The controversial file-swapping programme, Napster is offering $1 billion to the major labels, songwriters, independent labels and artists over five years. The major labels will receive $150 million per year for a non-exclusive license, divided according to files transferred. $50 million per year will be set aside for independent labels and artists to be paid out based on the volume of transfers.

Napster say that their users will be prepared to pay, "We do know that Napster has become an important part of daily life for a lot of people."

Napster is planning a tiered membership model that includes a 'Basic Membership' plan and a 'Premium Membership' plan. Napster is looking at a price range of $2.95 to $4.95 per month for the Basic membership that would have a monthly file transfer limitation built in. The Premium membership, which could cost between $5.95 and $9.95 per month would offer unlimited file transfers. They expect the new service to begin this Summer.