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Napster Faces Backlash From Labels Again — This Time for Late Royalty Payments

Napster is accused of being late with royalty payments by music companies, including several record labels and distributors.

At least half a dozen distributors and record labels are frustrated with the streaming service Napster due to late royalty payments, executives tell Billboard. Napster, despite its history as a pirate-disruptor to the recorded music business around the turn of the century, has long operated as a licensed streaming service, albeit a small one. This hasn’t worked for several companies trying to get money owed to them by Napster, though.“Not only have they failed to pay royalties,” says the first distribution executive, “but they have also been unresponsive when we’ve attempted to resolve these matters.”

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