To: mormon_thomas_crown who wrote (370 ) 3/2/2001 3:06:55 PM From: StockDung Respond to of 609 Germany's Bertelsmann nurtures own file swap service HAMBURG, Feb 28 (Reuters) - German media group Bertelsmann <BTGGga.F> confirmed on Wednesday that it had been developing its own online file swapping service Snoopstar but said Napster would remain the focus of its file sharing strategy. Bertelsmann, which owns music group BMG and recently struck an alliance with online music swapping service Napster, said snoopstar.com had been one of several test projects it had been working on but the group has put the service on hold for now. Bertelsmann had been testing its Snoopstar site in recent weeks as a search engine, allowing users to hunt down music, videos and other files in various online file sharing services such as Napster, Gnutella and iMesh. However, Bertelsmann has now shut down the service amid speculation that the German media company was developing Snoopstar as an alternative to Napster. "We didn't want to fuel any misunderstandings with the website," said Alexander Adler, spokesman for Bertelsmann eCommerce Group which houses Snoopstar and has been leading Bertelsmann's efforts on developing a new version of Napster. Bertelsmann broke ranks with other major music companies last year by striking a deal with Napster to develop a subscription version of its free song-swap site. Napster, which has attracted some 60 million registered users, is one of the most popular services on the Internet, allowing users to copy music from other people's computers without the permission of artists, labels or publishers. However, Napster now faces the possibility of being closed down in its current free format, after a U.S. appeals court ordered the online song swap site to stop its millions of users from trading copyrighted material. Bertelsmann and Napster plan to launch their new service this summer, charging users between $2.95 and $4.95 a month for a basic subscription service and $5.95 and $9.95 a month for a premium service. Bertelsmann and Napster have been trying to entice other major music groups to join their new service but talks have so not yielded any new partners. Vivendi Universal's <EAUG.PA> chief executive Jean Marie Messier complained on Tuesday that Napster would receive too generous a share of the revenues under current proposals. 16:35 02-28-01