Napster to affiliate with MusicNet joint venture

NEW HOPE MusicNet, backed by three of the world's biggest music companies, will offer Napster access to its technology and may let it sell music online

BLOOMBERG , SAN MATEO, CALIFORNIA

Duet's service will be offered on Yahoo! Inc's network of Web sites.

An agreement with Napster, the most popular free music-sharing Web site, could give MusicNet an advantage over Duet, analysts said. The licensing agreement with Napster is exclusive, the companies said, preventing Duet from forming its own agreement with Napster.

"Assuming this actually happens, it puts MusicNet in a stronger position," said Philip Leigh, an analyst at Raymond James & Associates Inc.