Three of the world's largest record labels have formed a joint venture with Internet media software company RealNetworks to build a subscription infrastructure that can eventually be licensed to other online music services, such as Napster.
The company, called MusicNet, plans to offer the technology and services that allow online music companies to provide downloads and "streaming" of music over the Internet for a subscription fee.
AOL Time Warner, Bertelsmann and EMI have all licensed their catalogues to and are equity shareholders in MusicNet.
RealNetworks, which makes such Internet media software as RealAudio and RealPlayer, will provide the delivery technology and owns a 40 per cent stake in the new company.
- Meanwhile rock star Prince plans to premiere a new song on Napster on Friday, becoming one of the best-known artists to embrace the controversial Internet song-swapping service as a means of promotion.
