More on Kazaa and Altnet: the two companies are creating a secure P2P network that will operate in parallel with the public Kazaa network — and will pay users to host files on the new network. This looks like an attempt to build a robust distribution network that will support digital rights enforcement, without having to actually buy servers and bandwidth — instead, offer users prizes in exchange for ponying up their own bandwidth. Because it supports digital rights enforcement, content creators such as the record labels will presumably be more comfortable distributing their files this way.
My assessment: It sounds complicated an unwieldy, like a 1999-era business plan. What consumers want in the online music world is something simple, easy to understand, and reliable. That’s what Apple understands. I’m not sure Kazaa and Altnet do.