Message-ID: <25109787.1075845225179.JavaMail.evans@thyme> Date: Wed, 6 Jun 2001 07:34:13 -0700 (PDT) From: thestandard@boing.email-publisher.com To: mediagrok@thestandard.email-publisher.com Subject: Media Grok: Napster Is Dead, Long Live Napster Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "TheStandard.com" @ENRON X-To: Media Grok X-cc: X-bcc: X-Folder: \Lewis, Andrew H.\Lewis, Andrew H.\Deleted Items X-Origin: LEWIS-A X-FileName: Lewis, Andrew H..pst This is the result of processing the Media Grok Newsletter Template: ===================================================================== THE STANDARD'S M E D I A G R O K A Commentary on What the Press Is Reporting and Why ===================================================================== | http://www.thestandard.com | Wednesday, June 6, 2001 TOP GROKS: * Napster Is Dead, Long Live Napster * Will Lucent Cut From the Middle? * If It's Wednesday, That Must Be Traveling Music MORE NEWS: * Napster Signs With the Major Labels * Lucent to Ax an Additional 5,000 Jobs * Amazon Looks Forward to 2002 * Sega to Enter Chinese Game Software Market in June /=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= advertisement =-=-= **The Standard's new COMPANY INDEX** Find information about hundreds of companies in our new COMPANY INDEX. Browse through the alphabetical listings, industries and categories, or perform a search to find the company you're looking for. The Company Dossier hosts articles, a company profile, stock information and financial overviews, key players and contact information. http://click.email-publisher.com/oaaab7qaaP7YrbVAtCeaaaacSb/ =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=/ TOP GROKS ~~~~~~~~~ Napster Is Dead, Long Live Napster We haven't heard this much talk of legitimacy since we read "Bastard Out of Carolina." Napster has signed with MusicNet (the pay-per-download service to be launched by three of the five major labels), giving Napster that much-discussed legitimacy at last. That's good, right? Not if Napster as we know it is already six feet under, said some reporters. The Globe and Mail said MusicNet "relegates (Napster) to a pale imitation of its former self." The alliance is "another step backward for the once-proud file-swapping service," added News.com. There was much talk of the supposedly valuable Napster "brand," but The Register argued, "Say Napster to someone, and the first reaction will most likely be 'failure.'" Either that or "pig Latin." Since Napster nailed down its filtering technique, there's no arguing that its membership has dropped. But by how much? The New York Times reported on "Napster's more than 70 million users" (maybe that refers to anyone who has ever tried the service), a MusicNet adviser elsewhere mentioned "6 million music fans," and a Webnoize report that measured only simultaneous users counted a drop from 1.5 million to 840,000. "Users are still there," insisted a Webnoize analyst. Probably not 70 million of them, however. Napster is still getting sued by members of the MusicNet consortium, believe it or not, and a Napster-MusicNet service won't go live until Napster works out some more copyright-related details. Meanwhile, Wired News reminded us that "Thomas Middelhoff, Bertelsmann's chairman, has repeatedly claimed that Napster's new secure service would be launched by no later than July." Tick tock, Tom. - Jen Muehlbauer Napster Signs With the Major Labels http://www.thestandard.com/article/0,1902,26900,00.html Napster Service Gets Legit http://www.wired.com/news/mp3/0,1285,44322,00.html MusicNet snags Napster's 6 million fans http://seattlep-i.nwsource.com/business/26189_napster06.shtml Napster Near Accord on Music Sales http://www.nytimes.com/2001/06/05/technology/05MUSI.html (Registration required.) Napster Signs Deal to Offer Music From Record Giants http://www.washingtonpost.com/wp-dyn/articles/A26643-2001Jun5.html Napster cuts deal with majors http://news.cnet.com/news/0-1005-200-6198507.html Napster signs deal with MusicNet http://www.siliconvalley.com/docs/news/svtop/napstr060601.htm Napster strikes deal with foes http://www.globeandmail.ca/servlet/RTGAMArticleHTMLTemplate/D,C,C/20010606/w napsdeal?tf=RT/fullstory_Bus.html&cf=RT/config-neutral&vg=BigAdVariableGener ator&slug=wnapsdeal&date=20010606&archive=RTGAM&site=Business&ad_page_name=b reakingnews-business Napster nears deal with music industry http://www.theregister.co.uk/content/6/19455.html ------------------------------- Will Lucent Cut From the Middle? Hey! Everybody! Lucent says it's turning itself around! Buy Lucent! Buy tech stocks! Not so fast. Though Lucent boss Henry Schacht made some optimistic comments on Tuesday that helped send the Nasdaq north, it also surfaced Tuesday that Lucent may try to sweet-talk at least 10,000 high-paid managers into early retirement to help with that promised turnaround. (Is "retirement package" some new code for "severance"?) For analysts and investors, that may still be good news. Lucent hasn't cut nearly as many jobs as it promised in January, and some observers have started to squirm - though not as much as Lucent employees. How many bosses could prematurely hop in their RVs and head for Florida? Reuters said Lucent would offer buyouts to "several thousand" managers, the New York Times cited "more than 10,000," and the Wall Street Journal said "up to 15,000." The Financial Times' source said 5,000 managers, but that's on top of 10,000 jobs already on the chopping block. The Times may have summed it up best: "It is not clear how many managers will receive or accept buyout offers." We suspect the trouble-free loss of even a few thousand middle managers would support many cube-dwellers' opinions of their supervisors' usefulness. Nor does anyone know what the early retirement package would include. Both the Journal and the Times heard a calculation that if half the managers in question accept the buyout, Lucent could save $100 million - but neither outlet seemed willing to bet the house on that number. Sources did seem to agree that middle management, not execs, will get the buyout pitch. After all, Lucent is having enough trouble finding a permanent replacement for the CEO it ousted in October. - Jen Muehlbauer Lucent to Ax Additional 5,000 Jobs http://www.thestandard.com/article/0,1902,26922,00.html Lucent to offer management buyouts (Reuters) http://investor.cnet.com/investor/news/newsitem/0-9900-1028-6198480-0.html Lucent to Offer Early-Retirement Packages To 15,000 Managers, Reaffirms Guidance http://interactive.wsj.com/articles/SB991747862792871939.htm (Paid subscription required.) Lucent Is Said to Be Ready to Offer Buyouts to 10,000 http://www.nytimes.com/2001/06/06/technology/06LUCE.html (Registration required.) Lucent Technologies to shed 5,000 more jobs http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3ITBM2MNC ------------------------------- If It's Wednesday, That Must Be Traveling Music Trent Lott is officially out of the loop today, and so is Priceline's Jay Walker. But while the ex-Senate leader crankily steps down, Walker is probably whistling a happy tune as he exits. The man who insisted Priceline was a stroke of brilliance has cashed out of the biz. What does Walker's move mean? Most media outlets switched on the muzak. According to reporters, Hong Kong businessman Li Ka-shing scarfed up 25 million shares of Priceline on Tuesday. Added to the 35 million he bought in February through two conglomerates he controls, the billionaire - pegged by Reuters as Hong Kong's richest man - now owns 30 percent of the former Net darling. He also now controls three of Priceline's 11 board seats, the Financial Times said. But don't expect the $110 million investment to enrich Priceline. According to Reuters, the shares are a private sale by Walker. He still owns 14.9 million shares in the company, but the media were unclear on what will become of them. The Associated Press reported that Priceline said Walker has sold the shares, or plans to. The Financial Times countered that Walker's remaining stake is subject to complications such as "options, forward contracts or other private agreements with investors." So the sale to Li Ka-shing effectively reduces Walker's stake to nothing, as the peach paper put it. Doesn't it look bad when a company founder cashes out? Not to a Priceline spokesman who gamely spun the deal as a positive one that increases the involvement of two strategic partners, Reuters reported. The wire service's coverage of the sale provided the best context for the deal by offering an explanation of the two companies' businesses and their potential plans for the investment. Cheung Kong and Hutchison Whampoa are multinationals with holdings that range from hotels to Internet operations, according to Reuters, and Priceline's spokesman said the idea is to begin talks with Asian investors to plan "Priceline-type services" for that market. Last week Lott famously wrote in a memo that a plurality isn't a majority. Then again, like the Senate, Net companies aren't always democratic. - Deborah Asbrand Hong Kong's Biggest Tycoon Ups His Stake in Priceline.com (Reuters) http://www.thestandard.com/article/0,1902,26918,00.html Hong Kong Tycoon Gets 30% of Priceline http://www.nypost.com/business/31971.htm Cheung Kong, Hutchison Whampoa Increase Their Stakes in Priceline.com http://interactive.wsj.com/articles/SB991774702675956266.htm (Paid subscription required.) Hong Kong Tycoon Boosts Priceline Stake to 30% http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3OAYYHMNC&live=true&tagid=FTDDMJNIFEC Priceline founder to sell own 30 percent stake (AP) http://news.cnet.com/news/0-1007-200-6199387.html --------------------------------------------------------------------- /=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= advertisement =-=-= NOMINATIONS WANTED FOR THE BUSINESS TRANSFORMATION AWARDS Nominate your favorite company for The Industry Standard's Business Transformation Awards, to be announced in October at the Net Returns conference. Click on the url below for more information. http://click.email-publisher.com/oaaack1aaP8MHbVAtCeaaaacTb/ =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=/ /=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= advertisement =-=-= GET 4 FREE ISSUES OF THE INDUSTRY STANDARD The Industry Standard is the only weekly newsmagazine devoted to covering the New Economy--and you're invited to sample 4 issues--absolutely risk-free! Click on the url below to order today. http://click.email-publisher.com/oaaab7saaP7YtbVAtCeaaaacUb/ =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=/ MORE NEWS AT THESTANDARD.COM ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Napster Signs With the Major Labels By Michael Learmonth The deal will give the song-swap service access to tunes from BMG, Warner Music and EMI - and ups its odds for survival as a subscription service. http://www.thestandard.com/article/0,1902,26900,00.html?nl=mg Lucent to Ax an Additional 5,000 Jobs By IDG The troubled telco equipment maker may offer buy-outs or early retirement to a swathe of mid-level managers, on top of the 10,000 job cuts announced in January. http://www.thestandard.com/article/0,1902,26922,00.html?nl=mg Amazon Looks Forward to 2002 By Miguel Helft Offering its first guidance for next year, the e-retailer says it'll be 'well-positioned' for pro-forma operating profits. Many analysts shrug. http://www.thestandard.com/article/0,1902,26908,00.html?nl=mg Sega to Enter Chinese Game Software Market in June By Reuters The Japanese company behind "Sonic The Hedgehog" hopes to revive its fortunes by capturing 10 percent of the Chinese gaming market in one year. http://www.thestandard.com/article/0,1902,26925,00.html?nl=mg --------------------------------------------------------------------- MORE LINKS ~~~~~~~~~~ Internet Lottos Prized By Web Surfers http://www0.mercurycenter.com/local/center/weblot0606.htm Tech Doubter Gets Aboard http://washingtonpost.com/wp-dyn/articles/A26650-2001Jun5.html Branson and NTL Try to Sell Virgin.net http://tm0.com/sbct.cgi?s=24677699&i=350665&d=1444474 Amazon Expanding Into Computer Sales http://seattletimes.nwsource.com/html/businesstechnology/134303327_amazon06.html Plaintive E-Mail Outrages Israel (Reuters) http://www.wired.com/news/culture/0,1284,44303,00.html Survival Of The Losers http://www.salon.com/tech/feature/2001/06/06/darwin_s_web/index.html A Helping Handheld for the Disabled http://www.businessweek.com/bwdaily/dnflash/jun2001/nf2001066_171.htm Microsoft ends free support for Office 97 http://news.cnet.com/news/0-1003-200-6196458.html STAFF ~~~~~ Written by Deborah Asbrand (dasbrand@world.std.com), Michaela Cavallaro (mcavalla@maine.rr.com),Keith Dawson (dawson@world.std.com), Jen Muehlbauer (jen@englishmajor.com) and David Sims (davesims@sonic.net). Edited by Jimmy Guterman (guterman@vineyard.com). Copyedited by Jim Duffy (jduffy@thestandard.com). GET THE MAGAZINE ~~~~~~~~~~~~~~~~ 4 RISK-FREE issues at this URL: http://click.email-publisher.com/maaacnFaaP8U8bVAtCeb/ GET MORE NEWSLETTERS ~~~~~~~~~~~~~~~~~~~~ The Standard newsletters cover the media, stock market, e-commerce, music, law and more. To SUBSCRIBE to other newsletters, click here: http://click.email-publisher.com/maaacnFaaP8U9bVAtCeb/ To unsubscribe, click here: http://thestandard.email-publisher.com/u/?bUrKAM.bVAtCe ADVERTISING INFORMATION ~~~~~~~~~~~~~~~~~~~~~~~ For more information on advertising in The Standard Newsletters, contact: Erik VanderKolk (evanderkolk@thestandard.com) FEEDBACK AND PROBLEMS ~~~~~~~~~~~~~~~~~~~~~ Send letters to the editor to letters@thestandard.com. 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