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Screen - The Business of entertainment
 

Sharing music site Napster to charge users a fee

AFP
--------------------------------------------------------------------------------

DAVOS, Switzerland: Napster, the controversial but popular file-sharing system, will charge site users a membership fee later this year, the head of Bertelsmann, Napster's parent company, said Monday.

"We have an idea of the price range but it is too early to publicise it," Bertelsmann chief executive Thomas Middelhoff told journalists on the fringes of the World Economic Forum held in this Swiss resort town. The California-based website has allowed some 44 million users to easily pass along digitalized music files, most of which have been copied from CDs. Music companies however have sued the site for copyright infringement. Middelhoff expressed confidence a membership fee would not deter users of Napster's controversial site. "The Napster that we provide is of a very high quality," he said.

But because most of the 56 million people using the site are teenagers, they would have to persuade their parents to pay up, he quipped. They decided to introduce the membership fee in June or July of 2001, after conducting market research involving 20,000 users, he added. Middelhoff played down fears that the service could be used for piracy, insisting that users' capacity for illegally downloading and sending audio files was very limited. Napster joined up with Bertelsmann Music to develop a paying service after coming under pressure from other music giants such as Sony, Warner, Universal and EMI, who pursued them over the copyright issue.

 

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