New online file-sharing service fills a need -- privately

Dec. 3, 2000

 

By JIM BROOKS

File-sharing communities like Napster and the recently shuttered Scour Exchange have struggled with claims the services promote copyright violations by allowing the mass distribution of music and video performances.

Users say they're simply trying before buying, and recent studies indicate that many Napster users are active buyers of music CDs, tapes and videos.

That hasn't stopped industry legal eagles from pursuing action against Napster and Scour Exchange. The mounting legal pressure on Scour, along with problems generating revenue, was directly responsible for the service's closure.

In a last-ditch effort to save itself, Napster has signed a deal with Bertelsmann, owner of BMG Music and the key to the service's legal survival.

But a new file-swapping service has debuted, and this one isn't quite so open to prying eyes.

GlobeDrive's new Napster-like service lets users swap files in a password-protected, invitation-only private club-type of envirnoment.

GlobeDrive's network will support what's known as "peer-to-peer" file transfers. This means two GlobeDrive users can swap files without the watchful eyes of the music industry.

This doesn't necessarily mean the service is out to help music pirates, according to an interview with GlobeDrive's founder, Yossi Krasnjanski.

GlobeDrive is reportedly in talks with record industry officials regarding copyrights and piracy concerns.

GlobeDrive, launched in August, states its network is more advanced than earlier peer-to-peer networks like Napster and Scour Exchange.

GlobeDrive will allow users to upload files to distant hard drives as well as download from other users -- a first among peer-to-peer software.

At present, GlobeDrive isn't as open a community as Napster users might be accustomed to. GlobeDrive users can't search every users' shared files in the same manner that Napster users can.

Napster users will likely find GlobeDrive's service very restrictive.

GlobeDriver users may join a group by invitation only, and then must stay with that specific group of file-sharing users. Users may only swap files among their specific groups.

Access to the group is unlocked by a secret password. There's no listing of the groups and no way to determine what other groups exist even if you're a member of a GlobeDrive group.

Group members have control over who gets access to hard drives and what members have "read-only" access privileges.

With other peer-to-peer services feeling the squeeze of legal action from the music and motion-picture industries, I expect GlobeDrive to follow Napster's lead and develop into some sort of subscription model if it is to survive.

SPIDEY'S WEB. Using the Web is nothing new to my favorite Marvel comic book hero. In fact, Spider-man's publisher is getting into the Internet business in a big way.

IConnect, a provider of branded Internet services, has launced MarvelOnline.net, an Internet service provided by Marvel Enterprises, publisher of Spider-Man and numerous other comic book superheroes.

The national service offers Internet access, branded e-mail addresses (like jbrooks@x-men.com), and other Marvel features. Unlimited access is $19.95 per month, and $4.95 gets you access to all the features of MarvelOnline if you have your own Internet access.

Software to join MarvelOnline.net is available for free download at the site or on a CD.

MarvelOnline.com was launched last summer with a branded e-mail service that claims 30,000 registered users.

And for fans of the man who created Spider-man and so many other Marvel superheroes, don't forget a visit to www.StanLee.net.

AUTO WEB WAR. Most automakers have launched Web sites aimed at defending their sales turf from the rising threat of non-dealership online car-buying sites.

Sites like AutoByTel.com and others worked to match car buyers with dealers who would agree to sell at a desired price.

Automakers' Web sites are aimed to supporting their dealership networks, which at one point were believed to be vulnerable to online auto sales.

But the turmoil among dot-com companies this year has forced many independent automotive sites to change leadership, layoff staff or change focus.

The future of dealerships is secure, but the Internet has certainly changed how cars are both bought and sold.

A majority of auto buyers use the Web to research the purchase of a new car or truck. Few car shoppers actually seem to have an interest in buying online -- though that number is slowly growing.

Sites like Autobytel.com proved popular because buyers didn't have to deal with auto dealers and salesmen and saleswomen.

Most dealers have become more Internet savvy and changed some of their processes for handling with customers both live and online.

Look for improved Web sites for many automakers by the first of the year, including Toyota, Lexus and Ford.

TECH STOCKS' WILD RIDE. A year or so ago, I remember reading about billionaire investor Warren Buffett's losses and missed opportunities because he avoided technology stocks.

Buffett, who has long-shunned Internet-related stocks as "risky," appears to have been correct to have avoided sinking his money into the dot-com craze.

Buffett has long maintained that he only invests in companies whose business he understands.

He prediced last April that "the number of failures will far outweigh the number of successes" among dot-com companies.

His prediction rings truer with every passing week.

The Nasdaq composit index was down 23 percent for the month of November, according to a story by the Associated Press.

In fact, tech stocks have had their worst year since the Nasdaq was created 29 years ago.

The Nasdaq is down 36 percent this year -- and there's still room to fall by the end of this month.

It's a strange contrast to 1999, which was the Nasdaq's best year ever. Fueled by dot-com euphoria, the index soared last year. Many individual stocks soared like Fourth of July skyrockets.

For dot-com businesses, it is time to pay the bills or close. Even "older" tech stocks like Dell Computer Corp. and Gateway have been reporting lackluster sales and earnings forecasts.

Analysts say the trend should hit bottom soon and tech stocks will rebound. For many dot-coms, the rebound will be too little, too late.

Comments and questions about this column may be sent to jbrooks@myoldkentuckyhome.com, or visit www.myoldkentuckyhome.com on the World Wide Web.

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