Where does Napster get its money? It's a good question that came up in light of the Greg Graffin comment posted a few days ago. A reader posted this comment "well I don't think "millions of trendy kids" using napster to download britney spears gets the company any money. napster is free to use, and the company doesn't make any money from the use of its programs."That is true, so where does the money come from? Like everything else in the dot.com world it's speculation. The companies who own Internet backbones (MCI Worldcom), high speed lines (Earthlink, AOL) and infrastructure (Cisco, 3Com) invest money in Napster. Demographics have shown that downloading music is a major reason for people to switch to more expensive, high speed Internet. If less people use Napster due to RIAA control, then there is less demand for high speed internet. MP3s are great, but Napster is still a corporation. The cash flow, for them, is more important then being the "Robin Hood" of music. When Napster tells you to "Call Congress," think about their motivation. MP3s existed before, and will after Napster.Source: Internet Law and Policy Forum
Contributed by Shindo, Posted by Adam White