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Bertlesmann to Offer P2P Platform

By Nate Mook and Ed Oswald | Published March 22, 2005, 11:44 AM

Former Napster parent Bertlesmann said Tuesday it would be offering a peer-to-peer platform called "GNAB" to clients such as mobile phone operators and television stations, which could be used to download large files from participating companies legally. But the P2P aspects are mainly designed to offset distribution costs.

The software is being developed by Bertlesmann subsidiary Arvato, which manages IT systems and touts partnerships with SAP and Microsoft.

While users of the GNAB service would be able to share the files they have downloaded, they can only do so to those who also purchase the content. In effect, the P2P functionality only serves to lessen the bandwidth and storage requirements of a participating company.

German media giant Bertlesmann first joined the P2P race after it bought Napster in 2000. Bertlesmann attempted to save the file-swapping service from shutting down entirely after repeated lawsuits from the Recording Industry Association of America, eventually selling the Napster brand to Roxio.

Bertlesmann co-owns the second largest music label, Sony BMG. Arvato has yet to announce any specific partners for the new GNAB platform.

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Mark Gillespie
Mar 22, 2005 - 4:18 PM

You can pretty much guarentee that none of the cost savings that Bertlesmann make by using P2P distribution methods will be passed onto end users.. Just lining greedy company pockets even deeper.

You only have to take a look at current online music offerings, that are already overpriced, with record companies wanting to push prices even higher still. The reality is, they need to drop prices before most people will adpot them..

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