Napster started 2001 on a high note with the announcement of a second key
alliance with a recording industry powerhouse. Napster, which still faces a
potential court order to shut down its popular online site, announced an
alliance with Germany’s Edel Music AG. Last fall, the company also inked a
deal with Bertelsmann AG.
Both companies have broken ranks with the recording industry, which is trying
to have Napster shut down, putting an end to consumers swapping copyrighted
music via Napster’s Web site.
Edel is one of the world’s largest independent record labels. Its roster of
artists include Roxette, Jennifer Paige and Phunky Data. Edel said Napster will
get access to master recordings and musical compositions for file sharing under
a new service Napster is developing.
"We are very happy to be working with Edel as we evolve toward our new
business model. We are delighted that a progressive and successful label like
Edel has stepped forward and recognized that the interests of music lovers and
music makers are enhanced by the service that Napster is developing," said
Napster CEO Hank Barry.
"This is a very logical step for a company like ours," said Michael
Haentjes, Edel's chief executive officer. For their part, Bertelsmann officials
said they are pleased they are no longer the only record label on the side of
the little rebel company. "For Napster, this is a major step forward. Edel
Music is Europe's most successful independent label of the last decade. We are
delighted that Edel Music has sent such a forward-looking signal with its
willingness to cooperate. We would also like to explicitly invite the other
music labels to support Napster," said company CEO Andreas Schmidt.