Napster and Bertelsmann cooperate
The largest Internet exchange for music - Napster - and the Bertelsmann Group enter into an alliance. Napster receives a loan of an unknown amount from its new partner, and in return Bertelsmann acquires the option of shares in the Internet company that was founded by a student in 1999.
Furthermore, Bertelsmann announced its subsidiary BMG (Bertelsmann Music Group) from the US lawsuit against Napster. According to Bertelsmann, 38 million users are currently registered with Napster, and there are around 200,000 new users every day. By changing the business model, the aim is to ensure that funds flow to the artists and authors, which is why all music companies, record labels and artists worldwide are invited to actively participate in the development of the new file-sharing system.