Listen: One Segment
1. Highlighting recent developments in a field of inquiry that has been a major focal point of the FTR series, this program deals largely with gains in the on-line music field by the German Bertelsmann firm.
2. Much of the discussion centers on the Bertelsmann-Napster deal, in which the German media giant offered a modest amount of capital, the nullification of litigation between the companies and a partnership between the firms to use the Peer-to-Peer (P2P) technology to market music on-line. (“Online Music Rebel Napster in Alliance with Bertelsmann” by James Harding and Christopher Grimes; Financial Times; 11/1/2000; p.1.)
3. This deal will give Bertelsmann’s BMG music division access to the largest Internet community in the world. (Idem.) The arrangement will also give Bertelsmann’s e‑commerce division access to the P2P technology that is the foundation of the Napster operational network.
4. The P2P technology is seen as having far-reaching potential for both marketing and (perhaps more importantly) office communications. (“Bertelsmann Opens door to the Workplace for Napster“by Carlos Grande; Financial Times; 11/2/2000; p.6)
5. As the Bertelsmann-Napster deal was taking shape, the European Commission was ruling against the Time-Warner acquisition of EMI, effectively nullifying the transaction. (“EMI, Warner Appear Set to Abandon Deal” by James Harding; Financial Times; 11/7/2000; p. 26.)
6. Echoing past discussion of the EU’s de-facto operation as a vehicle for “pan-German corporatism,” the broadcast underscores the potential significance of Bertelsmann’s merger talks with EMI in the wake of the demise of EMI/Time-Warner deal. (“Bertelsmann Loses Top Two Music Executives” by Christopher Parkes and James Harding; Financial Times; 11/6/2000; p. 30.)
7. A BMG-EMI deal would create the largest music company (by sales), in the world. (“Bertelsmann and EMI Hold talks on Merger” by James Harding, Peter Thal Larsen, Bertrand Benoit and Deborah Hargreaves; Financial Times; 11/11–12/2000; p. 8.)
8. This underscores Bertelsmann CEO Thomas Middlehoff’s promise to have BMG in the #1 position in the world. (“Germans Chart a Course towards No. 1” by James Harding; Financial Times; 11/11–12/2000; p.8.)
9. The influence of Middlehoff (and Bertelsmann) are amplified by his professional “networking” associates that include his good friend Jean-Marie Messier (head of Vivendi, the firm that just acquired Seagram’s Universal Music, currently #1.) (“A New Net Powerhouse?” by Jack Ewing; Business Week; 11/13/2000; p.49.) Middlehoff sits on Vivendi’s board of directors. (Idem.)
10. Andreas Schmidt, the CEO of Bertelsmann’s e‑commerce division, who arranged the deal with Napster, is a former border policeman who, ironically enough, had his hearing damaged by a practice grenade. (“The Man Behind Project Thunderball” by Jack Ewing; Business Week; 11/13/2000; pp.50–51.)
11. Aiming to become number one in all of e‑commerce, Bertelsmann solidified its position in the field of “e‑books” when its Random House division expanded its electronic books inventory. (“Random House Fires a Shot in E‑Book Feud” by Matthew Rose; Wall Street Journal; 11/1/2000; p. B1.)
12. Bertelsmann owns roughly 50% of Barnes&Noble.com, a company that might combine with its parent, the American book retailing giant. (“Barnes & Noble to Link with Dot-Com Version” [Bloomberg News Service]; San Francisco Examiner; 10/27/2000; p. B‑1.)
13. Bertelsmann’s control will be extended in publishing, where the company will be integrating its European and Latin American publishing units. (“Media Titan Surveys His Empire at Frankfurt Book Fair” by David D. Kirkpatrick; New York Times; 10/23/2000; p. C‑19.)
14. Bertelsmann’s influence over publishing is already vast. (Idem.)
Discussion
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