Napster & AHWY in alliance via proposed merger?
NAPSTER FORGES ALLIANCE WITH HIP-HOP LABEL 75 ARK ENTERTAINMENT
FOR IMMEDIATE RELEASE
Napster's New Artist Program Also Draws More Than 14,000 Artists In First Weeks
SAN MATEO, CA (June 12, 2000) - Napster Inc., the world's leading filesharing community, today announced that it has entered into an alliance with hip-hop label 75 Ark. The software developer has also announced the launch of a new artist program. These developments are in keeping with Napster's long-term goals of working with the music industry in the face of rapidly changing technology.
Hip-hop label 75 Ark Entertainment and its artists have been on the forefront of the digital music revolution. The label is home to such acclaimed hip-hop innovators as producer Dan Nakamura (aka The Automator), the Anti Pop Consortium, Encore and Deltron 3030 (a collaboration between Del tha Funkee Homosapien, Kid Koala and The Automator), and is owned by nicheMusic.com, Inc. 75 Ark's deal with Napster will be ongoing, and will involve exclusive monthly downloads of unreleased tracks by 75 Ark artists, beginning with a free and otherwise unavailable download from their newest signing, The Coup, an independently established hip-hop act whose last three records sold more than 250,000 copies domestically. The deal will also involve other cross-promotional activities, both online and offline.
"Napster is a great promotional tool for artists and labels alike," notes Erik Gilbert, VP/General Manager of 75 Ark. "We are experiencing a paradigm shift in how music is promoted and consumed, and Napster has opened the door for labels to rethink and embrace future revenue models." As for allegations by some in the industry that community-based digital music filesharing threatens the music business, Gilbert differs. "This will not hurt product sales. It is an exciting and unprecedented time for the music industry, and I am delighted to have the opportunity to work with Napster in promoting and marketing our artists and label"
"Napster is an example of one of the more redeeming qualities of the Internet," adds Boots Riley of The Coup. "It's the kind of thing one hopes for when envisioning how we'd like the Internet to be -- that people can trade music freely, and that artists who don't necessarily have access to commercial radio or MTV can get their music out there and reach millions of people."
Although 75 Ark is the first established label to forge an alliance with Napster, its artists join many other notable recording artists who have expressed support of Napster, including Limp Bizkit, the Offspring, Chuck D and Motley Crüe.
"We are very happy to be working with such established industry leaders as 75 Ark," stated Hank Barry, CEO of Napster. "We are eager to build more partnerships and collaborations that prove that making music more easily available will always benefit artists and the industry."
Napster is also pleased to announce the launch of its recently upgraded New Artist Program, which enables aspiring musicians to share new music with one another and their potential fans. Since its soft-launch in May, more than 14,000 artists have signed up to participate in the improved program, which, in addition to helping these artists make their music available to the largest online community of music lovers on the Internet, also provides literature, software and services useful to independent musicians.
"Napster gives us access to 10 million users," says Randy Nichols, manager of NYC ska band The Pilfers, noting that the band sold more copies of their first record, which was independently released and promoted via the Internet, than Mojo/Universal has sold of their current release. "We wonder if our record company is exposing us to anyone."
Small, independent record labels consistently find that distributing songs via the Internet helps business. "We all have been through the horror of buying a CD after hearing one song and discovering the rest is junk," observes Linus Gelber, whose label Home Office Records makes tracks from its acts Pawnshop and the Cucumbers available by using Napster. "Well, I want you to be a happy customer. So I'm going to let you try our songs, and I believe ultimately that you're going to want to buy [the record]."
Even online retailers who've tested the waters are finding Napster to be a helpful sales tool. "As a CD store, we've found that the more people are downloading an artist freely on the web, the more likely we're going to see a lot of sales on that artist," says Derek Sivers, president of CDbaby.com. "We ask customers where they heard of the CDs they're buying. A surprising number of people are discovering new music through Napster, then clicking over to CDbaby to buy the physical CD."
About Napster
Napster is the world's leading filesharing community. Napster's software application enables users to locate and share media files from one convenient, easy-to-use interface. It also provides media fans a forum to communicate their interests and tastes with one another via instant messaging, chat rooms, and Hot List user bookmarks. Napster was founded in 1999 by eighteen-year-old Shawn Fanning, then a freshman at Boston's Northeastern University.
About 75 Ark Entertainment
75 Ark Entertainment, based in New York City, is a label group representing Hip-Hop, DJ Culture and Turntablism. In addition to The Coup, their roster includes producer Dan The Automator (who is also co-owner of the label and handles A&R for the label), Deltron 3030, the Anti Pop Consortium, Mista Sinista (of the X-ecutioners), Encore and The Nextmen. 75 Ark is owned by nicheMusic.com, Inc. Most recently, nicheMusic.com has developed the website for Handsome Boy Modeling School.
Consumer Media Contacts:
Jill Mango/Deborah Orr, Girlie Action, (212) 334-3200 x111, mango@girlie.com, deborah@girlie.com
Roy Dank, Girlie Action, (212) 334-3200 x106, roy@girlie.com
Business/Technology Media Contacts:
Tracy Mlakar, mPRm Public Relations, (323) 933-3399
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