Article Abstract:
Napster Inc. is altering its Internet music search program software in alignment with Indiana University, which had blocked the MP3 program in response to the software's domination of over 60% (and rising) of the traffic between the campus and the Web. Napster can now be downloaded away from the public network. The company hopes other colleges lift the ban on their software.
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Apple is using its Macintosh trade show in San Francisco, during the week of Jan 6, 1997, to reveal the details of its plan to develop a new operating system based on its acquisition of Next Software Inc in Dec 1996. Apple's new operating system, code-named 'Rhapsody,' will be offered in conjunction with its current operating system, known as System 7. Apple is attempting to reassure its faithful customers, as well as software developers, that it has no immediate plans to abandon its existing Macintosh operating system prematurely while implementing the Next-based system. Apple plans to release a beta version of Rhapsody to software developers later in 97, and it expects to have the customer version complete by 1998. Apple's attempts to generate enthusiasm over its new operating system at the MacWorld show have been overshadowed by concerns regarding the company's long-term survival.
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Microsoft's disclosure on Jan 7, 1997 that it will staff 100 employees to develop application software for the Macintosh is simultaneous with Apple's detailed announcement of its new OS. Microsoft's software is a crucial ingredient for Apple's chances of success, since Apple needs software developers to write innovative applications for the Macintosh while it concentrates on its new OS. Microsoft also benefits from the deal in which Apple has agreed to include Microsoft's Internet browser software with its products. Apple's CEO Gilbert Amelio has revealed that the technological base for the new OS will be provided by Apple's $400 million acquisition of Next Software Inc. Amelio continues to maintain that Apple's turnaround strategies are working despite the company's recent quarterly loss of over $100 million.
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