Napster starts filtering
By Frank Barnako, CBS.MarketWatch.com
Last Update: 10:57 AM ET June 28, 2001
It's not exactly the day the music died, but close.
Napster starts filtering
Now you have to download new software to get music files from Napster.com. The software includes a filter to block copyrighted tracks from being distributed freely. Previous versions of Napster software no longer will work, an online statement said.
"We're making this change as part of our ongoing effort to comply with the court's orders," it continued.
The immediate result has been a sharp decline in the number of tracks available for download. "Users of the new client were sharing an average of 1.5 songs, down from a peak of 220 songs per user in February," said Matt Bailey, a senior analyst for Webnoize, which tracks the digital entertainment market. Napster's announcement conceded this and said that as more users upgrade to the new versions, and more files are identified, more music will become available.
"The new client is being used to test Napster's fingerprinting technology for the company's planned commercial service," said Bailey. "By further reducing the music available through the current service, Napster has provided another nail in the coffin of the service consumers originally loved."
Yahoo buys music video site
Yahoo (YHOO: news, msgs, alerts) , whose new chairman's Hollywood background seems to be pushing the company to boost entertainment offerings, is acquiring online music company Launch Media Inc. Yahoo will do the deal for approximately $12 million in cash. Launch has licensed music videos from music labels and has an archive of reviews and news, the Los Angeles Times reported. "The addition of (our company's) enormous music video collection and Internet radio service to Yahoo's existing entertainment offerings will create even more compelling opportunities for online music fans, established and new artists, and advertisers," said CEO David Goldberg. Backers of Launch include Microsoft (MSFT: news, msgs, alerts) , Intel (INTC: news, msgs, alerts) and AOL Time Warner (AOL: news, msgs, alerts) . Launch also announced a settlement of the copyright infringement claim brought against its radio service by Universal Music Group. The deal included a payment by Launch for past performances and granting of a non-exclusive license with UMG for use of its recordings in the future.
