Hank Berry Ousted as Napster CEO

Bertelsmann AG Executive Konrad Hilbers Assumes Control

Company to Stress Development of New System

In a move long expected by both industry insiders and investment managers, Bertelsmann AG took day to day operating control of Napster. Bertelsmann named Konrad Hilbers as CEO. Hilbers was formerly executive vice president and chief administrative officer of Bertelsmann's music arm, BMG Entertainment

Napster fans worldwide decried the move. Interim CEO Hank Berry was a popular figure who clearly and articulately voiced the hopes and dreams of music fans and Internet file traders alike. But the move was predestined by the Bertelsmann investment of 50 million dollars into the embattled company.

Still, Berry and founder Shawn Fanning had a great run and became cultural icons in the fight for freedom on the internet. Berry, who remains on the board of directors, will be dearly missed by Napster fans.

Company insiders who requested to not be named said the move was seen coming inside the company as Bertelsmann became increasingly unhappy with delays in the development of the new service, originally scheduled to debut this summer. Berry was seen as the fighter when the company now needed a manager. Hilbers is considered a talented manager who can get things done.

Interim CEO Hank Berry came to Napster from an early investor, a venture capital firm that wanted one of their own in control. It's a classic example of the golden rule: "He who has the Gold, makes the Rules."

Napster is longer looking for marches on Washington, Instead Hilbers will be attempting to quietly resolve copyright infringement lawsuits brought by major record labels and become a symbol of the establishment.

With Berry gone, look for the and major labels to quickly settle their lawsuits. In return, don't ever expect Napster to reopen free file trading service under any format or filter. The future is entirely in the "pay per listen" model being proposed by the industry.

By the same token, don't expect any music fans to wait around for the new service to open, or to support it once it does. Napster WAS the answer. Napster's dead.

Napster's song-trading network has been offline since July 2, when its effort to make a quick fix and strengthen its ability to filter out copyright music turned into extended downtime. Hilbers would not say when Napster would be relaunched.