From the BBC News Online:
Music giants form Napster rival

Three of the world's largest record companies have agreed to join forces and launch a new subscription based music service on the web. MusicNet, which will be available later this year, will be backed by the three media companies AOL Time Warner, Bertelsmann, and EMI.

Each company will own a stake in MusicNet, and their record labels EMI Recorded Music, BMG Entertainment, and Warner Music Group will license their music catalogues via the company.

RealNetworks will also own a minority stake and bring its internet media technology into the partnership.

Web music:

The companies will license the platform to companies that want to sell music subscription services on the web.

Initially, it will be sold to America Online and RealNetworks, but over time even companies like Napster could buy it, the companies said in a statement.

"The end result will greatly accelerate the roll-out of online music subscription services for consumers across multiple distribution networks, including RealNetworks and the America Online family of interactive brands later this year," a statement said.

The music industry has long been at loggerhead with websites which provide free music over the web.

The most important online music sharing service is Napster which has been embroiled in lawsuits and controversy for months.
(c)BBC News Online

RtS