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								| 2001: The Year in Online Music Article by David Nevue - Midnight Rain Productions
 
 
 Back to Music Promotion 101
 
 
 2001 was a year that brought a lot of change to the online music
 business. In reviewing the big stories of the last year, a few
 really stood out...
 
 NAPSTER FALLS
 At the beginning of 2001, then Napster CEO Hank Berry stated that
 his goal for 2001 was to "make Napster prosper as a real
 business. To see that it is just a normal part of how people
 listen to music." Instead, after being pelted with copyright
 infringement lawsuits from the music industry, Napster was forced
 to shut down. Napster hopes to launch a new, completely legal,
 subscription service in 2002. Prediction: It's going to be an
 uphill climb for Napster. Only a very innovative, user-friendly
 technology that gets rave reviews will save it. Napster's running
 out of time.
 
 COPY-PROTECTED CDs ENTER THE MAINSTREAM
 In a effort to fight rampant piracy on the Internet, the music
 industry introduced copy-protected CDs into the general
 marketplace. But angry consumers have been frustrated by the new
 technology, which has been reported, in a few cases, to prevent
 CDs from being played on a computer at all. Look for evolving
 copy-protection standards in 2002, as well as more complaints
 from frustrated consumers as copy-proof CDs become the norm.
 Prediction: A very hot topic in 2002.
 
 MP3.COM GROWS UP
 In 2001, MP3.com went from being an online project driven by the
 independent music community, to entering into marriage with the
 music industry. It was a year of drastic change, as MP3.com
 struggled to both redefine itself and avoid the fate of Napster.
 After its acquisition by Vivendi Universal, and the changes that
 followed, many unhappy independent artists abandoned MP3.com.
 But, as 2001 closed, MP3.com had, in the end, appeared to have
 changed for the better. Expect 2002 to be a good year for
 MP3.com, as well as for artists who continue to optimize MP3.com
 as a promotion tool for their music.
 
 RIAA FIGHTS NAPSTER LOOKALIKES
 With Napster in lawsuit limbo much of the year, Napster clones
 jumped into the void it left behind, with the RIAA (Recording
 Industry Association of America) filing more lawsuits along the
 way. Aimster, Audiogalaxy, and Gnutella did their best to attract
 former Napster users, but MusicCity's Morpheus stepped up as the
 heir-apparent by the end of 2001. This year, expect to see this
 battle to heat up, as the Napster/RIAA battle of 2001 becomes the
 Morpheus/RIAA battle of 2002, though to a lesser degree.
 
 MUSIC INDUSTRY GETS GRILLED
 The controversial practices of the recording industry came under
 much legal fire last year from such highly visible artists as
 Elton John, LeAnn Rimes, Don Henley and Courtney Love. Even the
 Senate Judiciary Committee got involved, holding hearings on 'The
 Future of Digital Music,' examining the future of online
 distribution and how copyright laws should best be applied. Most
 recently, the recording industry was condemned by the FTC for not
 doing enough to curb advertising of inappropriate material to
 children. By being the legal attack dog of 2001, the recording
 industry drew the ire of many, and by the end of 2001 the media
 began to noticeably favor the underdog. This fight is just
 beginning. In 2002, expect to see more artists rallying to take
 on the record industry, and watch the industry struggle with
 exactly what to do about it.
 
 PRESSPLAY, MUSICNET SUBSCRIPTION SERVICES LAUNCH
 The end of 2001 saw the launch of these, the first pay-for-music
 subscription services. Opening to less-than-rave reviews, these
 two services left music fans wondering, 'Is this it?'. But, with
 some record labels investing their future into these services,
 expect them to become better established in 2002. There will also
 be technological improvements as the year unfolds. At least, we
 all hope so.
 
 So, there you have it. The stories shaping the future of online
 music. 2002 looks to be a year that will define how we pay for
 and receive mainstream music in the future, both on the Internet,
 and in the your local record store.
 
 That said, I hope that in 2002 you will continue to support
 independent music. All this talk of lawsuits, copyright
 infringement, piracy, pay-for-play, rules, laws, and Senate
 Judiciary Committees just makes me long for sweet, simple music.
 
 Just give me the music.
 
 -----
 
 David Nevue is the founder of Midnight
									Rain Productions and the The Music Biz Academy.
									He is also a professional
									pianist, recording artist, and author of the book, "How to Promote Your Music Successfully
									on the Internet."
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