Table: Battle of the Brands

How Bertelsmann plans to dominate digital music

STEP ONE

Team up with AOL Time Warner, EMI, and RealNetworks to create MusicNet, an online music "warehouse"

STEP TWO

MusicNet gives Napster access to catalogs of three of the five major record labels. With Bertelsmann backing, Napster begins paid subscription service on July 1

STEP THREE

Revenue from Napster customers motivates music majors to settle legal claims. Bertelsmann exercises option to take majority stake in Napster

RISK

Powerful AOL plans rival venture to Napster. Sony and Universal may prolong Napster's legal troubles to buy time as they set up their own online music site

Data: BusinessWeek

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