertelsmann will generate revenue, Napster released a new version of its software Thursday that includes an e-commerce component linking to Bertelsmann-owned CDNow.
Although Napster and Bertelsmann have promised a subscription-based service, Thursday's software release represents the first concrete action the companies have taken toward revenue generation since they announced their partnership in October.
The move is significant, analysts say, in that it could tip the scales toward convincing other major record labels to sign partnership agreements with Napster. To date, only Bertelsmann's BMG Entertainment has done so, and analysts agree that for Napster's yet-to-be released subscription model to thrive, the other Big Five labels--EMI Recorded Music, Sony Music Group, Universal Music Group and Warner Music Group--will need to be onboard. -- Cecily Barnes, Special to ZDNet News