Chris Gorog, Chairman and CEO of Roxio, a company best known for
its CD burning software, made the announcement at a conference
yesterday. The new service will allow users access to up to 500,000
tracks by paying for individual downloads, by monthly subscription,
via internet radio, or in any combination.
"Consumers want flexibility," said Gorog, "and for the first
time they will not have to choose between downloads or
subscriptions."
Roxio acquired Napster's assets in November last year for $5.3
million after the file-sharing service, once valued at billions of
dollars, was sued into bankruptcy.
In May this year the company acquired pressplay, the
subscription-based music service launched by Universal Music Group
and Sony, for $39.5 million. Universal and Sony have retained a
minority shareholding in pressplay, and could earn up to $6.25
million if the new Napster succeeds.
German media giant Bertelsmann previously invested in Napster to
take it legitimate without success. It is currently facing a $17
billion US court action filed against it by major labels including
EMI and Universal. The allegation is that by investing in Napster,
Bertelsmann perpetuated its existence, and thus encouraged on-line
music piracy.
The court action hit a temporary snag on Friday when the German
Federal Constitutional Court refused to allow delivery of the
lawsuit within Germany because delivery might be contrary to
Bertelsmann's rights under the German constitution.
According to Reuters, the court said, "Delivery of the charge is
on the one hand required for the lawsuit under US law, on the other
hand it is required for the acknowledgment of the foreign judgment
under German civil law".
It went on, "If lawsuits in (foreign) courts are obviously
misused to bend a market player to one's will by way of media
pressure and the risk of a court order, this could violate the
German constitution".
However the ruling will only stand for six months, to give time
for a full hearing to decide the issue. According to Reuters it may
have little practical effect anyway, as the media company, which
has assets in the US, has already formally acknowledged the action
in the US courts.
