Roxio has acquired online music service Pressplay from Universal Music Group (UMG) and Sony Music Entertainment and plans to revive it under the Napster name before March 2004. As previously reported, Roxio, a maker of CD burning software, acquired Napster’s assets late last year.
Should the new Napster service turn a profit, UMG and Sony are each eligible to receive up to $6.25 million. Additionally, UMG and Sony each will have a representative on Roxio’s board of directors.
The two major label groups have pumped an estimated $60 million into developing Pressplay since its bow in 2001. The venture has content licensing deals with all five major labels and a host of independents, as well as distribution agreements with Roxio, Yahoo!, and Microsoft.