Business Services Industry

Napster: Catalyst for a New Industry or Just Another Dot-com? (The Ivey Case Study[C]).(Statistical Data Included)

Ivey Business Journal, January, 2002 by Hillman, Amy; Slinger, Michael

To look past these temporary problems and acknowledge a far larger more frightening one--our business model is unsustainable--take courage ... I would argue that Bertelsmann did it when the company announced the innovative deal between its mammoth music operation and Napster. If ever an industry needed to face the hard reality that it has an unsustainable business model, it's the recording business: whether Napster lives or dies, file sharing has ended the era of selling music primarily on plastic discs.

Geoffrey Colvin: "It's the Business Model, Stupid," Fortune, January 8, 2001.

It was February 13, 2001, and Hank Barry, CEO of Napster, was having trouble getting to sleep. Last week, Barry had attended The World Economic Forum in Davos, Switzerland,...

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