New Altnet System To Reward Heavy Users

In an effort to drive use of its new digital distribution service, Altnet--the commercial file-swapping service that runs simultaneously with the KaZaA peer-to-peer network--is starting a rewards program for consumers who engage in heavy trading.

Altnet, a subsidiary of Woodland Hills, Calif.-based Brilliant Digital Entertainment, will today announce "Peer Points Manager," which measures sharing of secure content by users. Altnet users who upload the most files will be eligible to win prizes, including plasma TVs, MP3 players, Sony Walkmans, concert tickets, flight discounts, clothing, and DVDs.

Altnet CEO Kevin Bermeister says the system "works to reward and educate users by providing them with incentives to share licensed content within a peer-to-peer environment."

Altnet--which distributes secure files from independent artists, including Ice-T--is looking for ways to motivate consumer adoption of its service. Altnet files, which are wrapped with Windows Media digital rights management technology and generally retail for less than $1 per track, are distributed via KaZaA.

Altnet has been testing its service on a limited basis for nearly a year, mainly using free promotional content. The company, which says it is looking to add more pay-per-download material, is seeking content deals with the majors.