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Altnet Testing Payment Service For Use On KaZaA

By Brian Garrity, N.Y.
Publication: Billboard Bulletin
Date: Friday, September 20 2002
Altnet has begun commercial testing of its new payment system, which allows KaZaA users--traditionally consumers of free pirated music--to buy label-sanctioned downloads on an á la carte basis.

Altnet is a secure file-swapping service that runs simultaneously with the

KaZaA peer-to-peer network. Tracks are wrapped with Windows Media digital rights management technology.

Initial tests of the micro-payment system, which will offer tracks for less than $1, focus on content from Palm Pictures, Best Buy's Redline Entertainment, unsigned-artist site Cornerband.com, and 2Ksounds.

Altnet content to date has been offered only as time-out promotional downloads. The company reports that it has been distributing an average of 150,000 secure tracks per day. Users who have downloaded timed-out tracks will now be offered the ability to purchase the songs on a permanent basis.

Technology from AllCharge and DuoCash is used to power the Altnet payment system. The system supports credit cards, debit cards, prepaid digital cash cards, prepaid phone cards, and billing through phone service providers.

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