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Napster and Bertelsmann to join forces Napster is one of the largest Internet sites around today where people go to download music. All of Napster's registered users are able to exchange music files without a fee. However by late June or July, this may be changing. Napster was created by a college student, whose goal was to create a program where he could trade files with his friends. He had no idea the program would become so popular. First, it spread throughout his campus and after a few months it became known worldwide.
If you " re a student or you love to listen to music you probably know all about Napster. If you have Napster downloaded onto your computer there will be no reason for you to spend $ 16 or $ 18 a C. D. ever again. As long as your computer is equipped with a burner, you can make your own C. D.
Many record labels think Napster is breaking copyright laws and causing artist and recording companies to lose money. As a result, lawsuits were filed against Napster. The lawsuits were finally dropped but not without costing Napster a considerable amount of time in the courtroom and money in legal fees. To offset these lawsuits and maybe even prevent further lawsuits from emerging Napster has decided to join forces with Bertelsmann, a record label who just recently dropped a lawsuit against Napster, and thus becoming a subscription based site. Napster's decision to become a subscription site did not come without reservation. It prides itself on being a free service Internet site.
Napster knows that it is taking a big chance in losing its customers by charging a fee. In Napster's situation, they hold the majority of power over their stakeholders (the users of their site). They decide whether or not their users pay the subscription fees or not. It's users hold some power also because they could decide to go to other online providers. But it all goes back to Napster because even though it may lose some of its customers the majority will stay with Napster and it will hold the power. There is not much reciprocity between Napster and its users.
Napster does not have continuous interaction with its users. The users download the system onto their computer and download the songs they want to listen to and agree to a type of contract and that is it. I believe the relationship that exists between Napster and its users is a One-shot exchange. This means there is only an economic exchange between Napster and its users (in this cause not a monetary exchange).
The one shot exchange is a good relationship to have because Napster has a one-time interaction with Bibliography:
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