Quantcast
THE $100 MILLION QUESTION
Bertelsmann Forks Over The Dough, But Napster’s Worth It, Right?
Napster may very well have the richest sugardaddy ever. Bertelsmann’s crusade to keep the online music service alive has cost the media giant over $100 million, according to CNET.com, with more expenses expected.

The file-swapping company’s recent settlement with music publishers (hitsdailydouble.com, 9/24) will cost Napster $36 million up front —$26 million to settle the lawsuit, and a $10 million advance on future licensing fees—and Bertelsmann is fronting the cash.

Last year, Bertelsmann gave Napster a near-$60 million loan, and then this year added a second loan in the "$7 million to $12 million range." We at HITS haven’t seen a tab climb that quickly since Murphy's birthday.

Napster's spending spree is far from over, however, with impending damages or settlement fees to record labels that exceed the music publishers’ $26 million. The company is also hoping to create an attractive subscription service that could rival larger companies such as America Online, which means that Bertelsmann CEO Thomas Middelhoff will have to dig deeper into his lederhosen to keep things running smoothly.

PRIMARY WAVE CHECKS INTO
THE FOUR SEASONS
Mestel walks like a man. (10/22a)
UMG IPO SET FOR '22
And Q3 figures look good as well. (10/21a)
TOP 20: TAY'S FOLKLORIC RUN CONTINUES
A Swift return to #1. (10/22a)
REVENUE CHART: “LEMONADE” AND OCEAN SPRAY
The Rumours are true. (10/22a)
GRAMMY PREVIEW:
PHOEBE BRIDGERS
Could she be this year's left-field anointed one? (10/22a)
RAINMAKERS 2020
Bring your umbrella.
GRAMMY OUTLIERS
Mulling possible surprises.
HALLOWEEN IN QUARANTINE
Why not wear a mask indoors?
ELECTION 2020
What drugs will help us get there?
 Email

 First Name

 Last Name

 Company

 Country
CAPTCHA code
Captcha: (type the characters above)