Esa Ruoho pointed out an article @ yahoo.com:

http://dailynews.yahoo.com/h/nm/20000611/tc/mpcom_dc_1.html

'The settlement with Time Warner Inc.'s (NYSE:TWX - news) Warner 
Music Group and BMG Entertainment, the music unit of Bertelsmann AG 
(BTGGga.D), cost the San Diego-based company between $15 million and 
$25 million for each label, according to executives familiar with the 
deal.'

(...)

'``The settlement money is not the problem,'' said investment bank 
Kaufman Brothers analyst Nitsan Hargil. ``The bigger problem is that 
it requires MP3.com to pay the labels a royalty per unit,'' he added. 
``I don't see how its current subscription revenue model or an 
advertising model can make up for that.'

(...)

'The question remains if MP3.com and the labels can ever go on to 
make beautiful music together.

MP3.com and the record industry have never been bosom buddies. When 
MP3.com was gearing up its much-anticipated initial public offering 
in July 1999, its chief executive Michael Robertson openly challenged 
the industry. ``The system is broken and we can fix it,'' Robertson 
told Fortune magazine in May 1999.'

(...)

'``Usually, if a criminal commits a crime, they go to jail,'' Pakman 
said. ``In this case, MP3.com committed a crime and not only do they 
get to stay in business but they continue to operate the service 
under a license.'

-- 


---> jab / commie
      "We complete your signature" (r)
      http://commie.oy.com

Reply via email to