A majority of Napster users have said that they'd be willing to pay a monthly fee to use the service, according to a survey by Cambridge, Mass.-based WebNoize. So to build a brand, what Bertelsmann needs even more than half a dozen devalued online music companies is a bigger lineup of singers and rights to more songs. By combining its publishing business with EMI's, Bertelsmann could offer more than one-fourth of the world's music in its subscription service. So analysts have given the union their blessing. The music industry couldn't be more divided right now.
Some companies insist that the world of home music jukeboxes and subscription tunes is here already.
Others think it's five years away, and still others say that it'll never happen. The pairing is hardly a done deal. EMI might have to shed some of its music units to get the combined market share down to an acceptable range for the European Commission. Time Warner might be able to push an EMI merger through regulators if it spins off enough of its music interests. So for now, EMI is so appealing to its bigger competitors that it can afford to be choosy about its terms.