Business Wars

Napster vs The Record Labels - The Beginning of the End | 1

Business Wars

It’s 2000, and the record industry is just waking up to a major threat to its business model: an online file-sharing system created by a 17-year-old kid from Massachusetts. With Napster β€” so called after the nickname its founder earned on the basketball court β€” users can download music for free. Why would anyone pay 18 or 20 bucks for a CD ever again?  

Musicians like the Offspring greet the technology with open arms. Some bands see Napster as a way to make more money on each song while breaking the control of the record labels over their music. But not so fast. The record industry isn’t just going to give up its $15 billion in annual profits. And the music execs are convinced: the courts will be on their side.


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