*Napster, in Deal with Bertelsmann, to Convert to Membership Service

Share this content:
Napster and Bertelsmann AG announced today that they are working toward changing Napster's free person-to-person MP3 file-swapping service to a membership-based model.

Bertelsmann's new e-commerce group, BeCG, and Napster have developed a new business model in which a secure, membership-based service will compensate copyright holders. Recording artists, songwriters, record companies and music publishers will be able to receive payment for their work when it is transferred through Napster's service.

"This strategic alliance with Bertelsmann is the right next step for Napster," said Hank Barry, CEO of Napster, Redwood City, CA.

"I am excited that Bertelsmann appreciates and values the uniqueness of the community Napster users have built," said Shawn Fanning, Napster's 19-year-old founder.

Under terms of the agreement, BMG will withdraw its lawsuit against Napster and will make its music catalog available to users once Napster completes the transformation to a membership-based model. BeCG will invest funds to fuel the conversion and will hold a warrant to acquire a portion of Napster's equity.

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above