Webnoize Newsletter Pseudo-archive from 1999-2000
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FROM: seanfenlon@gmail.com
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TO: post@abovo.co
RE:
RE ALL:
FWD:
My first startup was www.ListenSmart.com – founded in 1999 and launched in March 2000 (yeah, pretty much the worst possible timing for a dot-com launch. :-S)
I was completing my Doctorate in Music at the time, but I knew nothing about the music business beyond what I had read in books and nobody knew much about the emerging digital media space.
My greatest source of knowledge and education was the famous “Pho” email list managed by the legendary tech-media visionary and ListenSmart.com board member Jim Griffin: http://www.onehouse.com/pho.htm
My second greatest source of knowledge and education was via Webnoize – a web publication/newsletter and tradeshow that was at the epicenter of online music until 1) the dot com collapse and 2) the Napster-effect, which froze/paralyzed the online music space. Webnoize shut down in 2002: https://www.cnet.com/news/webnoize-quietly-suspends-its-operations/
I was going through my old backup storage files and came across a compilation of the Webnoize newsletters which I believe have been lost in the digital ether. Thus, I’m posting them here on Abovo to be archived online forever.
Some names/terms/concepts I haven’t even though about for years:
SDMI
Liquid Audio
Sony MiniDiscs
Winamp
RioPort
CDnow
ArtistDirect IPO
And the list goes on and on. :-)
T O D A Y ' S W E B N O I Z E 9 . 24 . 1999
_______________________________________________________
With Christmas looming, reports say that SDMI proceedings have become tense. Nothing less should be expected of a process that brings together behemoth industries with conflicting agendas.
The computer and consumer electronics industries are racing to get software and portable players into consumers' hands, while major labels sitting on the Fort Knox of content want complete control of the emerging digital music marketplace, even if it means stalling as consumers engage in rampant casual piracy.
But the news here isn't that SDMI may not meet deadlines. Let's be serious. Those deadlines were considered insanely ambitious from day one, and farfetched under any circumstances, let alone the competitive and highly staked ones that surround SDMI.
While documenting angst is arguably appropriate, there's nothing particularly revelatory about identifying the industries' competing interests. The real news with SDMI will be its outcome. Let the major labels drag their feet; they're only creating opportunity for the underdogs of the industry, and in turn, providing the David vs. Goliath storylines hungry journalists love.
N E W S H E A D L I N E S
_______________________________________________________
-> New Sony Walkman Could Threaten Diamond Rio
-> SDMI Maintains All Well With Portable Device Effort
-> EMusic.com, CD Radio Offering Shares to Public
-> CDnow Adds Webcasting to the Mix
-> RealNetworks, MP3.com in Promotion Deal
S N I P P E T S & L A D D E R
_______________________________________________________
-> RealNetworks Doing 'Rage' Preview
-> Liquid Intros Artist and Studio Services
-> Artists Backing Low Power Radio Proposal
-> ForeignTV.com Highlighting Red Hot Videos
-> Nextec Launches MP3 Storage Service
-> Disney Relaunches 'Net Radio Site
-> Rolling Stone, TDK Launch Online Time Capsule
-> Ladder: Hastings Entertainment
S T A R T N E W S
_______________________________________________________
in TECHNOLOGY
-> New Sony Walkman Could Threaten Diamond Rio
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5894
Pushing a proprietary digital storage format, Sony Electronics
has developed a version of its popular Walkman portable stereo
that could present strong competition for Diamond Multimedia
Systems, the leading developer of products that let consumers
play music downloaded from the Internet.
Expected to ship to the U.S. market in January at a price of
around $400, the new Walkman uses Sony's Memory Stick, a
removable memory card that stores up to 80 minutes of digital
music. A music enthusiast can use the Memory Stick and the new
Walkman to take on the go songs downloaded from the Internet,
or transferred from a compact disc to a PC.
The Walkman is specifically designed to work with Sony's line
of personal computers, which integrate personal computing with
digital media devices like cameras, camcorders, DVD drives and
Sony MiniDisc units.
Sony estimates more than 30 consumer electronics companies will
eventually utilize Memory Stick in digital devices, with
candidates including AIWA, Casio, Fujitsu, Sanyo and Sharp.
By introducing the new Walkman, Sony hopes to carve out a slice
of the portable digital audio player market opened up by
Diamond Multimedia Systems and its Rio PMP300 device last fall.
The latest version the Rio features 64MB of built-in memory,
room for over an hour of CD-quality music, and much more if one
compromises some quality. The $269 device can be expanded to
96MB using a 32MB memory card that costs about $100.
In addition to Sony, Diamond faces competition from consumer
electronics companies Creative Labs, Philips Electronics, RCA
and Samsung, all of which have either introduced products to
the market, or intend to by the end of the year.
In a press statement, Sony indicated that the Memory Stick
Walkman system is compliant with portable audio device
specifications issued earlier this year by the Secure Digital
Music Initiative (SDMI) [see 6.28.99 SDMI Releases Portable
Audio Specs].
In May, Sony Music announced plans to make music available for
download and purchase through the Internet using Microsoft's
Windows Media suite [see 5.12.99 Microsoft and Sony Pair for
Downloads, Promotions].
The underlying technology behind the Memory Stick card is
Sony's MagicGate, a copyright protection solution that features
a microchip that is embedded in both player/recorders and
digital media in order to ensure that protected content is
transmitted only between compliant devices and media, according
to the company.
MagicGate and the accompanying OpenMG technology were rolled in
February [see 2.25.99 Sony Pulls 'Magic' Digital Music
Solutions Out of Its Hat]. OpenMG uses a hardware module and
software to encrypt digital music content stored on a hard disk
or similar storage device. Internal authentication technology
works to protect content against unauthorized copying to
compliant devices and media.
_______________________________________________________
in INDUSTRY
-> SDMI Maintains All Well With Portable Device Effort
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5901
In seeming response to public criticism of its ongoing effort,
the Secure Digital Music Initiative (SDMI), a collaborative
effort joining music and technology companies to establish
standards for new music formats, issued a press release today
saying that technology and related licenses necessary for
portable devices are forthcoming.
SDMI held two meetings in New York this week, and plans to meet
in Kyoto, Japan, the week of October 18. But some participants
and analysts are saying things are not moving quickly enough.
CNET's News.com obtained and published part of an email message
sent to SDMI executive director Leonardo Chiarglione and SDMI
members from Sony Vice President Geoffrey Anderson. The memo
read, in part, "Despite the months of hard work by the SDMI
participants, SDMI portable device manufacturers and SDMI
service providers are still unable to prepare for this holiday
season."
A statement issued by SDMI this morning said technology
essential to the new portable device market will be made
available under a license for shipping after October 1.
One of SDMI's most publicized goals has been to establish
standards and technology for portable devices (such as Diamond
Multimedia's popular Rio portable MP3 music player) in time for
competing consumer electronics manufacturers and music
companies to release SDMI-compliant products for the winter
holiday shopping season.
MP3.com quoted an unnamed industry executive who said "no one
is going to release products by Christmas."
Jim Burger, an attorney with the Washington firm of Dow, Lohnes
& Albertson working within SDMI to represent computer companies
Apple, IBM, Hewlett Packard, Compaq, Intel, Microsoft and
STMicroelectronics, maintained that SDMI's New York meetings
were productive.
"Progress was made but there are still a few things that remain
to be accomplished," Burger said.
In August, SDMI selected watermark technology from Cambridge,
Massachusetts-based ARIS Technologies for use in initial Phase
I audio devices [8.9.99 SDMI, 4C Select ARIS as Watermark
Solution for Downloadable Music, DVD-Audio].
ARIS' technology will be used in devices to indicate when the
software used by a Phase I device should be upgraded by a user
to incorporate Phase II technology. Until that time, all music
compatible with a particular device will be playable, whether
encoded in a protected or unprotected format. Once Phase II
technology is ready, detection of the watermark will
automatically let a user know that the software may be upgraded
to play new, protected music releases.
If a consumer chooses not to upgrade a device, it will not play
new music releases that incorporate SDMI technology.
_______________________________________________________
in FINANCE
-> EMusic.com, CD Radio Offering Shares to Public
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5897
Looking to raise money to add music content and expand sales
and marketing efforts, Internet music company EMusic.com, Inc.
has announced a public stock offering worth $84.3 million.
The company will sell 5.27 million shares at $16 per share,
while some of its stockholders will make available an
additional 480,000 shares, at the same price. The offering is
being led by CIBC World Markets, ING Barings, Prudential
Securities and Volpe Brown Whelan & Company.
EMusic plans to use the proceeds to pursue licensing agreements
with record labels.
Currently, EMusic.com features music from dozens of independent
labels, including Bomp!, Epitaph, Invisible, Rykodisc, Taang!
and Ubiquity. The web site sells complete albums for $8.99, and
individual tracks for $0.99.
The company also owns the Internet Underground Music Archive
(IUMA), a recently relaunched web service that caters to
unsigned artists [see 9.15.99 Relaunched IUMA Site Integrated
with EMusic.com]. IUMA's web site houses about 5,000 web sites
for unsigned artists, each of which contains multiple pages of
streaming songs, lyrics, artist bios, photos, tour dates,
images and artwork.
In other financial news, CD Radio, Inc., a company developing a
satellite-based radio broadcast system, will sell shares of its
common stock, as well as certain promissory notes, in an effort
to raise $200 million.
The company priced 3 million shares of common stock at $24.75
per share, and also plans to convert $125 million of
subordinated notes into common stock priced at $28.46 per
share. The company will use proceeds to continue building its
radio network.
Slated to begin U.S. broadcasts late next year, CD Radio will
deliver a subscription-based network of 100 channels of music
and other programming to motorists, via special CD Radio
receivers that Ford Motor Co. has agreed to install in its cars
and trucks beginning in the first quarter of 2001 [see 6.16.99
Ford to Install CD Radio Receivers in Vehicles].
The company's competitor, XM Satellite Radio, also plans to
launch a similar service in 2000.
_______________________________________________________
in MARKETPLACE
-> CDnow Adds Webcasting to the Mix
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5896
Online music retailer CDnow has broken into the webcasting
business, hosting a three-day tenth anniversary party for
Matador Records.
Co-sponsored by Apple Computers and CollegeClub.com, and
produced by Live On Line, CDnow's inaugural webcast happened
last night, live from New York City's Irving Plaza.
Festivities will continue tonight and Saturday night. Among
Matador acts taking part are Bardo Pond, Cat Power, Come,
Cornelius, Mogwai, Pavement, Solex and Mary Timony.
The CDnow cybercast area also features a photo gallery, band
biographies and sound samples from participating artists.
According to Evan Schwartz, senior director of content and
community for CDnow, the company had considered adding a
webcast service for some time, before going ahead with the
current promotion because CDnow are "big fans of Matador's
music."
CDnow plans a more public roll-out of its webcast services in
the near future, Schwartz said, and plans to host more live
events by the end of the year.
As the retailer prepares to complete a merger with club-based
music and home video marketer Columbia House, CDnow stands to
benefit from new ties with Sony Corp. and Time Warner, joint
owners of Columbia House, Schwartz said [see 7.13.99 Sony and
Time Acquire Merge Ecommerce Operations; Acquire CDnow].
Relationships with Sony Music and members of Warner Music Group
should provide CDnow with opportunities to provide exclusive
webcast content, Schwartz said.
At July's Plug.In Forum, CDnow President and CEO Jason Olim
said that while CDnow will sell music from all of the Big Five
music companies (in addition to Sony and Warner, BMG
Entertainment, EMI Recorded Music and Universal Music Group),
as well as from independent labels, the retailer will also
showcase and promote releases from its new owners.
While many online retailers offer regularly scheduled chats
with music artists, few host webcasts. Custom CD compilation
web service EZCD.com offes exclusive webcast concerts in
partnership with New York nightclub CBGB [see 2.19.99 EZCD.com
In Cybercasting, Compilation Deal With CBGB].
_______________________________________________________
in INDUSTRY
-> RealNetworks, MP3.com in Promotion Deal
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5895
Through an agreement with RealNetworks, leading Internet music
company MP3.com will promote its artists to users of
RealJukebox music downloading and management software.
The deal will let RealJukebox users choose to have MP3.com's
top ten songs delivered each week to their computer desktop. In
return, MP3.com will feature at its web site Real's jukebox
application as preferred software, and host a RealJukebox
custom faceplate and a web page of recommended songs.
Other terms of the agreement were not released.
For MP3.com, the pact provides increased exposure for the
150,000 songs available through its site. Those songs will now
be accessible through the "Get Music" section of RealJukebox.
RealNetworks claims more than ten million unique users have
downloaded the jukebox app since its May release. A new version
released this week lets users download, play and manage music
videos [see 9.23.99 RealNetworks Deal Points CheckOut.com in
Digital Direction].
Today, industrial rock icon Nine Inch Nails became the first
act to offer a full-length music video for download via
RealJukebox. The video for "We're In This Together," the first
single off NIN's The Fragile, may be downloaded through
RealGuide and the official NIN web site.
S N I P P E T S & L A D D E R
_______________________________________________________
...RealNetworks and Sony Music Entertainment's Epic Records are
unveiling an Internet preview of three downloadable Rage
Against The Machine tracks, two from the band's forthcoming
album and one unreleased live track. The preview begins in
early October and will be available exclusively through
RealNetworks' RealJukebox at www.realguide.com/ratm and at a
number of forthcoming participating radio station web sites.
Details on the promotion and radio station web sites, as well
as on the exact Internet debut and time-out dates for the
singles, will be posted at the site. In addition, Rage fans who
purchase the new album will be able to download a free, secure
live bonus track through a RealJukebox technology that allows
them to connect the CD to a private web site.
...Liquid Audio has introduced a service that allows
independent musicians and record labels to promote and securely
sell music on the Internet. Liquid Platinum lets users post
masters of their music on the Internet, and choose to make the
their songs available either for promotion or for sale via the
program. Liquid Audio then distributes the tracks as part of
its catalog to retail sites in the Liquid Music Network. Liquid
Audio has also taken the wraps off Liquid Platinum Studio, a
reseller program that enables recording studios to offer
Internet mastering and distribution to clients as services
using the Liquid Platinum solution, thereby providing studios
with a new revenue source, according to Liquid.
...A letter from high-profile music artists and industry
leaders encourages the Federal Communications Commission to
move forward a plan to implement a new class of low-powered FM
radio stations. The letter was signed by at least three dozen
artists, industry leaders and music fans, including Bonnie
Raitt, Jackson Browne, Mike Watt, writer Michael Azerrad,
artist/educator Ellis Marsalis, Mark Arm (Mudhoney), Amy Ray
(Indigo Girls), Steve Shelley (Sonic Youth), Lenny Kaye and Ian
MacKaye (Fugazi/Dischord Records). If low powered commercial
stations are allowed by the new plan, it could open new
opportunities to Internet music businesses looking to build a
presence in terrestrial, "over-the-air" radio. The National
Association of Broadcasters has argued that low-power stations
threaten the eventual and anticipated transition to digital
radio broadcasting, and will "challenge the FCC as guardian of
the spectrum." A political group affiliated with the artists,
the Low Power Radio Coalition (LowPowerRadio.org), is preparing
to announce dates, times and venues for a series of benefit
concerts slated to run October 14-24.
...Beginning September 27, Internet broadcaster ForeignTV.com
will host music videos and interviews featurings artists and
producers from the new Ondo Sonora: Red Hot + Lisbon CD. Among
the highlighted videos will be ones featuring k.d. lang and
Portuguese guitarist Antonio Chainho, and David Byrne and
Caetano Veloso. Also, Red Hot Organization founder John Carlin
and Red Hot producer Beco Dranoff will be showcased in
interviews. Proceeds from sales of the latest album in the Red
Hot series will benefit AIDS prevention causes targeting
Portuguese-speaking communities around the world.
...Nextec Communications has introduced its MyMP3Storage.com
service, which offers members 50 megabytes of free online
storage, enabling them to access the music files from any
Internet-ready computer. The advertiser-supported service is
powered by FreeDrive, cyber-storage technology developed by
Nextec. MyMP3Storage.com also allows members to sign up for 20
MB of FreeDrive file storage space for graphics, documents and
other media.
...Disney.com is rolling out through October its enhanced Radio
Disney web site. Located in the Zeether, the new destination
created exclusively for children at www.disney.com, the
expanded Radio Disney site provides a number of online kids'
activities. Highlights of the new Radio Disney site include a
virtual DJ booth that allows kids to design their own Radio
Disney station; a "Cool-O-Meter" that lets kids vote on the
music they want to hear; access to a "Laugh Shack" with Radio
Disney's on-air jokes told by kids; top 30 and request lines;
and a segment called Gross Me Out, featuring facts about any
number of "gross" topics.
...Music fans can weigh in on their favorite songs of the 1990s
on a new site from RollingStone.com and TDK.com. The '90s Music
Time Capsule includes a look at Rolling Stone magazine's
Reader's Poll and Critics' Poll results, as well as other
notable events and trivia from each year of the decade. A
sweepstakes on the site asks visitors to register their
favorite 10 songs of the '90s. Registering their opinions makes
visitors eligible to win a 10-pack of TDK CD-TWIN-R blank CDs,
a Harman Kardon CDR 2 consumer audio CD recorder and a $150
shopping spree at Tunes.com. The sweepstakes closes November
15.
...Dennis McGill has resigned his posts as vice president of
finance and chief financial officer at multimedia entertainment
retailer Hastings Entertainment, effective October 15. He will
assume the position of senior vice president and CFO of Miami
Cruiseline Services. Hastings sells music, books, software,
DVDs and video games at its traditional superstore locations,
as well as at its retail web site (gohastings.com).
T O D A Y ' S W E B N O I Z E 9 . 23 . 1999
_______________________________________________________
Sen. Sam Brownback (R-KS) wants to establish a Senate committee "to study the causes and reasons for social and cultural regression," and "explore means of cultural renewal." The Senate was expected to vote today on a task force somewhat resembling the committee Brownback proposed in August.
RIAA President and CEO Hilary Rosen predicts that any such group will focus much of its attention on contemporary music.
"This is not a witch hunt," said Sen. Trent Lott (R-MS), who supports the proposed committee. "There is a problem there and we ought to give some serious thought to it."
It's presumptuous and potentially irresponsible of anyone to assume causal relationships between elements of culture and states of society. While reams of research have considered such a relationship, results are inconclusive and hotly debated by the world's most knowledgeable social scientists.
Why do senators feel pop culture products are the most intuitive source of the nation's problems? We are inclined to agree with Rosen that, "It just may be that these issues are more complex, and that there are no neat political fixes."
N E W S H E A D L I N E S
_______________________________________________________
-> ARTISTdirect Files for $86.25M IPO
-> Musicmaker.com in $20M Retail, Equity Deal with America Online
-> Navarre Enters Digital Music Age
-> RealNetworks Deal Points CheckOut.com in Digital Direction
-> Proposed Senate Task Force Would Investigate 'Violent' Music
-> Aerosmith, Clapton and Queen Among Rock Hall Nominees
S N I P P E T S & L A D D E R
_______________________________________________________
-> Samsung Licensing InterTrust's DRM Technology
-> Web Venture to Sell Rare Music, Collectibles
-> Seattle Museum Adding Interactive Studio Technology
-> CDbeat Opens Springsteen, Korn 'Virtual' Clubs
-> Ladder: Rykodisc
S T A R T N E W S
_______________________________________________________
in FINANCE
-> ARTISTdirect Files for $86.25M IPO
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5875
ARTISTdirect, Inc., operator of the Ultimate Band List (UBL)
and iMusic web sites, as well as host of numerous
artist-specific online retail stores, hopes to raise more than
$86 million through an initial public stock offering.
Underwritten by Morgan Stanley Dean Witter & Co., the IPO could
hit the Nasdaq Market within six to eight weeks.
The company has not yet determined the number of shares to be
offered, nor the offering price range, according to a
registration statement filed with the Securities and Exchange
Commission (SEC).
The company plans to use proceeds to add content to its web
network and expand its sales and marketing efforts, according
to the company's SEC statement.
The ARTISTdirect online network includes music search engine
UBL, community site iMusic the ARTISTdirect Superstore, a
retail site offering CDs and related merchandise, and several
official sites and stores for artists such as Aerosmith, the
Beastie Boys, Korn, Limp Bizkit, Ozzy Osbourne and Tom Petty.
The company also operates the ARTISTdirect Talent Agency and
Kneeling Elephant Records.
In July, the company exchanged shares of its stock for
long-term agreements with several music artists to maintain
online retail sites offering CDs and merchandise, collector's
items, news, information and otherwise unavailable downloadable
MP3 music [see 7.19.99 ARTISTdirect Trading Equity for
Exclusive Merchandising Deals; Secures 45 Major Acts].
Artists involved, including Aerosmith, Tori Amos, the Red Hot
Chili Peppers and Sonic Youth, will participate in the success
of the whole company as equity shareholders via stock options.
ARTISTdirect would not disclose details of individual deals,
but option grants were calculated based upon historic record
sales figures, tickets and merchandise, as well as the extent
to which each artist agreed to actively participate in specific
marketing activities and site development.
The partnerships are contracted to run a minimum of three
years; ARTISTdirect Vice President Nick Turner said some
artists have committed to longer term contracts.
The company's other shareholders include Constellation Venture
Capital, Chase Capital Partners, Psilos Group Partners, as well
as several individual investors.
Launched in 1994, UBL is arguably the most popular music search
engine on the Internet. The site provides music surfers with
links to artist web sites, as well as music news, webcasts,
concert tour information, MP3 downloads and a direct connection
to ARTISTdirect's online retail site.
Combined with iMusic and the ARTISTdirect network's other
channels, UBL competes with Internet portals such as AOL.com,
Excite, Lycos and Yahoo!, all of which offer search, news and
commerce features in their respective music channels.
ARTISTdirect counts among its competitors online music
companies such as Launch.com, MP3.com, MTV.com and Tunes.com,
and online retailers Amazon.com and CDnow.
In order to stay competitive in the rapidly growing online
music market, ARTISTdirect intends to use its IPO proceeds to
pursue additional revenue streams, to supplement its ecommerce,
online advertising and sponsorship initiatives.
For the year ended December 31, 1998, ARTISTdirect reported net
revenue of $4.58 million, compared to $1.89 million for the
previous year. The company's net loss for fiscal 1998 was $6.32
million, compared to $460,000 the previous fiscal year.
The company has already made efforts to expand its off-line
visibility, signing as a sponsor for the six week Family Values
Tour (which features Limp Bizkit, DMX, Filter and the Crystal
Method), and organizing the ARTISTdirect Online Music Awards,
which will be held October 7 in Los Angeles [see 8.25.99
ARTISTdirect, Sega Sponsoring Korn-Less Family Values Tour].
Both MP3.com and Launch.com have also entered the concert
sponsorship business, putting support behind Alanis Morissette
and Tori Amos, and a series of college tours, respectively.
_______________________________________________________
in MARKETPLACE
-> Musicmaker.com in $20M Retail, Equity Deal with America Online
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5878
Online music retailer musicmaker.com, Inc. will pay America
Online, Inc. $18 million over the next three years to sell
custom CD compilations and downloadable music through AOL's
online and Internet channels. AOL will take a $2 million equity
stake in the Internet music operation.
Terms of the agreement let musicmaker.com market music to
members of AOL's online service and visitors to AOL.com,
Netscape Netcenter and AOL's Internet music service,
Spinner.com, and users of Winamp MP3 software and AOL's ICQ
online communication network.
The online music retailer will pay AOL $18 million over the
term of the deal; the companies will share profits from music
products sold through AOL brands.
AOL and musicmaker.com will cross-promote their music sales
through reciprocal links, advertising and marketing
initiatives, including holiday promotions.
Musicmaker.com distributes about 200,000 tracks from at least
100 record labels. The songs are available on "mix" CDs shipped
to consumers after they've compiled them at the site. Nearly
100,000 musicmaker tracks are available as downloadable files
consumers may purchase in multiple formats including Liquid
Audio, Microsoft's Windows Media Audio or a proprietary secure
MP3 format.
For AOL, the deal is a logical step in its campaign to become a
leader in the online music market.
In June, AOL acquired Internet music service Spinner.com, along
with Nullsoft, developer of Winamp MP3 software and the
SHOUTcast streaming audio Internet broadcast network, for a
combined $400 million [see 6.01.99 AOL Acquires Spinner.com,
Developer of Winamp and SHOUTcast].
AOL is developing those services to keep them as stand-along
entities.
"We want to make online music as popular as email," said Ted
Leonsis, president of AOL Interactive Properties.
The online service giant's push into the Internet music arena
faces competition from portal companies Lycos and Yahoo!
Last month, Yahoo! launched a multimedia site offering
webcasts, downloadable music, ecommerce, on-demand music videos
and music remixing services via the Beatnik Player [see 8.3.99
Yahoo! Adds Ecommerce, Publishing to New Digital Site].
Lycos in August acquired the developer of the Sonique MP3
software player; it has also launched Lycos Radio and aligned
with online music directory Listen.com to direct music
consumers to legal downloadable music [see related items].
Musicmaker.com licenses much of its music from EMI, after the
Big Five company took an equity stake in the company and agreed
to make available 500,000 songs to the online music retailer
[see 6.10.99 EMI Takes Stake in musicmaker.com; Licenses Music
Catalog].
Musicmaker.com also offers music from Fantasy, Jive, Platinum,
TVT and Zomba. TVT and Zomba both hold equity stakes in the
company, as part of exclusive licensing agreements [see 8.30.99
BMG-Affiliated Indie Takes Stake in musicmaker.com and 9.08.99
TVT Records in Licensing, Equity Deal with musicmaker.com].
_______________________________________
in MARKETPLACE
-> Navarre Enters Digital Music Age
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5883
Several independent labels have signed on as charter members of
a digital delivery initiative spearheaded by music distribution
company Navarre Corp..
Navarre plans to make available to traditional and online
retail clients downloadable music from American Gramaphone,
Dreamcatcher, Three Roads, Jacket Records, FreeFalls
Entertainment, Point Group and Page Music Group.
According to Jim Chiado, vice president and general manager of
Navarre's Independent Music Division, the majority of Navarre's
affiliated labels will likely join the company's digital
distribution effort by the end of this year.
"All of our future label agreements will contractually include
the digital distribution rights," Chiado said.
Navarre provides fulfillment services to both brick-and-mortar
retail stores and ecommerce music retail sites, and operates a
business-to-business site at Navarre.com. The company's
business groups distribute U.S and Canadian independent label
and major label music and DVD home video to Internet retail
outlets. The company also operates its own online retail site,
CDPoint, and NetRadio.com, an Internet-delivered network of 120
audio channels. Navarre owns a majority stake of NetRadio.
Navarre's announcement to add digital music distribution to its
services comes one month after the company received investment
from Fletcher International Ltd. [see 8.23.99 Navarre Receives
$8.5M from Institutional Investor]. At that time, Navarre CEO
Eric Paulson said the company would use the capital to expand
both traditional and digital distribution businesses.
Music distribution companies Handleman Company and Valley Media
also have digital music delivery strategies.
Valley this week signed an agreement with digital music
distributor amplified.com that lets Valley offer amplified's
downloadable music and custom CD compilation services to
traditional and online music retailers [see 9.21.99 Valley,
amplified.com Seal Digital Deal].
Handelman, whose biggest clients are Ames, Bradlees, Kmart and
Wal-Mart, maintains an equity stake in music technology company
Intouch Group, which has developed an in-store retail kiosk
system.
In late August, NetRadio added nearly 700,000 shares to a
planned initial public stock offering. The IPO could raise as
much as $52 million for the Internet music service [see 8.30.99
NetRadio Boosts IPO Offering]. The offering is scheduled to hit
the Nasdaq Market during the week of October 11.
After the IPO, Navarre will maintain a 47.5% stake in NetRadio,
according to NetRadio's registration documents filed with the
Securities and Exchange Commission.
_______________________________________________________
in INDUSTRY
-> RealNetworks Deal Points CheckOut.com in Digital Direction
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5884
Even though the online retailer has yet to offer downloadable
music through its web site, following an agreement with
RealNetworks, CheckOut.com will be the most prominent music
vendor available through new versions of Real's RealJukebox
music downloading software.
The agreement makes CheckOut.com the premiere music retailer on
both RealJukebox and RealJukebox Plus, software that lets users
make, manage, download and play digital music on PCs. Specific
terms of the agreement were not released.
CheckOut.com has not established when it will add downloadable
music sales to its operation, public relations manager Ann
Garrett said.
CheckOut.com is pursuing content and distribution partnerships
with other companies that offer jukebox-type software
applications, as well as with record labels, Internet portals
and movie studios, according to Garrett.
RealNetworks claims more than ten million unique users have
downloaded the software since it was released in May.
Richard Wolpert, partner in charge of Internet and technology
for The Yucaipa Companies, which operates CheckOut.com, called
the company's alliance with RealNetworks "the first step in
implementing our digital music strategy."
Launched in May, CheckOut.com also sells home video titles and
games [see 5.21.99 Ex-Disney Execs Plan 'Smart'
Shopping/Entertainment Sites]. The venture was developed by
former Walt Disney Co. president Michael Ovitz and former
Disney Online president Richard Wolpert.
The retailer has a co-marketing relationship with Ralphs
Grocery Company that calls for the grocery chain to include in
its sale circulars an incentive offer worth $10 in free
groceries for wired shoppers who access CheckOut.com from the
Ralphs web site, and place an order [see 8.04.99 Yucaipa Using
Grocery Incentives to Market Music, Video].
CheckOut.com also counts among its executives Ron Burkle, whose
Los Angeles-based Yucaipa Companies earlier this year acquired
music, video and game distributor Alliance Entertainment [see
4.29.99 Investment Firm to Acquire Alliance Entertainment].
Ovitz and Wolpert recently acquired a controlling interest in
Scour.Net, an Internet search engine that specializes in
finding audio, video and images on the Web, as well as in MP3
music applications developer GameSpy Industries [see related
items].
RealNetworks today released new versions of RealJukebox and
RealJukebox Plus, adding functionality that lets users
download, play and manage music videos in the RealVideo format.
Web site sputnik7.com is helping promote the release by
offering a content showcase of downloadable videos, for use
with the new software.
The new versions also provide support and integration with
portable digital music devices developed by Samsung Electronics
and Innogear. Innogear develops hardware accessories for
palm-size computer devices.
In offering support for its Yepp player, Samsung joins portable
device manufacturers Creative Labs, Diamond Multimedia, Philips
and RCA.
Real also secured an agreement with 800.com that lets the
consumer electronics seller attract shoppers through
RealJukebox.
_______________________________________________________
in INDUSTRY
-> Proposed Senate Task Force Would Investigate 'Violent' Music
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5876
The music industry is concerned about a U.S. Senate vote
expected today whether to form a task force to investigate
possible violent effects of American culture.
Originally proposed in August as a standing special committee
with the power to subpoena witnesses, the more modest task
force that is expected to be created with today's vote will
disband with the end of the 106th Congress, in October, 2000.
The task force would have an equal number of Republicans and
Democrats.
The August resolution was submitted by Senator Sam Brownback
(R-KS) "to address the cultural crisis facing America" by
considering possible negative effects of music, film, video
games and other popular culture media.
Goals of the committee include collecting data on the impact of
pop culture, and considering links between violent
entertainment and crime, and possible connections between
explicit sexual material and teen sexual activity.
"Music is going to continue to be a focus of Senator
Brownback's ire," said Hilary Rosen, president and CEO of the
Recording Industry Association of America (RIAA). "My hope is
that they will do something he has been unwilling to do before
-- hear from artists, people responsible for creating the work
and accept responsibility for their art, without apology."
Hearings before the task force have not yet been scheduled, but
Rosen said the RIAA would encourage representatives from the
creative community to let themselves be heard.
"Congress needs to see two important things," Rosen said.
"First, artists take ownership and pride in their work -- they
don't need their motives or intentions characterized or
mischaracterized by our political representatives.
"Second, young people are smarter than these senators are
giving credit. When listening to music, they understand
theater, expression and the difference between reality and
fantasy."
Brownback's August resolution was submitted on behalf of
himself and nine others: Republicans Trent Lott (MS), Wayne
Allard (CO), Spencer Abraham (MI), Paul Coverdell (GA), Larry
Craig (ID) and Jeff Sessions (AL), and Democrats Daniel Patrick
Moynihan (NY) Kent Conrad (ND) and Byron Dorgan (ND).
A Brownback spokesman said that, in addition to the
entertainment industry, the special committee will look at
family issues such as out-of-wedlock births and divorce.
There are already formal and informal government-related
initiatives considering negative effects of popular culture.
Federal Trade Commission Chairman Robert Pitofsky said the FTC
would work with the Department of Justice to study marketing
practices of the entertainment industry to determine whether
violent material rated for adults is marketed to children.
President Clinton has asked the Surgeon General to study
effects of popular entertainment on children.
_______________________________________________________
in MIX
-> Aerosmith, Clapton and Queen Among Rock Hall Nominees
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5874
The list of nominees for the Rock and Roll Hall of Fame's class
of 2000 includes several very active contemporary acts,
including Aerosmith, Eric Clapton, Lou Reed, Bonnie Raitt and
James Taylor.
Other artists getting the nod from the Rock and Roll Hall of
Fame Foundation are Black Sabbath, Solomon Burke, Earth, Wind &
Fire, the O'Jays, the Moonglows, Lovin' Spoonful, Queen, Steely
Dan, Ritchie Valens and the Flamingos.
Under rules of nomination, artists are eligible for induction
25 years following the release of their first album.
Clapton was inducted in 1993 as a member of Cream; Reed joined
him in 1996 when the Velvet Underground entered the Hall.
Black Sabbath, Steely Dan, Ritchie Valens, R&B/soul artist
Solomon Burke, and doo-wop groups the Flamingos and Moonglows
were all nominated last year, but did not receive enough votes
for induction.
Inductions are overseen by the Rock and Roll Hall of Fame
Foundation, which mails ballots to at least 1,000 artists,
producers, broadcasters, writers and music industry executives.
The top five nominees receiving at least 50% of the votes are
selected for induction.
S N I P P E T S & L A D D E R
_______________________________________________________
...Information services company Samsung SDS, a subsidiary of
Korean technology conglomerate Samsung Group, has licensed
digital rights management (DRM) technology from InterTrust
Technologies, for use in developing DRM applications for the
digital music, publishing and business information industries.
DRM technologies protect and manage rights and interests in
digital information such as music, videos and text. Under the
agreement, Samsung SDS will gain rights in Korea to operate
financial and usage data centers, process and clear digital
transactions and create and deploy DRM applications as part of
InterTrust's MetaTrust Utility, a collection of partners
offering digital commerce services and applications based on
InterTrust's technology. Earlier this year, Samsung Group
introduced two models of its "yepp" portable audio
player/recorders.
...Eutro Group Holding and Ivy Entertainment.com have formed a
joint venture that will sell rare music and serve as a news
information source on the Internet. The new company, 1st
Archives.com, hopes to become the online clearinghouse for
artists looking to sell previously unreleased live and studio
recordings, photos, videos, films, writings and collectibles
from artists' collections. The site plans to offer discounts to
online retailers, as well as free concert ticket promotions and
other contests.
...The Experience Music Project (EMP), an interactive music
museum scheduled to open next year in Seattle, plans to add to
its award-winning web site an Internet Recording Studio that
incorporates technology from Rocket Network (formerly Res
Rocket). Rocket Network is a web interface that lets audio
enthusiasts collaborate on musical productions worldwide, in
real time. Different musicians contribute brief audio samples
that Rocket Network technology synchronizes and repeatedly
loops, resulting in a collaboration that builds momentum. Other
entities in the Rocket Network include Frank Serafine Studios,
tomandandy, Berklee College of Music, TechRep Marketing and
Sony Music Studios.
...CDbeat has launched "virtual fan clubs" for Bruce
Springsteen, Korn and The Moffats. Fans of those artists may
join the clubs by downloading from www.CDbeat.com free
software. Upon loading a music CD by those artists into their
computer, virtual club members are connected to news,
information, reviews, pictures, message boards and live chats
related to that artist. CDbeat also maintains clubs for artists
such as Mariah Carey, Michael Jackson, Phish and Shania Twain.
...Independent record label Rykodisc has tapped George Howard
as its president. Howard is also head of Slow River Records,
one of Rykodisc's imprints. Rykodisc is a subsidiary of Palm
Pictures, the entertainment company established by Island
Records founder Chris Blackwell.
T O D A Y ' S W E B N O I Z E 9 . 22 . 1999
_______________________________________________________
Apple Computer's recently released 4.0 version of its venerable QuickTime multimedia platform adds the power to stream high-quality audio and video through the Internet.
Unveiling the suite of tools, Apple interim CEO Steve Jobs proudly announced, "From this day forward, content providers, ISPs and network managers will have a choice -- they will not be forced to pay a server tax to RealNetworks for their proprietary server software."
Apple is promoting QuickTime with QuickTime TV, a network of streaming content partners that includes RollingStone.com and VH1, and unabashedly imitates RealNetworks' long-standing practice of promoting its player through compelling content partnerships.
With respect to its place in the evolving music industry, a new WEBNOIZE feature considers QuickTime, which Apple calls "the shining light throughout everything we've been through."
N E W S H E A D L I N E S
_______________________________________________________
-> MTV Linking Programming to Online Downloads
-> Watermarking Company Digimarc Files for $35M IPO
-> Global Music Network Receives $12 Million Investment
S N I P P E T S & L A D D E R
_______________________________________________________
-> Counterpoint Acquires TL Creates
-> Wherehouse, Raygun in Cahoots
-> Cool Site of the Day Relaunches
-> Web Event Guide Relaunches
-> Ladder: CDnow/Columbia House
-> Ladder: Independent Music Group
-> Ladder: SmartDisk
S T A R T N E W S
_______________________________________________________
in MARKETPLACE
-> MTV Linking Programming to Online Downloads
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5863
This weekend, MTV Networks will take a step toward converging
programming on its cable TV and Internet outlets, by offering
at its web site downloadable songs from a broadcast special on
the rebirth of hard rock.
MTV Online will launch Friday what it is calling MTV.com's
biggest downloading events ever, a promotion for "1999: Return
of the Rock," a special scheduled to air in two parts, on
September 25 and 26 on MTV.
Downloadable music company RioPort is providing MTV Online with a branded software application for downloading and playing
music files.
RioPort's involvement in the promotion is the first
high-profile initiative of a July agreement announced with MTV,
for MTV to provide content and promotional support to the
RioPort.com internet portal, in exchange for a share of
revenues from the sales of digitally distributed music, and an
unspecified equity stake in RioPort [see 7.20.99 MTV Online
Taking Stake in RioPort].
RioPort develops the popular Rio MP3 player, which is
manufactured and distributed by parent company Diamond
Multimedia Systems.
As a major music media outlet, MTV's role is "to help music
fans use the Internet to discover new music and connect with
their favorite artists," said Fred Seibert, president of MTV
Networks Online and chairman of MTV Interactive.
In addition to providing music downloads, MTV.com will offer
hard rock fans visiting the web site a chance to read editorial
content about acts featured in the TV special, and host related
online chats.
"Return of the Rock" kicks off at 4:00 p.m. on September 25,
hosted by Metallica drummer Lars Ulrich. The show features
videos by artists including AC/DC, Marilyn Manson, Whitesnake
and Korn.
Officially launched last month, RioPort offers downloadable
music in the MP3 format, as well as news and information about
digital music and relevant hardware and software [see 6.24.99
RioPort Strategy Calls for Integration of Rio, Downloading
Portal]. Among the site's content providers and strategic
partners are amplified.com, Audible, CDuctive, EMusic.com,
Riffage.com, SonicNet, UBL and many others.
The move to more closely link its web site with its TV
programming comes shortly after MTV Networks formed a new unit
consisting of online properties of MTV, VH1 and SonicNet [see
8.30.99 MTV Online Moving Music Properties Into New Unit].
In an effort to expand the multimedia and ecommerce features at
MTV.com and VH1.com, those sites will incorporate technologies
from MTV's Buggles Project, an initiative to feed MTV Online's
web sites personalized audio, video and text content, according
to Nicholas Butterworth, president and CEO of MTVi.
This fall, MTV will debut "webRIOT," an interactive daily TV
game show developed with Internet media company Spiderdance
[see 7.23.99 MTV, HBO Linking Fall Shows to the Web].
As the new "universal music brand" for MTV Online, SonicNet
will benefit most from Buggles technologies, which act as "the
key engine" driving SonicNet, according to Butterworth.
In coming months, SonicNet will add more personalization
features and boost the variety of genres covered at its site,
seeking to become "as valuable to opera fans as rap fans,"
Butterworth said.
MTVi and the other units of MTV Networks, including VH1, MTV2,
Nickelodeon, TNN and CMT, will soon become part of the newly
merged operations of parent company Viacom, Inc. and CBS,
following completion of a multi-billion stock swap [see 9.07.99
Viacom and CBS in $80 Billion Merger].
_______________________________________________________
in FINANCE
-> Watermarking Company Digimarc Files for $35M IPO
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5868
Digimarc Corp., a provider of watermark technology for digital
media, hopes to raise $35 million in an initial public stock
offering. The company intends to use IPO proceeds to expand its
product development, sales and marketing efforts, according to
a registration statement filed with the Securities and Exchange
Commission (SEC).
The Lake Oswego, Oregon-based company has not set a price range
for shares in the company, nor determined the number of shares
to be made public. Typically companies debut on the stock
market six to eight weeks from filing with the SEC, meaning
Digimarc stock could begin trading on the Nasdaq Market in late
October, or early November.
The company's underwriters are BancBoston Robertson Stephens,
Hambrecht & Quist and US Bancorp Piper Jaffray.
Watermark technology lets a content owner embed information
directly into digital music, video, still images and documents.
Optimally, watermarks are invisible, in no way compromise the
quality of the original content, and can not be tampered with,
without damaging the content. Digimarc describes its watermarks
as "persistent and imperceptible."
Information commonly embedded in digital content includes
copyright identification, copy control, licensing, tracking,
ecommerce and enhanced marketing data. Such data stays with a
watermarked file as it travels over the Internet or other
digital networks.
Watermark technology from Cambridge, Massachusetts-based ARIS Technologies has been selected by the Secure Digital Music
Initiative (SDMI) to provide the security system for portable
digital audio devices, and for the DVD-Audio music format;
Digimarc is likely to place its emphasis on other content, such
as digital photographs [see 8.09.99 SDMI, 4C Select ARIS as
Watermark Solution for Downloadable Music, DVD-Audio].
Digimarc sources would not comment on how the company's
watermarking technology might be suited to the music industry.
Last week, Digimarc received a $1.5 million investment from
Hewlett-Packard Co., a leading global provider of computing and
imaging solutions and services to businesses and consumers [see
9.14.99 Hewlett-Packard Invests in Watermark Company Digimarc].
The company intends to use HP's investment to develop new
advances in its technology for digital image applications,
according to Digimarc. Along with Macrovision, Digimarc created
a digital copy protection system that embeds play/record
control information in video streams.
Macrovision maintains an 11.6% equity stake in Digimarc. Other
company investors include Reuters Ltd., AVI Capital, Adobe
Ventures, Justsystems and Softbank Ventures.
For the year ended December 31, 1998, Digimarc reported a net
loss of $3.44 million, compared to a figure of $3.98 million
for the previous fiscal year. The company's total 1998 revenue
was $984,000, compared to $186,000 for fiscal 1997.
In addition to its watermarking technologies, Digimarc is
developing connected-media applications designed to facilitate
marketing and commerce via DVD, digital cable or satellite
transmission and over the Internet.
_______________________________________________________
in FINANCE
-> Global Music Network Receives $12 Million Investment
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5862
Global Music Network, Inc. (GMN), operator of an Internet
portal that targets fans of classical music, opera and jazz,
has received a $12 million private investment the company hopes
to use to develop new content, and expand its online commerce.
The financing was led by C.E. Unterberg, Towbin, a New York-
and San Francisco-based investment bank that has managed 100
public and private offerings in the past decade, raising more
than $7 billion. The company maintains investments in
Beyond.com, CD Radio, EchoStar, Loral, Zoran and dozens of
other companies.
The names of the other investors were not disclosed.
GMN produces exclusive live webcast performances for its web
site, and makes available streaming video interviews, lectures
and recitals. The company intends to use a portion of the new
funding to develop and acquire new content for the site.
The financing will also let GMN expand commerce activities at
its site, and step up marketing efforts, according to the
company.
GMN.com's programming is distributed through a specialized
channel in RealNetworks' RealPlayer G2, and featured in
RealGuide, an online directory of streaming media on the Web.
S N I P P E T S & L A D D E R
_______________________________________________________
...Counterpoint Systems, a London-based outfit that designs
software applications to help music companies manage royalties
and publishing rights, has acquired TL Creates, a Stockton,
California-based software developer. Counterpoint's flagship
Windows-based products are Music Maestro and Record Maestro.
The company has provided solutions to clients such as BMG
Entertainment, EMI, MCA, Sony, Virgin and Warner Chappell Music
Publishing. TL Creates develops software that enables clients
in the entertainment, sports and publishing industries to
address their royalty tracking requirements. Terms of the deal
were not released.
...Music retail chain Wherehouse Music has formed a content
development and promotional partnership with Raygun Publishing,
publisher of Raygun and Bikini magazines. Raygun will provide
Wherehousemusic.com with editorial content, including music
news and feature stories, celebrity chats and album reviews, in
exchange for promotion of the publisher's magazines in all of
Wherehouse's 600 retail stores.
...Cool Site of the Day (www.coolsiteoftheday.com), the
self-appointed arbiter of web site hipness, has relaunched its
site, and is soliciting advice from visitors about the good,
the bad and the ugly of its new look. The site's music zone now
features regularly rotating "audio streams of the week," a
featured artist of the week and more contests and links. Cool
Site pledges that the music area will be "getting more
facelifts than Cher" on a regular basis.
...At Point Technologies has redesigned and relaunched its
online guide to web events, Live@ (Live-At.com), to highlight
more features and events, and new features designed to make
finding information about web events faster and easier. The
site prominently features many music events, including
happenings at House of Blues, Imagine Radio, MTV Europe and
Rolling Stone Network. Live@'s new services include an expanded
schedule of online chats, a daily emailed new edition and
direct access to content from Pseudo Networks, the Health
Network and LiveOnTheNet.
...Scott Flanders has been named chairman and CEO of the new
public company that will be created out of the proposed merger
of online music retailer CDnow and Columbia House, the
club-based marketer of music and videos that is jointly owned
by Sony Corp. and Time Warner. Prior to the completion of the
merger, he will serve as the Columbia House board
representative responsible for overseeing preparations for the
merger. Flanders was most recently chairman and CEO of
Telstreet.com, an online retailer of wireless products and
services.
...David Sifford has been named senior vice president of
Independent Music Group, a company with holdings in the music,
Internet and broadcast industries. Previously executive vice
president of Tribune Entertainment, Sifford has also been named
to IMG's board of directors. IMG is developing a satellite TV
music video channel, the Independent Music Channel, which will
leverage the company's web sites (www.IndependentMusicChanl.com
and www.IndependentMusicNet.com). The company also operates
Emerald City Records.
...SmartDisk, which develops memory storage cards for use in
portable music players and other digital devices, has named
Anthony Ibarguen and Joseph Tucci to its board of directors.
Ibarguen is president and COO of Tech Data Corp.; Tucci is
deputy CEO and a management board member of Getronics.
T O D A Y ' S W E B N O I Z E 9 . 21 . 1999
_______________________________________________________
Over the last year, labels, artists and others have increased their use of the Web to promote and sell products. Still, the pace of change at the upper levels of the music industry has been slow, particularly compared to the rate at which consumers and other businesses have taken to the Internet and other new media.
This slow adoption is most apparent in industry infrastructure. Major labels insist on segregating Internet-related activities from the rest of their business, rather than reflecting real world integration of the 'net. It proves they're missing the point.
Consider the sage advice of Intel chairman Andy Grove, who spoke today to a meeting of the Confederation of British Industry:
"Whenever there is a technology that [offers] a competitive advantage to everybody else, that technology brings about a fundamental change to the business climate."
Under such circumstances, said Grove, "Companies at that point either adapt to the new construct and move on to bigger heights, better future... or miss that moment and go on to a decline."
N E W S H E A D L I N E S
_______________________________________________________
-> Ticketmaster Online-CitySearch Closes MSN Sidewalk Deal
-> Valley, amplified.com Seal Digital Deal
-> Beatnik Secures $11 Million in Venture Funding
-> Insound Launching Indie Video Channel
-> Ebay Proposes Policy on CD-R Sales
S N I P P E T S & L A D D E R
_______________________________________________________
-> CountryCool.com Receives Funding
-> eUniverse Completes BigNetwork Buy
-> SSEYO Releases Online Mixers
-> Ladder: Trans World Entertainment
-> Ladder: Reciprocal
S T A R T N E W S
_______________________________________________________
in INDUSTRY
-> Ticketmaster Online-CitySearch Closes MSN Sidewalk Deal
To access links and related news:
http://news.webnoize.com/item.rs?ID=5857
Ticketmaster Online-CitySearch (TMCS) has completed a $420
million acquisition of the entertainment city guide portion of
MSN Sidewalk from Microsoft. TMCS already maintained a network
of city guides; the new deal eliminates one of its highest
profile competitors and more than doubles the number of cities
its network covers, worldwide.
Terms of the stock deal require TMCS to issue Microsoft
approximately $240 million in common stock, plus 4.5 million
warrants to acquire additional shares. Three million of the
warrants have an initial exercise price of $30 per share, while
the balance have a price of $60 per share.
The initial part of the deal gives Microsoft a 9% stake in
TMCS, which could rise as high as 13% if Microsoft exercises
warrant options. A 13% stake would make Microsoft the second
largest external shareholder of TMCS.
Presently, the CitySearch web site offers music, arts,
shopping, restaurant and movie guide information for about
three dozen cities in the U.S. and abroad, as well as event
ticket sales provided by Ticketmaster Online. Once it adds the
MSN Sidewalk sites to its network, TMCS will provide services
to 77 cities around the world.
TMCS competes mainly with America Online's Digital City
service, which provides similar entertainment, news and
commerce features to more than 60 cities. The Digital City
Network is available on the local channels of America Online
and CompuServe, as well as at AOL.com, DigitalCity.com,
Netscape's NetCenter and MCI WorldCom Internet.
As part of the MSN deal, TMCS will also develop new
entertainment content for both the Microsoft Network (MSN) and
Microsoft-owned WebTV Network. Those properties will also add
links to ticketmaster.com.
The MSN Sidewalk acquisition is part of a broad expansion
strategy undertaken by TMCS since the company raised $98
million in its initial public stock offering last year [see
12.04.98 Ticketmaster Online-CitySearch Raises $98M in IPO].
This year, TMCS has acquired companies and services that let
the online company expand into businesses such as online
auctions, classified ads and dating services.
_______________________________________________________
in INDUSTRY
-> Valley, amplified.com Seal Digital Deal
To access links and related news:
http://news.webnoize.com/item.rs?ID=5858
Valley Media, Inc., a distributor of music and video products
to traditional and online retailers, has officially entered
into an agreement to take an equity stake in digital music
distribution outfit amplified.com. The companies plan to work
closely to deliver new digital and hard-copy products to music
retailers.
Announced in June, the deal calls for Valley to take an
unspecified equity stake in amplified.com; for amplified.com to
build a custom CD manufacturing facility within Valley's
distribution center in Woodland, California; and for the
partners to offer downloadable music and custom CD compilation
services to both traditional and online music retailers [see
6.24.99 Valley In Digital, Financial Deals With amplified.com].
The agreement could help Valley move forward into the "blended
age in which physical and digital products exist side by side,"
said Rob Cain, Valley Media president and CEO.
The single largest distributor of CDs, cassettes and home
videos in the U.S., Valley supplies products from all the major
record labels and movie studios, and from thousands of
independent record labels and film outfits. Among its clients
are brick-and-mortar retailers Best Buy, Sears and Wherehouse
Entertainment, and Internet retailers Amazon.com, CDnow and CD
Universe.
In March, the company raised $56 million through an initial
public stock offering designed to raise capital and repay debt,
among other measures [see 3.26.99 Valley Media Launches IPO].
By integrating services with Valley's ordering system, the pact
gives amplified.com an opportunity to significantly expand
retail partnerships, Wayne Parker, president and founder of
amplified.com, said in June.
Launched last September as a consumer- and business-oriented
service, amplified.com now functions strictly as a
business-to-business provider of customized digital downloading
and CD compilations. The company has licensed upward of 100,000 songs, with approximately 7,500 available for purchase. Among the company's online clients are broadcast.com, National Record Mart, Tower Records, Trans World Entertainment and Wherehouse Entertainment.
After receiving venture capital from Constellation Ventures and
Psilos Group earlier this year, amplified.com expanded
infrastructure, staff, and services offered to its retail and
record label customers [see 6.07.99 Amplified.com Attracts
$4.5M Financing].
Earlier this month, Trans World began using back-end digital
services from amplified.com to lets consumers at its TWEC.com
retail web site buy downloadable music and hard-copy products
using the same Internet shopping cart [see 9.14.99 Leading
Retailers Continue Online Expansion].
_______________________________________________________
in FINANCE
-> Beatnik Secures $11 Million in Venture Funding
To access links and related news:
http://news.webnoize.com/item.rs?ID=5859
Web music technology company Beatnik, Inc. has secured $11
million in new financing from a group of investment firms,
including the Mayfield Fund, Entertainment Media Ventures and
the Zomba Group.
Beatnik develops a digital audio platform for Interactive sound
and music. Its technology is used by MTV, Sun Microsystems,
WebTV, DavidBowie.com and even Altoids mints, to provide
soundtrack music for web sites, as well as interactive music
features.
The Beatnik Player uses a proprietary format for music that
decodes and then loops secure, high quality, multi-track music
in file sizes small enough not to require streaming. Beatnik
web authoring tools ship with products from Intel, Macromedia
and Netscape.
Beatnik was incorporated in 1996, initially as Headspace, Inc.,
by a team of software developers and '80s hitmaker and music
technologist Thomas Dolby Robertson ("She Blinded Me With
Science").
The Zomba Group includes Jive, the pop label distributed by
Bertelsmann AG's BMG Entertainment whose roster includes the
Backstreet Boys, Britney Spears and R. Kelly. Albums by Spears
and the Backstreet Boys have stayed among the top five
positions of Billboard's album sales chart for several months,
and are the two biggest selling albums in the U.S. this year.
Zomba has an equity stake in digital music distributor
musicmaker.com, as part of a five-year licensing agreement that
will make music by Zomba artists available through musicmaker's
custom CD service [see 8.30.99 BMG-Affiliated Indie Takes Stake
In musicmaker.com].
In March, Zomba Music Publishing and Beatnik announced a
strategic partnership and equity investment that let Beatnik
promote and license Zomba's production music library for use on
the Web.
The Mayfield Fund is a capital fund with more than $1 billion
under management. One of its general partners is Michael
Levinthal, a board member of downloadable music company
Riffage.com. Since it was founded in 1969, Mayfield has
invested in about 340 companies, taking approximately 85
public.
Entertainment Media Ventures is a Los Angeles-based venture
capital firm formed in May by Sandy Climan, a former executive
vice president at Universal Studios and member of the senior
management team at Creative Artists Agency.
_______________________________________________________
in MARKETPLACE
-> Insound Launching Indie Video Channel
To access links and related news:
http://news.webnoize.com/item.rs?ID=5852
Internet indie rock community and commerce company Insound will
today launch an online video gallery it hopes will give
independent music artists an alternative to MTV, VH1 and online
music video outlets.
The new Insound gallery offers 80 videos from artists like
Stereolab, Belle & Sebastian and Dub Narcotic Sound System,
unlikely to get airplay on MTV, VH1 or through online outlets
Streamland, Launch.com, Tunes.com and Vidnet, according to Matt
Wishnow, co-founder and marketing director for Insound.
To date, about 20 indie labels have agreed to provide music
videos to Insound, on a non-exclusive basis, including Beggars
Banquet, K Records, Matador Records, Merge Records, Thrill
Jockey, Touch and Go and Sub Pop.
Wishnow said the gallery will offer upward of 150 videos within
a week, and twice that by the end of November.
While mainstream music video sites offer hundreds, even
thousands, of music videos, their content consists largely of
material by popular acts such as Britney Spears and Limp
Bizkit.
In stark contrast, Wishnow said Insound will release music
documentary footage shot on tour by filmmaker/ex-Sleepyhead
bassist Mike Galinksy, who is working with Insound to produce
proprietary video interviews.
Other planned attractions include underground video and
animation clips, and even indie film content, similar to that
offered at web sites AtomFilms, The Bit Screen, D Film,
MTV.com, Sightsound.com and WireBreak.
Because streamed video content at the site features links to
artist information, album reviews and Insound's commerce area,
the new gallery functions as a primary marketing tool for
artists and labels, whose CDs and LPs are available for sale at
the site, Wishnow said.
"The videos don't just serve pure content function at [our
site]," Wishnow said. "Because we work closely with the labels
to sell their products," the new video gallery is a promising
promotional tool.
Insound offers 250,000 music titles from indie artists,
including CDs and LPs, and content from numerous independent
'zine publishers, such as Kickstand, Magnet, Pitchfork, Pop
Culture Press and Rocket Fuel.
In a recent Webnoize Perspectives column, Wishnow said that by
using the Web as a distribution outlet, indie artists and
labels can gain "their first real opportunity to match the
market reach of major music companies" [see 9.13.99
Perspectives >> Choose Non-Exclusivity: Message to the Indie
Music Community].
In addition to editorial content, Insound offers downloadable
MP3 music, Internet radio services and live online chat events.
Another web site offering some of the same services as Insound,
catering to fans of independent pop, rock, rap and R&B, is
Noisebox.com.
In June, Noisebox.com signed a deal with music production house
/ cable TV outlet JBTV to add thousands of music videos,
interviews and live performances to the Noisebox.com web site,
and syndicating that content to other web sites [see 6.14.99
Noisebox.com to Add Music Videos, Interviews].
At that time, Noisebox.com Founder and Chief Propellerhead
David Touve said the partners' strategy is to "provide content
for tons of different web sites," because they know that "these
videos are more valuable for bands if they're everywhere."
Launched in March, Insound was the exclusive online music
retailer for the 1999 Digital Club Festival, held in New York,
July 20-23 [see 4.12.99 Insound Catering to Chat-Happy,
Vinyl-Loving, Community-Minded Indie Fans]. The festival
featured more than 350 bands performing in New York clubs, and
having their shows webcast to the world.
_______________________________________________________
in MARKETPLACE
-> Ebay Proposes Policy on CD-R Sales
To access links and related news:
http://news.webnoize.com/item.rs?ID=5861
Web auction site eBay, arguably the most popular of its kind on
the Internet, has proposed new policies toward auctions of CD-R
(recordable compact discs), "backup" software and 35mm and 70mm
movie prints. The new policies prohibit sales of
copyright-protected content by anyone other than the copyright
owner.
As of October 17, "as a matter of eBay policy, music on CD-R
(including CD-RW) may not be listed on eBay, unless the seller
is the copyright owner and states this in the item
description," according to eBay.
One example of a copyright owner lawfully selling CD-R music on
eBay would be an unsigned artist who self-merchandises an album
of songs on CD-R, and uses eBay to market the disc. Otherwise,
offering self-produced compilations, bootleg or pirate titles
is banned, punishable by law.
"We've been contacted by government agencies investigating
piracy on the Internet, copyright owners, as well as concerned
users about the sale of these items," read a statement emailed
this past weekend to regular eBay customers.
The statement said the new policies were written following
months of internal debate and discussion.
"Some users will be disappointed by this decision, and we're
not happy about having to make it either," the email said.
While the First Sale doctrine of copyright law allows
individuals certain rights to re-sell copyright protected
content, First Sale does not cover media such as CD-R or CD-RW,
which, by design, carry digital copies of content.
EBay has scheduled an online question and answer session to
discuss the proposed policies with its users for Wednesday,
September 22, from 1:00 p.m. to 2:00 p.m. ET.
Millions of consumers use eBay every day to buy and sell
commercial products, second-hand goods and collectibles. The
site is popular enough that IDG Books has published "eBay For
Dummies," an installment of its successful "how-to" book
series, which includes several titles covering computer,
Internet and software skills.
S N I P P E T S & L A D D E R
_______________________________________________________
...In its initial round of investment, Internet music community
company CountryCool.com has received unspecified amounts from
Gaylord Entertainment's GETdigitalmedia, Next Generatation Fund
and individual investors. Gaylord's investment, announced last
Friday, provides the entertainment conglomerate with access to
country music fans as it moves forward with its Internet
strategy. Next Generation's policy is to "invest only in
companies that produce revenues from products and services
whose success will be enhanced by additional capital,"
according to a CountryCool.com press release. CountryCool.com
features music news, interviews, album reviews, a streaming
radio show and sales of music and related merchandise. The site
is the exclusive webcast producer for the CMA Awards, being
held September 22.
...Entertainment and ecommerce network eUniverse, which
provides interactive games, tournaments, news and commerce
through its Internet sites, has completed its acquisition of
Java-based game vendor BigNetwork. BigNetwork's multi-player
games include spades, backgammon, checkers and chess, and reach
almost 20% of the U.S. Internet market. Among the sites in the
eUniverse network is music retailer CD Universe.
...SSEYO has launched three online music mixers called
FreeMixers, which allow users to create pieces of music and
animation. Energized by the Koan Internet audio engine, there
are currently three types of FreeMixer: an MP3 mixer that
builds music from small MP3 samples; a General MIDI mixer that
creates similar but faster mixes through using a computer's
MIDI soundcard; and an XG MIDI mixer delivers extra powerful
MIDI mixes through powerful XG sound-shaping commands. Using
the free Koan Plug-in, the mixes created can be recorded for
free to MIDI, audio or the generative Koan file format.
FreeMixers can be used free on the SSEYO web site, or users can
put them on their own web sites, again for free.
...Music retail chain operator Trans World Entertainment has
appointed Michael Madden as president and chief operating
officer. Most recently executive vice president of Toys "R" Us,
Madden will be responsible for general management of Trans
World's day-to-day operations. The largest music retailer in
the U.S., Trans World operates the Camelot Music, Coconuts
Music and Movies, F.Y.E., Planet Music, Record Town, Saturday
Matinee, Spec's, Strawberries Music and The Wall retail chains.
...Digital rights management company Reciprocal has named Ghada
Hammouda as its chief marketing officer. Hammouda was formerly
senior vice president, worldwide strategic planning at Ogilvy &
Mather. Her role is to lead corporate and strategic marketing
functions for the company, as well as for Reciprocal Music and
Reciprocal Publishing.
T O D A Y ' S W E B N O I Z E 9 . 20 . 1999
_______________________________________________________
MP3.com's editors have on several occasions posted to their web site
correspondences and memos from parties who may have considered the
material confidential, and potentially embarrassing. Now, in effect
turning that spotlight inward, the company has pledged to issue
regular "warts and all" report of its business activities.
The company's first report of its "key metrics" -- figures that
include CD sales figures and web site traffic -- show increases
across the board from July to August. The revenue-related figures
for August, meaning number of CDs sold, is hardly overwhelming
(15,600 discs sold on behalf of 26,700 artists), but the increase
demonstrates growth in the right direction for MP3.com.
MP3.com's willingness to operate under scrutiny, opening its ledgers
to skeptics, investors and consumers interested in tracking what
could be a bumpy ride into profitability, is refreshing. Confident
that its open policy won't impinge on its ability to compete, MP3.com
is also angling to maintain its role as a barometer for the MP3
movement.
N E W S H E A D L I N E S
_______________________________________________________
-> Digital Entertainment Network Files for $75 Million IPO
-> Gaylord Pushing Country Music On the Net
S N I P P E T S & L A D D E R
_______________________________________________________
-> Mjuice Catering to Hip-Hop Fans
-> Launch Sponsoring Concert Series
-> iPIN Attracts Digital Music Clients
-> Ynot.com Launches Multimedia Music Promotions
-> Philips, Tunes.com Holding Millennium Contest
-> Acses.com Changes Name
-> Ladder: Interactive Radio Corp.
-> Ladder: Cyveillance
S T A R T N E W S
_______________________________________________________
in FINANCE
-> Digital Entertainment Network Files for $75 Million IPO
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5846
Digital Entertainment Network, Inc. (DEN), a provider of
TV-style music and entertainment content on the Internet, has
filed for a $75 million initial public stock offering, in an
effort to expand all facets of its business, which include
production and a record label group.
In a registration statement filed with the Securities and
Exchange Commission (SEC), DEN said it plans to offer an
estimated $75 million worth of shares. The company has not yet
determined the number of shares to be offered, nor the offering
price. Lead underwriter for the offering is CS First Boston
Corp.
Traditionally, companies debut on the stock market six to eight
weeks from filing with the SEC, meaning DEN's stock could begin
trading on the Nasdaq Market in late October, or early
December.
In addition to developing and producing content and programming
for its web site, DEN intends to use the IPO proceeds to
develop operations of its >en music group (sic), as well as for
brand promotion and web site development, and to build its
network infrastructure, according to the company's SEC filing.
DEN currently offers about a dozen regular programs that
consist of six minutes of linear video content combined with
linked interactive, multimedia content. The programs target
14-24 year-olds, and include music-oriented "Fear of a Punk
Planet," a college-focused comedy series called "Frat Ratz," an
extreme sports show entitled "Aggronation," and urban drama
"Tales from the Eastside."
DEN said it is developing "dozens" of pilot programs that
include shows devoted to electronica, independent film and
travel.
In June, the company received $26 million in investments from
corporate and institutional parties including Cassandra Chase
Entertainment Partners, Chase Capital Partners, Dell Computer,
Microsoft and senior executives of Lazard Freres & Co. [see
6.01.99 Digital Entertainment Network Lands $26M; Forms Music
Group]
DEN hopes to generate revenue from program sponsorships,
TV-style commercials, and ecommerce.
For the year ended December 31, 1998, DEN reported a net loss
of $7.09 million, compared to a figure of $222,000 for the
prior fiscal year.
Because music is important to its target audience, DEN recently
launched >en music group in tandem with G.A.S. Entertainment.
Former Capitol Records chairman Gary Gersh and Gold Mountain
Management head John Silva, principals of the newly formed
G.A.S., serve as co-leaders of the new company.
The music group's strategy involves securing artists by
offering contractual terms potentially more generous than
traditional record company contracts. Terms include 50/50
business partnerships, briefer lengthed terms of commitment,
music publishing opportunities, webcast outlets, and
cross-marketing and promotional opportunities with major and
independent record companies and other "major corporations."
DEN's closest competitors include WireBreak and Pseudo
Programs. Earlier this month, WireBreak removed wraps from its
first four online entertainment programs [see 9.13.99 WireBreak
to Launch First Interactive Short Programs]. Founded by former
Paramount Digital Entertainment president David Wertheimer,
WireBreak targets a similar demographic with a regular slate of
ten-minute shows.
Last week Pseudo said it had received investment from Intel
that would let the online entertainment programmer expand
programming and marketing strategies [see 9.16.99 Pseudo to
Expand Programming with Intel Investment].
Other DEN competitors include MTV Online, sputnik7.com,
Tranz-Send Broadcasting Network, Shockwave.com and Warner Bros.
Entertaindom.
_______________________________________________________
in INDUSTRY
-> Gaylord Pushing Country Music On the Net
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5842
Continuing a country-flavored push onto the Internet, Gaylord
Entertainment has acquired a search engine company and taken an
equity stake in an Internet portal and content provider.
Gaylord's recently formed Internet division, GETdigitalmedia,
has acquired Soundmarket.net, a country music search engine
company based in Nashville, and become a minority investor in
CountryCool.com, an Internet portal and original content
provider. Terms of the transactions were not disclosed.
In July, Gaylord intensified its competition with Crosswalk.com
by buying into ecommerce and Internet content operations
focusing on the country music and Christian communities [see
7.28.99 Gaylord Using Christian Sites as Base of Internet
Division].
Established in 1996, CountryCool.com produces daily news, music
reviews and features about country music artists, and offers
chats and sales of country music memorabilia. The site has been
selected by the Country Music Association (CMA) as the official
web event producer for the 33rd Annual CMA Awards, which will
take place September 22.
In addition to traditional search engine features,
Soundmarket.net provides visitors with a customizable Internet
radio service.
Combined, Soundmarket.net and CountryCool.com provide Gaylord
with features to supplement its growing Internet portfolio,
which includes online commerce community Musicforce.com and
Christian content provider Lightsource.com.
In July, Gaylord purchased 51% of Musicforce.com's developer,
GBRJ Music, LLC, for $15 million in cash and unspecified option
agreements regarding additional interests. A portion of that
investment was used by Musicforce.com to acquire 100% of
Lightsource.com from the KMA Companies.
Musicforce.com and Lightsource.com form the base of
GETdigitalmedia, according to Terry London, president and chief
executive officer of Gaylord Entertainment.
"Musicforce.com and Lightsource.com bring immediate Internet
commerce and broadcasting capabilities to our new division, and
we anticipate that the combined operations will generate
revenues of approximately $20 million in the next year," London
said in July, in announcing those acquisitions.
Gaylord also maintains radio and television properties,
including Country Music Television International and Z Music
Television, as well as venues such as the Grand Ole Opry and
other music businesses, including Acuff-Rose Music Publishing
and Opryland Productions.
Gaylord's primary competitor is Crosswalk.com, Inc. (formerly
DIDAX), which operates an Internet portal that features
channels devoted to music, radio, movies, books, finance,
spirituality and education.
Crosswalk.com recently acquired publisher and direct mail
outfit Wilke Associates, parent company of MediaManagement,
which operates the Goshen.net web site and email service
catering to leaders in the Christian community [see 8.02.99
Crosswalk.com Acquires Christian Publishing Company].
S N I P P E T S & L A D D E R
_______________________________________________________
...Downloadable music site Mjuice.com has secured a two-year
distribution agreement with Philadelphia-based hip-hop record
label ANTRA Records, beginning with a promotion distributing
advance tracks from Kurupt's new album, Tha Streetz Iz a Mutha.
The second solo outing from the Dogg Pound member features
guests Dr. Dre, Warren G., Snoop Dogg, KRS-ONE and Organized
Noise. Mjuice has put recent effort into establishing the site
as a cutting edge hip-hop music destination; an alliance with
Sony/Columbia's Loud Records imprint made Mjuice the exclusive
outlet for a downloadable music promotion for Murda Muzik, a
new release from rap act Mobb Deep. Mjuice distributes MP3
files that incorporate a proprietary security system. The site
currently offers about 3,000 songs from 40 music labels,
including tracks from DreamWorks, Bad Boy, Ubiquity,
Alternative Tentacles and Fat Wreck Chords.
...Launch Media will sponsor a series of concert tours,
beginning September 21 with a five-city jaunt by U.K. band
Gomez, which is also being sponsored by HotJobs.com. The
Launch.com Concert Series will be linked to the Web via artist
chats and exclusive music downloads. Launch has also teamed
with college community Internet hub mybytes.com for a ticket
giveaway promotion. "We initiated the concert series
specifically to show our support for emerging artists," said
Ted Mico, vice president of marketing and promotions for
Launch. Details about future concerts in the series have not
been released. Launch joins other online music companies, such
as ARTISTdirect and MP3.com, that have entered into the concert
tour sponsorship business recently.
...Several digital music companies have entered into agreements
to use micro-payment services from web-based commerce
technology company iPIN. Unveiled in August, the iPIN system
frees consumers from using credit cards for online purchases,
instead linking with Internet Service Providers (ISPs) to add
charges for digital content to consumers' monthly ISP bills.
The companies that have contracted to use iPIN's system include
ARTISTdirect (for ARTISTdirect.com and UBL.com), AT&T's a2b
music, BuyMP3.com, CDuctive, EMusic.com, iBEAM Broadcasting,
MCY.com, Mjuice.com and The Orchard. ISPs share with iPIN a
small percentage of each transaction. Content providers and
ISPs entering into agreements with iPIN are provided free
software from the company.
...Ynot.com, a company best known for multimedia greeting
cards, is getting into music promotion, using a multimedia
presentation format it calls SongBYtes to promote independent
music on the Internet. SongBYtes use Macromedia Flash
technology to stream a synchronized multimedia presentation
that combines a short song clip and graphics, and invites fans
to purchase downloadable music or order a CD. According to
Ynot, production costs are low, and delivery requires less
bandwidth than more common Internet video formats. British
art-rock band Marillion is using a SongBYte to promote a new
album; EMusic used it to announce the launch of a new web radio
attraction, Radio They Might Be Giants. Ynot.com is
headquartered in Milpitas, California and has corporate
representation in Japan, France, Germany and Spain.
...Philips Electronics is challenging music fans to come up
with the best New Year's Eve party mixes with its Millennium
Mix Contest. Contestants enter their 10 favorite songs at
www.tunes.com/Philips2000 to win cash and prizes including
Philips audio CD-recorders. The contest runs through November
23, 1999. Entrants can either write in their own songs or
choose from the Tunes.com database of song selections. The
contest winner will be determined by the list that matches the
songs most frequently chosen. Tunes.com will provide music
content and information for the contest micro site, manage the
flow of entries, as well as participate in the selection of
music from the past five decades.
...Acses.com, a comparison shopping service specializing in
scanning web retail sites for prices on CDs, videos, DVDs and
books, has changed its name to DealPilot.com. The new name is
"more suited for the company's international expansion, as well
as for its key market, the U.S.," according to a company press
statement. DealPilot.com uses proprietary technology to track
the lowest prices on products sold over the Internet. When a
visitor to the site chooses to retrieve product prices,
DealPilot.com reports back with a listing of items, sorted by
price, including shipping costs and sales taxes.
...Interactive Radio Corp. (IRC) has made several appointments
to its management team. Stephen Crosby, the founder of
real-time traffic information provider Smart Route Systems, has
been tapped as president and CEO. Mark Moeller, founder and
executive manager of AutoPCWare, will serve as senior
consultant. A.J. Abdallat, co-founder and vice president of
marketing for ViaSpace Technologies (which IRC recently agreed
to acquire), has joined the company as chief marketing officer
and VP of business development. Former U.S. Senator Vance
Hartke, founder and managing director of Washington, D.C., law
firm Hartke & Hartke, has been engaged as consultant and
corporate counsel. IRC is the subsidiary of Omicron
Technologies that is developing a satellite-based, interactive
radio network.
...Cyveillance, a company that provides what it calls
"Intelligent Internet Surveillance" to help companies profit
from, and protect their copyrighted material, trademarks and
images on, the Internet, has named Gilbert Scott, Sr. as vice
president of sales. The founder of marketing management and
sales consulting firm Hurshell Associates, Scott was formerly
president and COO of The Bartech Group. Cyveillance (formerly
Online Monitoring Services) counts among its clients the
American Society of Composers, Authors and Publishers (ASCAP).
T O D A Y ' S W E B N O I Z E 9 . 17 . 1999
_______________________________________________________
Amazon's "New Music Spotlight" apes MP3.com's current business model,
showcasing unestablished acts by giving away downloadable songs,
selling mail-order CDs by those artists and splitting revenue with
the talent.
MP3.com is likely only using the whole set-up to establish its name,
build a clientele and bide time until it can try to cut deals to
distribute music by more popular acts. Amazon is picking up the
model to participate in a trend, and as part of an ongoing practice
of leaving no stone unturned.
We're part of the relatively small segment of music lovers that likes
to dig for new music, giving largely unknown artists a fair shake and
a healthy endorsement, when deserved.
We're less likely to do that at Amazon.com. In May, when CDnow and
N2K officially launched their fused web operations, CDnow President
and CEO Jason Olim may have said it best: "I view [Amazon.com] like
Tower Records views Wal-Mart...It's a department store; they're
always clearly off the ball."
Because music is not at the center of Amazon.com's universe, the
company will have to work hard to create the atmosphere eager music
enthusiasts want when exploring undiscovered artists. Otherwise,
persuading its established customer base to discover new music will
be the most Amazon.com can bank on.
N E W S H E A D L I N E S
_______________________________________________________
-> KnitMedia Secures $1.2M, On Financial Roll
-> Amazon Showcasing Indie Artists
-> Sonic Foundry Financing to Aid New Media Expansion
S N I P P E T S & L A D D E R
_______________________________________________________
-> Dave Matthews Band Selling Live Downloads
-> Lennon/Ono TV Shows at ZineZone
-> Collegemusic.com Launches Webcast Network
-> New Visual Acquiring Astounding.com
-> IndieBiz.com Hits the Web
-> Cakewalk Releasing Two Products
-> Ladder: Custom Revolutions
-> Ladder: MusicNow
-> Ladder: XM Satellite Radio
-> Ladder: Intervu
S T A R T N E W S
_______________________________________________________
in FINANCE
-> KnitMedia Secures $1.2M, On Financial Roll
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5840
New media entertainment provider KnitMedia has secured $1.2
million in private financing that, combined with a recent
investment of $3 million, will let the company expand its wired
empire into Los Angeles and Europe, and further develop its
talent and management rosters.
First Analysis Venture Capital provided the new equity
investment, part of a total round KnitMedia received in August
from New York-based The Argentum Group, which specializes in
funding later-stage growth companies [see 8.05.99 KnitMedia to
Use Funding For Music, Internet Expansion].
First Analysis manages about $500 million in assets, focusing
on both early-stage and emerging-growth ventures.
KnitMedia operates New York's famed Knitting Factory nightclub,
which webcasts every show from its main performing space, and
plans soon to sell through its web site downloadable music
files of live performances recorded at its club [see 5.24.99
KnitMedia to Digitally Distribute Live Performances].
A second Knitting Factory is scheduled to open in Los Angeles
in February 2000, and a third in Berlin, Germany, by May of
next year. All the clubs will be connected by high-speed links,
so that performances may be webcast, according to KnitMedia.
KnitMedia plans to use the new investment to fund the L.A.
club, expand the artist roster of the Knitting Factory Works
record label, and hire executives for its management team.
The investment comes as wired nightclub competition heats up.
House of Blues Entertainment has inaugurated a series of
pay-per-view webcasts likely to grow now that the company has
acquired Universal Concerts and its various live music venues.
SFX Entertainment, the world's largest producer, promoter and
venue operator, is developing a webcast plan of its own, as
well as an online ticket-trading area [see related items].
In addition to its nightclub and record label operations,
KnitMedia owns 50% of the Digital Club Festival (formerly the
Intel New York Music Festival), a webcast extravaganza
historically marketed in tandem with Jupiter Communications'
Plug.In music conference.
Among recent KnitMedia projects is KnitTV, which features live
webcasts from four Knitting Factory stages nightly, as well as
archived performances. KnitTV is one of Apple Computer's newly
launched QuickTime TV channels [see 7.21.99 RollingStone.com,
VH1, Knitting Factory Help Launch Apple's QuickTime TV].
KnitMedia plans to produce a music video program for
Cablevision's broadband Internet service.
_______________________________________________________
in MARKETPLACE
-> Amazon Showcasing Indie Artists
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5835
With the launch of a section of free downloadable music focused
on independent artists, Amazon.com is playing hardball with
online retailers and music companies.
Amazon's New Music Spotlight supplements its existing Free
Digital Downloads section, which since June has featured
promotional content from major label acts such as Sarah
McLachlan, Lyle Lovett, Rufus Wainwright and Randy Newman [see
6.08.99 Amazon Offering Free Music Downloads by Universal, BMG
Artists].
The indie music showcase features free MP3 downloads of songs
from artists and labels that participate in Amazon.com
Advantage, a free program that invites members to sell their
CDs through the popular retail outlet. Songs featured in the
New Music Spotlight are available for purchase on CD at
Amazon.com.
The program is the same as the current business plan employed
by MP3.com, arguably the most popular Internet destination for
downloadable music. While MP3.com's revenue has been modest,
its recent $340 million Wall Street debut suggested many have
faith in its growth potential.
Songs for Amazon's competing section are selected by Amazon.com
editors from among the top-selling Advantage acts, and include
tracks by the San Francisco Girl's Chorus, Christian rapper
Father Stan Fortuna, Latino blues act Randy Garibay and Cats
Don't Sleep, and Celtic electronica from Ninian Hawick.
"The combination of editorial coverage and free MP3 downloads
is a powerful sales propellant," said Jennifer Cast, general
manager of Amazon.com's music store.
In linking its editorial and downloading initiatives,
Amazon.com imitates Tunes.com, which promotes downloadable
music based on selections from editors of Rolling Stone and The
Source magazines [see 5.24.99 Rolling Stone Editors to Pick
Favorite Unsigned Acts].
Although Amazon.com has not initiated downloadable music sales,
that move will come soon, and is likely to have an impact on
fellow retailers such as CDnow, and to a lesser extent, on
Internet music companies such as MP3.com, EMusic.com and IUMA,
which focus exclusively on digital sales and promotion of
independent and unsigned artists.
CDnow recently dipped cybertoes into downloadable music waters,
offering free tracks by the McLachlan, Creed and Paula Cole.
The site is likely expand its digital offerings upon completion
of a merger with Columbia House [see related items].
Although not direct Amazon.com competitors, MP3.com, EMusic.com
and IUMA have raised their online profiles of late, in order to
attract more consumers of independent music.
Earlier this week, EMusic.com paired with performing rights
organization BMI in licensing and ecommerce agreements [see
9.16.99 BMI, EMusic.com in Licensing, Ecommerce Agreements].
EMusic.com sells downloadable music files from an inventory of
25,000 independent label tracks, as both individual songs or
whole albums.
Also this week, IUMA relaunched its site, in an effort to
provide unsigned artists with web site space, downloading
support and access to EMusic.com's label and retail partners
[see 9.15.99 Relaunched IUMA Site Integrated with EMusic.com].
_______________________________________________________
in FINANCE
-> Sonic Foundry Financing to Aid New Media Expansion
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5837
Sonic Foundry, Inc., a developer of media authoring software
for music, multimedia and Internet applications, has completed
a $5 million private financing round that will aid the
company's promotional efforts.
The company has placed notes and warrants with unspecified
institutional investors in an effort to meet near-term sales
and marketing needs, and for working capital and general
corporate purposes, according to Rimas Buinevicius, chairman
and CEO of Sonic Foundry.
The transaction represents the first step in the company's
strategy to assure its movement into the "fast developing
interactive new media arena," Buinevicius said.
In July, Sonic Foundry reported a net loss of $1.3 million for
the quarter ended June 30, compared with net income of $60,044
for the same period of 1998. The company attributed the loss to
costs related to promoting its Audio Anywhere software into the
office superstore market.
Company revenues for its last fiscal quarter were $4.2 million,
double the $2.1 million it generated in the same quarter last
year.
S N I P P E T S & L A D D E R
_______________________________________________________
...BMG label RCA Records and Internet music distribution
specialist Liquid Audio have teamed to release live recordings
of the Dave Matthews Band as secure downloadable files. Four
live songs from the band's September 11 concert in East
Rutherford, New Jersey -- recorded for, but not used in a
forthcoming PBS special -- will be offered to U.S. fans for
preview or purchase, beginning September 29, at
LiquidAudio.com/dmb. Dave Matthews Band and BMG/RCA are
donating all proceeds from sale of the tracks to VH1 Save The
Music, which works to improve music education in U.S. public
schools. PBS will air the special Wednesday, September 29 at
10:30 p.m. ET.
...As part of a promotional partnership with Rhino Records
(Rhino.com), online information community ZineZone.com has made
available on-demand video excerpts from the five days in
February 1972, when John Lennon and Yoko Ono co-hosted the Mike
Douglas Show, the most widely watched daytime talk show of its
time. Rhino Home Video released the TV shows commercially last
year. At ZineZone, fans can access complete transcripts, a
biography, timeline, discography and purchase the full-length
tapes online, individually or as a set. The couple spoke
candidly about their marriage, opposition to the Vietnam War
and equal rights, and welcomed guests Ralph Nader, Jerry Rubin,
Chuck Berry, Black Panther Chairman Bobby Seale and comedian
George Carlin. ZineZone is a majority-owned operating company
of CMGI.
...Collegemusic.com has launched the College Music Club
Network, which will present live and archived streaming
webcasts from music venues around the U.S., including clubs
such as CBGB and Bitter End in New York, The Steamboat in
Austin and The Vanderbilt in Garden City, New York.
Collegemusic.com also offers streams of college radio stations,
artist web pages, online chats and music samples. The site has
paired with technology company CDKnet to create a site that
allows visitors to create customized, multimedia CDs containing
both audio and video tracks. The site is accessible through
both Collegemusic.com and MixFactory.com, the latter of which
is a promotional web site for CDKnet's MixFactory software,
which lets web content providers develop custom mix discs.
...New Visual Entertainment, which specializes in 3D product
development and distribution for special venue theaters, home
video, broadcast and theatrical markets, has entered into an
agreement to merge with Astounding.com, which is developing an
Internet-based broadcast network. Terms of the deal call for
Astounding.com to become a wholly-owned subsidiary of New
Visual, and for the outstanding shares of Astounding.com's
common stock to be converted into 10 million shares of New
Visual's common stock. The pair plans to develop 3D video
content for use in Internet radio broadcasts, and also focus on
delivering movies and videos on demand to Internet users. New
Visual has developed patented technology for the creation and
exhibition of three-dimensional media.
...A new site, IndieBiz.com, was launched this week to provide
musicians and other independent music business people with a
comprehensive resource and online community. The site
emphasizes regional promotions, encouraging bands to saturate a
small- to medium-sized area to protect from spreading their
promotion too thin. "Success in the music business depends a
great deal on personal contacts," said David Hooper, founder of
IndieBiz.com. "We give our clients an opportunity to tap into
this network and use it to their advantage."
...Music software company Cakewalk has unveiled two new updates
of its professional and home recording software. Cakewalk Pro
Audio 9 is a new version of its multitrack recording software
for sound professionals. This upgrade includes features such as
WavePipe technology, AudioX support, MIDI enhancements, guitar
features and MP3 encoding functions. Cakewalk Pro Audio 9 will
ship to retail stores in early October. In addition, the
company is releasing Cakewalk Home Studio 9, which allows users
to hear nearly instantaneous response to mixing commands using
standard multimedia sound cards. The home software ships on
September 27.
...Custom CD compilation company Custom Revolutions has named
Wayne Rosso vice president of corporate communications. The
Stamford, Connecticut-based company operates CustomDisc.com,
and plans to file to go public in the near future. Rosso has
conducted media relations for TCI Music, a2b music,
CityInteractive and the Digital Media Association (DiMA).
...MusicNow Network, which operates the Woodstock.com and
FirstLook.com music web sites, has named J. Scott Dinsdale
executive vice president. Dinsdale previously served as senior
vice president, chief technology officer and chief information
officer for BMG Entertainment.
...XM Satellite Radio has named Anthony Masiello as vice
president of broadcast operations. Formerly VP of technical
operations for CBS Radio Networks, Masiello will oversee the
build-out of XM's multi-studio programming complex. The company
has also tapped George Lynch as its director of original
equipment manufacturer sales. Lynch will also head up XM's
newly opened office in Detroit to support its relationships
with automotive manufacturers, including General Motors. Lynch
comes to XM from Panasonic Automotive Electronics, where he was
responsible for the company's largest OEM account, Toyota.
Beginning next year, XM plans to transmit via satellite up to
100 channels of digital-quality music, news, talk, sports and
children's programming directly to vehicle, home and portable
radios across the country.
...Intervu, a provider of Internet audio and video delivery
solutions, has named Kevin Sagara as its vice president of
mergers and acquisitions and general counsel. Sagara will
oversee the company's mergers, acquisitions and other
significant transactions, as well as its legal affairs. Prior
to joining Intervu, Sagara was chief corporate counsel at
Sempra Energy. Intervu's client base includes House of Blues,
OnRadio.com, RadioWave.com, NBC and CNN.
T O D A Y ' S W E B N O I Z E 9 . 16 . 1999
_______________________________________________________
This year, several traditional music industry conference producers
have incorporated new media-centric programming into their schedules, to capitalize on the endless frenzy surrounding the Internet.
Two music trade titans, SXSW and CMJ, are going head-to-head with
their efforts. SXSW has recast this year's entire NXNW show
(September 30 to October 2, in Portland, Oregon) with a new media
spin. CMJ has tagged onto its annual CMJ Music Marathon Musicfest a day-long agenda, called MusicNet. MusicNet is this Saturday in New
York City.
Webnoize will hold court at both events, lending expertise and
insight while addressing pertinent new media issues. As a panel
sponsor at NXNW, we'll examine new media format wars during "Digital Darwinism," on Thursday, September 30. At CMJ's MusicNet, Webnoize will moderate a discussion of copyrights and fair use on the Internet entitled "Steal This Song."
Those attending this week's meeting of National Association of
Recording Merchandisers in Coronado, California, can learn about the
"State of the Industry," another Webnoize-moderated panel.
Visit the conference sites...
-> North By Northwest
http://www.nxnw.com
-> CMJ MusicNet
http://www.cmj.com/MusicNet/
-> National Association of Recording Merchandisers
http://www.narm.com/events/index.htm
N E W S H E A D L I N E S
_______________________________________________________
-> Pseudo to Expand Programming with Intel Investment
-> BMI, EMusic.com in Licensing, Ecommerce Agreements
-> Virgin Entertainment Readying Download Site
-> Best Buy Revenues, Earnings Up in Second Quarter
S N I P P E T S & L A D D E R
_______________________________________________________
-> Musicmaker.com Doing Townshend Promo
-> HOB.com Launches Tricky Radio
-> Swedish Teen Accused of Internet Piracy Acquitted
-> Liquid Adds 6 to Music Network
-> Cyberradio2000 Going Terrestrial
-> Universal Music Using StarTracker
-> ASCAP Hosts Capitol Hill Event
-> Ladder: InterTrust Technologies
-> Ladder: Liberty Digital
-> Ladder: Global Music One
S T A R T N E W S
_______________________________________________________
in FINANCE
-> Pseudo to Expand Programming with Intel Investment
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5822
Internet music and entertainment provider Pseudo Programs, Inc.
has received an investment from Intel Corp. that will let the
company expand programming and initiate online and offline
marketing campaigns.
Terms of the investment were not disclosed, but sources close
to the deal said Pseudo received approximately $4 million from
Intel. The leading computer processor company joins other
recent Pseudo investors Prospect Street Ventures, Sycamore
Ventures and Tribune Ventures.
Founded in 1994 by Jupiter Communications founder Joshua
Harris, Pseudo produces 50 television-type programs that are
webcast on the Internet on a regular schedule. The shows invite
viewers to take part in chats during the presentation, and are
organized into ten themed channels, including several dedicated
to music: 88HipHop.com, Koolout, Static and Streetsound.
Other programs cover gaming, business and technology, theater,
lifestyles and space exploration.
Pseudo plans to use the funding to expand existing programs,
develop new shows, and launch what it calls an aggressive
online and offline marketing campaign that targets the "young,
urban-oriented, style-setters" it considers its core audience.
The investment "will give our programming team a powerful
ability to further broaden our channel base into other niche
topics," said Larry Lux, chief executive officer of Pseudo.
Among Pseudo's competitors are Digital Entertainment Network
(DEN), a provider of a variety of music, sports, travel and
comedy programs; WireBreak, which earlier this week launched
its first four entertainment shows; and InterneTV, a programmer
offering four regularly scheduled, original shows, along with
music videos, film trailers and other entertainment content.
Last December, Pseudo closed deals that expand its delivery
systems to satellite, broadband cable and telephone
distribution, including syndication of some 60 weekly hours to
broadband entertainment and information service companies
Intertainer and Wavo (formerly WavePhore). The company also has
a programming swap agreement with CNET (video game shows for
business programming), and syndication deals with web portal
Excite and BMG Entertainment's Peeps.com site [see related
items].
_______________________________________________________
in INDUSTRY
-> BMI, EMusic.com in Licensing, Ecommerce Agreements
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5823
Prominent U.S. performing rights organization Broadcast Music,
Inc. (BMI) has forged a licensing and ecommerce agreement with
downloadable music vendor EMusic.com.
While no financial aspects of the deal have been made public,
BMI will issue EMusic.com a blanket music performance license
that covers streamed and downloaded performances.
"Developing the market for commerce and the performance of BMI
music on the web is a top priority for us," said John Shaker,
BMI senior vice president of licensing.
Shaker said the agreement is a comprehensive license covering
performances of music in the BMI repertoire on the EMusic.com
and its other web sites, which include the Internet Underground
Music Archive (IUMA). BMI represents three million musical
works and 200,000 songwriters, composers and publishers.
A spokesman for ASCAP, the world's largest music performing
rights organization, said it has had a blanket license
agreement with EMusic.com since spring. ASCAP has licensed at
least 1,200 web sites.
Such licenses are essential to any web enterprise with
ambitions to develop radio-styled webcast programming. The
Recording Industry Association of America is currently working
with webcasters to establish licensing rates for use of
copyright protected musical recordings.
The BMI/EMusic partnership could drive some new members to BMI,
through IUMA. IUMA houses 5,000 web sites for unsigned artists
that feature multiple pages of streaming songs (MP3 or
RealAudio), lyrics, artist biographies, photos, tour dates,
images and artwork. The site relaunched earlier this week, more
closely integrating its features with Emusic.com [see 9.15.99
Relaunched IUMA Site Integrated with EMusic.com].
In June, ASCAP said it had established a "unique strategic
relationship" with downloadable music site MP3.com, providing
the site with a comprehensive license that allows unlimited
interactive performances on the MP3.com site of over four
million copyrighted works from ASCAP's 85,000 members [see
6.16.99 ASCAP, MP3.com Align].
As a recruitment agent for ASCAP, MP3.com promotes ASCAP
services to songwriters, composers, artist/writers and
publishers represented on the MP3.com site. MP3.com also
handles membership application processing.
As part of terms between BMI and EMusic, BMI will provide
direct links to EMusic from its database of artists, and EMusic
will let site users directly view writer information from BMI's
web site. The two sites will also swap banner advertising.
In a press statement, Richard Conlon, BMI vice president of
marketing and business development, said that in the past year,
BMI has tripled its Internet income, largely through new
professional relationships.
According to BMI, it was the first performing rights
organization to license web sites, and has been distributing
royalties for web performances since January 1998. It first
introduced its Digital Copyright Agreement in 1995. Internet
sites already licensed by BMI include RollingStone.com,
Tunes.com, Spinner.com, Yahoo! Broadcast Services and Ultimate
Band List.
EMusic.com sells downloadable music files from an inventory of
25,000 independent label tracks, as both individual songs or
whole albums. IUMA, widely recognized as the first downloadable
music site on the Internet, launched in 1993.
_______________________________________________________
in MARKETPLACE
-> Virgin Entertainment Readying Download Site
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5824
Virgin Entertainment Group is adding another Internet component
to its business, a web site offering downloadable music and
games, in addition to mail order CDs and other merchandise.
Virgin will also take a 25% stake in a technology partner
involved in the venture.
Working with Wavo Corp. (formerly WavePhore), Virgin is
developing the site, Virgin Jamcast, to broadcast digital music
and game files directly to registrants' PCs using software from
Wavo, effectively eliminating what the partners call the
"incessant waiting" that generally bogs down Internet
downloading.
As part of the JamCast development agreement, Virgin plans to
take a 25% equity stake in JamCast.com, Inc., a newly formed
Wavo subsidiary. In exchange, Virgin will provide $15 million
of in-store promotion for the new web site. Wavo has issued
warrants to Virgin that let Virgin acquire Wavo common shares.
Visitors to the JamCast site, which is slated for commercial
launch later this year, will also be able to purchase CDs and
other entertainment merchandise, likely from Virgin Megastores,
the retail chain operated by Virgin Entertainment, which also
maintains record label, travel, hotel, communications and
personal financial services businesses.
Earlier this year, Virgin Megastores launched its online
operation, which, in addition to music sales, features an
Internet radio station.
In addition to courting consumers, Virgin and Wavo are
soliciting unsigned artists to submit music to JamCast,
promising to deliver digital files directly to members' PCs via
IP multicasting, instead of "some streaming sample that sounds
like it was recorded in a tin can."
IP multicasting facilitates one-to-many Internet data
distribution of multimedia content. Wavo is a member of the IP
Multicast Initiative, a multi-vendor forum working to
accelerate the adoption of IP multicasting.
Introduced earlier this year by Wavo (then WavePhore), and
originally slated for a September 1 launch, JamCast is part of
the company's effort to expand beyond its news and information
programming services such as NewsCast, NewPak, eWatch and
WaveTop into the entertainment realm [see 5.14.99 WavePhore
Developing Entertainment Web Site].
With JamCast, WavePhore enters the rapidly expanding Internet
portal/aggregation market. Since the beginning of the year, the
market has become crowded with new or relaunched sites from
companies such as Tunes.com, RioPort, Warner Bros. Online, UBL,
Yahoo! and Comcast Online [see related news].
Wavo expects the number of Internet Service Providers (ISP)
supporting IP multicast technology to grow. In response, the
company developed an Internet-based content delivery system
that makes use of ISP-supported multicast networks to
complement Wavo's data broadcast service, WaveTop, which sends
content over television broadcasts signals.
WaveTop embeds data streams into unseen portions of broadcast
television signals. Wavo has partnered with PBS National
Datacast to broadcast over the TV signals of 260 PBS member
stations.
_______________________________________________________
in FINANCE
-> Best Buy Revenues, Earnings Up in Second Quarter
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5827
Music and electronics retailer Best Buy Co., Inc. reported a
rise in both net earnings and net revenues for the second
quarter ended August 28, 1999. Earlier this week, the company
formed an Internet subsidiary to foster online sales growth and
pursue new business opportunities [see 9.14.99 Leading
Retailers Continue Online Expansion].
For the quarter, Best Buy realized net earnings of $59 million,
or $.28 per share, compared to a figure of $44.1 million, or
$.21 per share, for the second quarter of fiscal 1999. Best Buy
Chairman and CEO Richard Schulze attributed the increase in
part to the company's opening of 19 new stores during the
quarter. The company plans to open an additional 23 stores
during its fiscal third quarter.
Revenues for the quarter increased to $2.7 billion from $2.2
billion a year ago.
Best Buy operates 333 stores in 36 U.S. states, and began
selling CDs through its web site March of 1997, and DVDs last
November.
When announcing the formation of BestBuy.com, Inc. earlier this
week, Best Buy said it plans to significantly expand its
Internet offerings over the next twelve months. The new
subsidiary will "facilitate expansion, foster the recruitment
of experienced Internet talent, and provide the flexibility to
raise independent capital," according to Schulze.
S N I P P E T S & L A D D E R
_______________________________________________________
...Starting September 20, Platinum Entertainment and
musicmaker.com will begin a promotion for the upcoming album
from former Who leader Pete Townshend. On that date, the first
free, downloadable track from Pete Townshend Live: A Benefit
For Maryville Academy will be made available. Additional tracks
will be released at musicmaker.com at the rate of one per week,
until the entire album has been posted in downloadable form
online. At the end of that period, the song that has attracted
the most downloads will then be recommended by Platinum to
radio stations as the lead single. The promotion is a "strong,
tangible example of how the Internet can beneficially increase
the interaction between an artist and his following," said
Platinum CEO Steve Devick. The album, which features several
Who and Townshend classics, as well as some cover songs, hits
retail outlets September 21.
...U.K. electronic artist Tricky will unleash a radio special
on the House of Blues' HOB.com web site with the debut of
"Tricky Radio." Produced and DJ'ed by Tricky himself, the
on-demand "Tricky Radio" channel offers listeners a chance to
listen to six hours of his favorite tunes, unreleased tracks
and exclusive remixes, as well as tracks from other artists on
his Durban Poison label. Featured artists will include Method
Man, Grassroots, UB40, Genaside II & Baby Namboos and Grace
Jones. HOB.com will also offer the exclusive video webcast of
Tricky's "Durban Poison Tour" from the Bowery Ballroom in New
York City, tonight at 11:30 p.m. EDT.
...Tommy Olsson, the 17-year-old Swedish teen accused by the
International Federation of the Phonograph Industry (IFPI) of
using a web site to distribute pirated music, games and
software, was acquitted of charges earlier this week. Olsson's
site did not serve the digital content in question, but did
provide links to external sources for pirated content, and
generated a small amount of revenue from advertisements. The
judge trying the case said Olsson's actions may make the youth
guilty of "contributory infringement," a violation under
copyright doctrine with which Olsson was not charged.
...Liquid Audio has added a number of independent labels and
distributors to its Liquid Music Network, including Aware
Records, Chesky Records, Drive Entertainment, The Music
Company, The Orchard and Smithsonian Folkways Records. The
labels are now selling their artists' music (ranging in styles
from rock to jazz to folk) using Liquid Audio software and
services, while existing independent label customers Alligator
Records, The Beggars Banquet Group, Mammoth Records, Rounder
Records and Sub Pop Records have added more music for digital
distribution using Liquid's software.
...The Interactive Broadcasting Network has signed its first
syndication partner for the regular "Dance Party" show on its
'net radio service, Cyberradio2000.com
(www.cyberradio2000.com). The web radio station will begin in
the next few weeks to stream its live Friday and Saturday night
broadcasts to Phoenix-area radio station KRXS-FM. In
development since 1996, the company's strategy to deliver
interactive programming from the Internet to radio stations
stands to grow in the future. "We have the ability to perform a
"reverse situation," said Cyberradio2000.com CEO Salvatore
Lepore, whereby "instead of a radio station broadcasting their
audio on the 'net, we can broadcast our inter-station on their
radio station."
...Dormont Technologies has signed an agreement to provide its
StarTracker SQL Version 5.1 music marketing software and data
service to Universal Music Group, the first major label group
to use the technology. StarTracker is a Windows-based tool that
provides access to more than 200,000 music-related marketing
contacts, including press, retail, radio and venues. The
software will enable UMG to "streamline their sales and
marketing process," said Dormont President John Degory. Other
Dormont clients include Capitol Records-Nashville, Moonshine
Music and Paradigm Music.
...On Tuesday, ASCAP hosted a performance dinner on Capitol
Hill produced to inspire discussion about music industry
issues. The show featured legendary songwriters and recording
artists Dionne Warwick, José Feliciano, Glen Campbell and Jimmy
Webb. "Most amateurs do not regard the writing of songs as
serious hard work," said Webb. "Songwriting is Hell on Earth.
If it isn't, then you're doing it wrong." In her opening
remarks, ASCAP President & Chairman Marilyn Bergman spoke of
how it is often difficult to make people understand that music
creators deserve to be fairly compensated when their work is
embraced by the public and is performed for the profit of
others. ASCAP collects and disburses performance royalties to
85,000 composers, lyricists and music publisher members.
...InterTrust Technologies has named Nic Garnett to the
position of senior vice president, Trust Utility, InterTrust
International. Formerly director general and CEO of the
International Federation of the Phonographic Industry (IFPI),
Garnett will be responsible for further developing policies and
programs within the MetaTrust Utility, a collection of
InterTrust's partners that have developed digital commerce
services based on InterTrust's digital rights management
platform. Among the MetaTrust members are BMG Storage Media,
Diamond Multimedia, Mitsubishi, MusicMatch, Reciprocal and
Universal Music Group.
...Liberty Digital (formerly TCI Music) has announced several
changes on its board of directors resulting from the company's
recent stock-debt transaction with Liberty Media. The board
accepted the resignations of Donne Fisher, Leo Hindery, Jr.,
J.C. Sparkman and Lon Troxel. The board confirmed the
appointments of Gary Howard, executive vice president and COO
of Liberty Media, and J. David Wargo, president of Wargo & Co.
Liberty Digital maintains investments in Internet content and
interactive television businesses, as well as the Digital Music
Express audio service.
...Angus Margerison has been named to oversee the London office
of Internet music software developer Global Music One, which is
slated to open later this month. He will manage the company's
activities in the UK and Europe. Over the last 20 years,
Margerison has served in senior management positions in
producing, licensing and marketing music software and videos to
the international markets. GMO has developed the Digital Audio
Postcard, which is designed as a marketing tool for labels or
artists interested in undertaking audio- and graphics-enabled
email campaigns.
T O D A Y ' S W E B N O I Z E 9 . 15 . 1999
_______________________________________________________
MusicNow, the outfit behind Woodstock.com, has launched a web site
called FirstLook.com that promotes new music, prioritized based on
the amount of money labels, artists and retailers are willing to pay.
It's not payola; the site makes its "chart placement for sale"
approach known to all comers and ultimately has no higher authority
to answer to, as broadcast radio does with the FCC.
FirstLook.com hopes to attract content providers large and small with
the promise that its audience, mainly teens and college students,
relishes finding hip, new bands. And we ask ourselves: what hipper,
newer bands can there be than those financed by the richest record
companies in the business?
MusicNow insists that acts paying low click-through rates -- thus
listed at the bottom of the site's totem pole -- stand as good a
chance of being discovered as the well-financed artists, who pay
premium rates for top billing.
We admire the marketing and sales potential of FirstLook.com, but
mostly we admire its savvy business model. Offering a sliding scale
for music advertisers, the company is tapping into the industry's
insatiable drive to tie chart action to an act's relevance and,
ultimately, its market success.
N E W S H E A D L I N E S
_______________________________________________________
-> Relaunched IUMA Site Integrated with EMusic.com
-> FirstLook.com Offers Pay-per-Click Marketing Outlet
-> Lycos Adds 30 DMX Channels to Radio Network
-> Listen.com Adds Links to Liquid Audio Network, Musicmaker
S N I P P E T S & L A D D E R
_______________________________________________________
-> K-tel Sells Subsidiary in Finland
-> AmuZnet Adds Custom Discs, Downloads
-> CustomDisc.com Launches Affiliate Sales Program
-> MusicMatch Entering Retail Stores
-> SRS Intros Winamp Plug-in
-> Ladder: RealNetworks
-> Ladder: Best Buy
S T A R T N E W S
_______________________________________________________
in MARKETPLACE
-> Relaunched IUMA Site Integrated with EMusic.com
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5803
At long last, one of the Internet music world's pioneers,
Internet Underground Music Archive (IUMA), has relaunched its
web site, simultaneously reaffirming its commitment to helping
unsigned artists maximize the Web's potential.
The new IUMA site is more closely tied to EMusic.com, Inc.,
which completed a merger with IUMA last month.
The relaunched site houses nearly 5,000 web sites for unsigned
artists, each of which contains multiple pages of streaming
songs (MP3 or RealAudio), lyrics, artist biographies, photos,
tour dates, images and artwork.
IUMA is also providing artists with access to Artist Uplink, a
free web site creation software that lets acts post up to 10
MP3 or RealAudio song files at self-designed sites, customize a
site using hundreds of graphic and text choices, and easily
update and edit existing content [see 8.30.99 IUMA's New Web
Publishing Solution Sign of Things to Come].
According to Antony Brydon, general manager of IUMA, the
relaunch presents artist sites in a more streamlined fashion. A
new interface eliminates superfluous bells and whistles, like
repurposed editorial content and certain "bandwidth-hogging
features," Brydon said.
"All we're trying to get users to do is hit the home page, find
their genre, and listen to as much music as fast as possible,"
Brydon said.
Despite being part of the EMusic.com family, IUMA will maintain
a distinct identity for the most part, Brydon said. While IUMA
caters to unsigned artists, EMusic.com uses relationships with
high-profile independent record labels to sell music from
better known artists, such as Frank Black, They Might Be Giants
and the Mighty Mighty Bosstones.
However, the two sites will share a back-end system that lets
IUMA track the popularity of its acts and potentially use
Emusic.com to cross over breaking acts to EMusic.com's retail
and label partners, Brydon said.
Nonetheless, IUMA's presence on the EMusic.com web site will be
subtle, most likely in the form of certain selections in the
EMusic.com store, and recommendations placed on that site by
IUMA, and, possibly, by EMusic.com artists, Brydon said.
In August, IUMA said it would spread its name to Yahoo!, by
featuring artists on the popular web portal's new Yahoo!
Digital entertainment showcase site [see 8.23.99 Yahoo! Adds
Ecommerce, Publishing to New Digital Site].
Brydon would not share details about other potential IUMA
content syndicators, but said IUMA is hopes to establish
relationships with more portals, rather than music web sites.
"We're trying to hit the guys that have the really broad mass
audience," Brydon said.
Having established its position on the Internet in 1994, IUMA
is counting on its reputation and history to attract new
artists, music fans and industry people to its online service.
Brydon said that unlike competitor MP3.com, which mostly offers
music by unestablished acts, but has done promotions with Tom
Petty, Alanis Morissette and others, IUMA plans to continue to
focus on unsigned artists.
The focus of MP3.com and similar sites, Brydon said, seems to
be to "get their toes wet and then move on to greener
pastures." Because its association with EMusic.com, IUMA is
able to focus only on helping unsigned artists, Brydon said.
Earlier this week, EMusic.com received a shot in the arm when a
Wall Street Internet analyst, Sara Zeilstra of Warburg Dillon
Read, known for skepticism toward many online ecommerce
ventures, told financial publication Barron's that she expects
the Internet music company to be "profitable faster than many
other companies," specifically by the end of 2001, within 15
quarters of its inception.
In coming months, IUMA will add downloadable music sales to its
site, relaunch Radio IUMA and add proprietary editorial
content, as well as user-submitted material, Brydon said.
_______________________________________________________
in MARKETPLACE
-> FirstLook.com Offers Pay-per-Click Marketing Outlet
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5809
Offering a legitimate spin on the illegal payola scheme for
promoting artists, MusicNow, Inc. has launched FirstLook.com,
which solicits labels, artists and retailers to pay for
preferred chart positioning, and presents a list of streaming
songs prioritized by the pay-per-click amount each provider
pays.
An "advertiser," whether a label, artist, retailer or other
party, may list a song at the site beginning at $.01 per click,
meaning MusicNow pays that amount each time a site visitor
clicks to hear the song. Site visitors are informed upfront
that the music on the FirstLook.com chart has been paid for by
content providers.
MusicNow hopes artists and record labels will want to use the
site as an online promotion and marketing tool. Clients receive
demographic reports about the visitors clicking to hear songs,
and consumer song ratings.
"Unlike traditional methods of music sampling, FirstLook.com
plays to a willing, targeted audience who have come to the site
to discover the best new music and sample a wide variety of
songs," said Rand Bleimeister, founder and CEO of
FirstLook.com.
The concept is similar to a move made last year by
Flip/Interscope, on behalf of rap/metal band Limp Bizkit. The
label paid Portland, Oregon, radio station KUFO a fee to
present the band's single, "Counterfeit," as an advertisement.
The airplay gave the band a significant break that led to other
radio stations picking up the single. Now the band is
remarkably popular, with a new album spawning the alternative
radio hit "Nookie," and a headlining spot in this fall's Family
Values Tour.
Taking that type of promotion to the next logical step,
FirstLook.com lets member advertisers customize what users see
while listening to a track, and provide links to retailer,
record label and fan club web sites.
Visitors to the site may search music by genre, including pop,
hip-hop, alternative, hard rock, R&B, Latin, country and jazz.
FirstLook emails music fans when music that matches their
preferences debuts on the site.
FirstLook is MusicNow's second web venture. Its first,
Woodstock.com, went live in March, offering webcasts, chats,
interviews and other content related to July's Woodstock '99
music festival.
MusicNow hopes to establish Woodstock.com as a long-term,
stand-along music brand that offers more than festival-related
content. Prior to Woodstock '99, the site webcast a concert by
singer/songwriter Sarah McLachlan. The site currently offers
archived material from the July event, two audio channels of
streaming music from the '60s and '90s, and links to webcasts
available at other web sites.
MusicNow received initial funding from idealab!, venture
capital firm Kleiner Perkins Caufield and Byers, and Woodstock
Ventures, owner of the Woodstock Music Festival and trademark.
In 1997, Idealab! Founder Bill Gross launched GoTo.com, a
search engine that, like FirstLook.com, solicits advertisers to
provide listings on a pay-per-click basis.
_______________________________________________________
in MIX
-> Lycos Adds 30 DMX Channels to Radio Network
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5802
Lycos Radio Network has added 30 music channels to its web
site, following an agreement with digital music company DMX,
LLC, which markets and distributes the Digital Music Express
service worldwide.
DMX is providing Lycos Radio with 30 genre-specific channels of
music, such as Acid Jazz Trip Hop, Saucy Salsa, Country Rocks!
and Island Reggae. A wholly owned subsidiary of Liberty Digital
(formerly TCI Music), DMX provides digital audio services to
more than 4.7 million homes, and 65,000 businesses, on four
continents.
Launched in April with five channels programmed live by 20 disc
jockeys, through an agreement with Westwind Media, Lycos Radio
also uses audio technology provided by Westwind. A syndicator
of content for radio and the Internet, Westwind offers
production, promotion, marketing and distribution services
through affiliations with the National Association of
Broadcasters, ABC Capital Cities, National Public Radio, CNN
and the United Press International [see 4.26.99 Lycos Tunes in
Radio Network].
Among the first such services from Internet portals, Lycos
Radio was quickly followed into the market by Yahoo! Radio,
which relies on the former broadcast.com (now Yahoo! Broadcast
Services) for hosting and streaming of radio content [see
5.11.99 Yahoo! Spins Out New Broadcast Service].
Shortly after the launch of Yahoo! Radio, America Online
acquired Internet music service Spinner.com, along with MP3
software company Nullsoft, in a major move into the web radio,
downloadable music and streaming audio markets [see 6.01.99 AOL
Acquires Spinner.com, Developer of Winamp and SHOUTcast].
With its new channels, Lycos Radio has the "freedom to play the
music people want to hear, whether it's new, old, obscure or
just the songs that aren't getting the commercial play, but are
by the artists you love," said Sam Stock, program director for
the Alternative Edge on the Lycos Radio Network.
While Lycos Radio selects the music and provides news from
Reuters, and charts from Billboard Online, to listeners, users
are able to preset their favorite stations in the pop-up
player, as well as control stop, play and volume functions for
the channels.
The radio network also links to ecommerce options that
encourage listeners to buy the CDs being played, or other
music-related merchandise.
Additionally, the site provides an MP3 search engine, the
result of a joint effort between Lycos and Norway-based Fast
Search & Transfer (FAST), owner of one of the world's largest
FTP file download sites [see 2.01.99 Lycos, FAST Launch MP3
Search Service].
_______________________________________________________
in INDUSTRY
-> Listen.com Adds Links to Liquid Audio Network, Musicmaker
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5810
Listen.com has entered into distribution partnerships with
Liquid Audio and musicmaker.com that give the downloadable
music portal more links to more music, and provide Liquid and
musicmaker with a potentially important outlet for product.
Launched in June, Listen.com is a portal directory for legal,
downloadable music [see 6.21.99 Listen.com Launches
Downloadable Music Portal]. A music fan may go to the site and
enter the name of a favorite act to get links to legally
available downloadable music on the World Wide Web, from any of
a dozen sources, including Emusic.com, Tunes.com, CDuctive,
Epitonic and now, Liquid Audio and Musicmaker.com.
Currently, Listen.com groups links to 75,000 tracks in 600
musical genres. The site links to legal music available in any
data format.
Liquid markets software and services for Internet music
distribution to labels and artists; it also aggressively
markets to consumers about 25,000 songs on 200 web sites that
use its solutions. The distribution deal with Listen.com is
part of that effort.
Listen.com and Liquid also agreed to develop joint campaigns to
promote Liquid's music on Listen.com and Listen.com co-branded
sites such as Music.Excite.com and Hotbot.
Listen.com will provide links to 100,000 musicmaker.com songs.
Earlier this week, Musicland Stores Corp. said it will sell
musicmaker.com tracks through its four retail web sites [see
9.14.99 Leading Retailers Continue Online Expansion].
In recent months, musicmaker has added several high-profile
record label groups to its stable. Most important to the
company is an affiliation with Big Five record company EMI,
which acquired a 50% stake in musicmaker.com in June, and
agreed to provide hundreds of thousands of songs to the
downloadable music company in coming months [see 6.10.99 EMI
Takes Stake in Musicmaker.com; Licenses Music Catalog].
Independent labels TVT Records and Zomba (Backstreet Boys,
Britney Spears, R. Kelly) also recently agreed to license music
to musicmaker [8.30.99 BMG-Affiliated Indie Takes Stake In
Musicmaker.com].
Founded as a company in December of 1998, Listen.com has
received more than $10 million in funding, beginning with seed
money from Altos Ventures and three prominent founder/CEOs:
Chris Anderson of Imagine Media, Halsey Minor of CNET, and Ted
Waitt of Gateway Computers. More recently, the company received
venture funding from August Capital and Austin Ventures. The
venture financing was led by August Capital partner, and former
HotWired CEO, Andrew Anker.
According to a spokesperson for Listen.com, the company hopes
to announce soon further content and syndication deals
currently in negotiation.
S N I P P E T S & L A D D E R
_______________________________________________________
...K-tel International has sold its Finland subsidiary to Edel
Music of Hamburg, Germany. Additionally, the companies entered
into a five-year licensing agreement in two European markets
that K-tel said will result in proceeds of $7 million. K-tel
has two web sites, Ktel.com (for U.S. customers) and Ktel.de
(catering to Germany). Ktel.com features 250,000 music titles,
custom CDs and 35,000 home video titles.
...AmuZnet.com, the entertainment and retail web site from
MediaX, has added a download section offering MP3 and Liquid
Audio tracks; a custom disc shop offering services from
CustomDisc.com; an events page featuring chats, archived
concerts and behind-the-scenes footage from concerts; and
merchandise from etoys.com, Artrock (rock memorabilia) and
Fogdog.com sportswear.
...Affiliate sales programs have extended into the custom CD
business; CustomDisc.com invites any web site to earn
commissions from click-through generated sales, by linking to
its ecommerce system. Participating web sites earn 15% on each
sale. The affiliate program is an extension of CustomDisc.com's
marketing strategy,. which has seen the service produce more
than 100 co-branded CustomDisc web sites.
...MusicMatch and software publisher Macmillan USA are offering
a shrink-wrapped version of the MusicMatch Jukebox software
program. Previously available only as an electronic download,
the MusicMatch Jukebox Deluxe will be available on store
shelves in time for the Christmas season, for around $40.
MusicMatch Jukebox lets users build extensive collections of
CD-quality digital music downloaded from the Internet and
recorded from music CDs. The software package will include 50
free MP3 songs from a variety of genres, provided by EMusic.com
and Epitonic.com.
...SRS Labs has introduced WOW Thing, an audio software program
for personal computers. The WOW Thing can be downloaded for
free from the SRS Labs ecommerce web site (www.wowthing.com),
and can be registered at a cost of $10. Designed as a
non-expiring shareware plug-in for the Winamp MP3 player, WOW
Thing uses "psycho-acoustic techniques" to process ambient
detail to increase the width, depth and height of any stereo
image, according to SRS.
...RealNetworks has promoted Thomas Frank to chief operating
officer, and named Martin Plaehn senior vice president of media
systems. Frank was previously senior vice president of media
programming and publishing at RealNetworks, while Plaehn was
formerly president of Viewpoint Digital.
...Electronics and music retailer Best Buy has named John
Walden as president of electronic commerce, to lead the newly
formed BestBuy.com. Walden is the former president and COO of
peapod.com. Best Buy.com plans to substantially expand its
Internet offerings within the next year.
T O D A Y ' S W E B N O I Z E 9 . 13 . 1999
_______________________________________________________
Will there eventually be a place on the Internet that consumers
consider a one-stop shop for downloadable music, a place that fans
believe is the only place one ever need go?
Traditionally, indie labels forge exclusive partnerships with
distributors (or major labels) to get their discs into stores.
Should independent labels now perpetuate that tradition by setting
precedents for exclusive online distribution deals?
Or might it be smarter to offer downloadable product through as many
outlets as possible, at the expense of sites that demand exclusivity?
A new installment in WEBNOIZE's Perspectives series offers answers to
these questions. Penned by Matt Wishnow, marketing director of
Insound, a favorite retail site and music community that in a short
time has become a popular destination for independent label
enthusiasts, the piece doesn't hesitate to take a side.
N E W S H E A D L I N E S
_______________________________________________________
-> New Competitor Arrives in Satellite Radio Market
-> Custom Programmer AEI Music Acquires Video Imaging Outfit
-> WireBreak to Launch First Interactive Short Programs
S N I P P E T S & L A D D E R
_______________________________________________________
-> Billboard Expanding Talent Net Into Asian Market
-> Free ThrottleBox.com Membership For AFIM Members
-> WetFeet.com Publishes Job Guide
-> Ladder: Rocket Network
-> Ladder: Spun.com
S T A R T N E W S
_______________________________________________________
in MARKETPLACE
-> New Competitor Arrives in Satellite Radio Market
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5779
As increasingly crowded roadways, malls and Internet servers
attest, Americans love to drive, shop and keep in touch with
each other. With that in mind, Interactive Radio Corp. (IRC)
hopes in 2001 to launch a satellite-based, interactive radio
service allowing consumers to listen to music, buy CDs, send
email and globally position themselves -- all from the comfort
of the driver seat.
Promising to present more diverse functionality than
competitors CD Radio and XM Satellite Radio, IRC's RadioSat
system will combine digital audio broadcasting, ecommerce,
personal communications services, emergency locators and
digital navigation.
A subsidiary of Omicron Technologies, Inc., IRC has acquired
ViaSpace Radio, Inc. and Radio Satellite Corporation, and the
companies' patented, satellite-based RadioSat technology.
Omicron issued 5 million common shares, worth a combined $13.7
million to the two companies, in exchange for 100% ownership.
Separately, CD Radio and XM Satellite are developing
subscriber-based, satellite-to-auto radio networks that deliver
commercial-free programming of music, news, sports and
information on a nationwide basis next year [see related
items]. The services will not include any of the two-way
features offered by RadioSat. However, those companies will
have a head start in the market with consumers, and have
already sewn up agreements with content providers, consumer
electronics companies for development and deployment of special
receivers, and automotive manufacturers for installation [see
related items].
RadioSat will deliver content using in-car terminals that
include global positioning system (GPS) receivers, two-way
communication features and a touch-screen. The receivers are
expected to retail for around $200, while the RadioSat service
will cost approximately $10 per month, according to IRC.
"Our radio technology has the potential to fundamentally alter
the relationship of people to their cars," said Dr. Carl
Kukkonen, chairman of IRC. Both Kukkonen and IRC technical team
leader Gary Noreen are former executives with the National
Aeronautical and Space Agency (NASA).
The service will differ from the competing satellite-to-auto
systems in that RadioSat will offer interactive features like
paging, email, mapping and directional services and instant
commerce from AM and FM radio stations via "order buttons."
"If you're listening to the latest song by, say, Garth Brooks,
and you just love it and want to go out and buy it, all you've
gotta do is press a button, and the transaction is complete,
it's charged to your account and [the system] sends you an
email telling you how long [delivery[ will take," said Sak
Narwal, chief financial officer for Omicron.
Also unlike CD Radio and XM Satellite, IRC hopes to save effort
designing, construction and launch of proprietary satellites by
using its patented technology to use underutilized satellite
capacity provided by existing satellites maintained by other
companies, Narwal said.
Using other companies' satellites makes launching the service
"a lot simpler and a lot cheaper," Narwal said.
IRC is negotiating with companies to use of their satellites,
according to Narwal. Additionally, IRC is in talks with content
production and consumer electronics companies.
IRC also intends to distinguish itself further from CD Radio
and XM Satellite by launching services covering much of the
rest of the globe after 2001, Narwal said.
Omicron is involved in the acquisition, research and
development and marketing of technologies for the aerospace,
telecommunications, defense and consumer electronics
industries. The company also maintains interests in
Internet-based businesses, including gaming sites Lucky Eight
Casino and MaXuM Bingo.
_______________________________________________________
in INDUSTRY
-> Custom Programmer AEI Music Acquires Video Imaging Outfit
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5789
AEI Music Network, Inc., a provider of custom music programming
to businesses around the world, has acquired Sight & Sound
Entertainment, which delivers video and imaging services
primarily to the retail and hospitality industries. Terms of
the acquisition were not disclosed.
Like its competitors Muzak and DMX, AEI Music's main enterprise
involves supplying businesses with custom programmed music,
focusing mainly on the retail, specialty retail, restaurant,
hotel and airline industries. AEI claims a client base of
130,000 businesses in 50 countries.
Earlier this year, AEI launched AEI Music Markets - Worldwide
(AEI/MMW), a division dedicated to music licensing and compact
disc creation services for worldwide corporate "brand
extension" projects [see 4.05.99 AEI Music Launches Licensing
and CD Production Division].
The addition of Sight & Sound will play into AEI's planned
introduction of digital distribution services using the
Internet, broadband and digital broadcast networks worldwide,
according to the company.
Sight & Sound has for the past 17 years provided music and
video entertainment content to the fashion retail and
hospitality industries, including 75,000 video selections and
7,000 special interest features. The company serves more than
6,000 business clients, according to Sight & Sound.
"This acquisition will provide our clients with [the] ability
to establish, communicate and reinforce their brand through
music and video imaging on a worldwide basis," said Sight &
Sound President Michael DuKane, who will join AEI as U.S.
senior vice president of sales.
Sight & Sound will relocate from Redmond, Washington to AEI's
Seattle headquarters. In addition to its corporate operations,
Sight & Sound will transfer its multimedia production
facilities to AEI's headquarters.
_______________________________________________________
in MIX
-> WireBreak to Launch First Interactive Short Programs
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5786
Interactive online entertainment provider WireBreak
Entertainment plans today to launch its first four online
shows, targeting what the company calls the largest single
demographic on the Internet -- time-starved 18- to
34-year-olds.
Founded by former Paramount Digital Entertainment president
David Wertheimer, WireBreak is banking on its "digital show"
concept to draw younger consumers looking for entertaining
programming they can control. The network's programs are
delivered via streaming video and interactive Flash animation
from Macromedia [see 8.03.99 Web Networks Targeting Younger
Users With Digital Shows, Web Tools].
The shows, all of which are under 10 minutes in length, are:
"In the Neighborhood," a comedy that features a weekly guest
star taking part in "wacky adventures" guided by viewers; "News
Blast," a humorous look at current events; "Girls' Locker
Talk," in which women share with viewers advice, desires and
frustrations, and viewers choose which guests they want to see
return to the show; and "WireBreak Shortz," a showcase for
young filmmakers who create content specifically for WireBreak
that allows visitors to vote on films and exchange opinions.
"We're delivering original entertainment programming that
compliments the lifestyles of our target audience," said
Wertheimer.
The site hopes to add short-form content produced by members of
its audience, as well as by outside producers, in the near
future.
The short film market on the Web has become quite crowded of
late, with sites such as AtomFilms, The Bit Screen, D Film,
MTV.com and Sightsound.com stepping up their operations.
Other outfits, such as Digital Entertainment Network (DEN),
offer competition for WireBreak with proprietary programs
geared towards so-called Generations X and Y. The DEN web site
offers a variety of music, sports, travel and comedy programs.
The site last week announced an exclusive partnership with The
Familie, an action sports agency that will supply content to
DEN.
S N I P P E T S & L A D D E R
_______________________________________________________
...Malaysian web-content developer Cyber Music Asia will assume
regional marketing of Billboard Talent Net (BTN), under the BTN
Asia moniker, throughout Australia, Brunei, China, India,
Indonesia, Japan, Malaysia, New Zealand, Singapore, Taiwan and
other Asian territories. BTN charges unestablished artists to
promote themselves with online photos, press kits and
downloadable music. Billboard hopes to use BTN Asia to tap into
talent scenes in other countries, with initial emphasis on
expanding throughout the Asian and Pacific Rim online
marketplaces. BTN "Lounges" are due to launch on web sites
including XS MUSIC (XSmusic.com), PAIMM: The Malaysian Music
Industry Academy (Akademi.net) and Telebriti
(Telebriti.com.my), an interactive TV game show site.
...The Association for Independent Music (AFIM) has struck a
deal with Spectra.Net Communications venture ThrottleBox.com to
waive ThrottleBox business membership fees for AFIM members.
ThrottleBox offers multimedia in a proprietary downloadable
format that contains audio, video, hyperlinked still images and
text in a single, secure, portable file. Services for AFIM
members include media digitization, design and hosting services
for multimedia files. AFIM promotes the independent recording
industry; its members include record labels, distributors,
retailers and PR companies. ThrottleBox has offered content
from dozens of indie labels, and from major labels in the
Warner Music Group.
...Internet users looking for help finding jobs in show
business can turn to WetFeet.com, which has published "The
WetFeet.com Insider Guide to Jobs in the Entertainment
Industry." The guide is a behind-the-scenes look at the biggest
players in showbiz, including BMG Entertainment, CBS, NBC, News
Corp., Sony, Time Warner and Walt Disney. The guide details job
opportunities, compensation levels and career paths in each
segment of the industry.
...Spun.com, an online music exchange that allows consumers to
trade in used CDs for credit towards the purchase of new and
other used selections, has named Alex Luke its project manager.
Luke was formerly program director at Q101 in Chicago. In his
new position, Luke is responsible for overseeing content,
marketing and traffic growth.
T O D A Y ' S W E B N O I Z E 9 . 10 . 1999
_______________________________________________________
The International Federation of the Phonographic Industry (IFPI) has
brought charges against a Swedish teen who offered links from his web
site to pirated music files. It doesn't seem as if Tommy Olsson was
actually serving the files, but the IFPI says it doesn't matter, and
may seek to collect damages if the teen is convicted.
If Olsson is forced to pay damages to the European recording
industry, the decision will set a dangerous precedent worldwide for
the hundreds of web sites we've seen that do not host illegal MP3s,
but do offer links to outside servers that do.
The IFPI might reconsider the value of focusing anti-piracy efforts
on web-related activities. Research conducted by WEBNOIZE INSIDE
found that just 2.9% of survey respondents used the Web to get MP3
files. Most pirates prefer to use password-protected FTP sites,
close-knit chat communities and email to transfer illegal music files.
The worldwide recording industry may be pursuing webmasters offering
mere links to remote sources in an effort to prevent the most casual
pirates from becoming more ambitious. But even if that were to work,
holding up a handful of web-based hobbyist music pirates as examples
will only further drive existing piracy to more covert routes.
N E W S H E A D L I N E S
_______________________________________________________
-> SFX Deal Expands Hispanic Market Presence
-> MTV Suing Imagine Radio Founders
-> Liberty Media Deal Complete, TCI Music Changes Name, Focus
-> Spike Networks Targeting Youth Market with Web Radio
-> IFPI Prosecuting Swedish Teen
S N I P P E T S & L A D D E R
_______________________________________________________
-> Trans World Site Selling Downloadable Music
-> Songs.com Launches Radio Initiative
-> Dancing Pixel Fest Soliciting Animated Music Clips
-> Ladder: Midisoft
-> Ladder: SRS Labs
S T A R T N E W S
_______________________________________________________
in INDUSTRY
-> SFX Deal Expands Hispanic Market Presence
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5773
In an effort to tap into the "robust and expanding" Hispanic
entertainment market, SFX Entertainment, Inc. has acquired 50%
of a Chicago company that specializes in Hispanic marketing,
advertising and event sponsorship. In addition to broadening
SFX's traditional business, Cardenas/Fernandez & Associates
will likely bolster its new partner's Internet operations.
Cardenas/Fernandez produces hundreds of concerts, tours,
theatrical productions, festivals and sporting events each year
in the U.S. and Mexico.
While specific terms of SFX's investment were not disclosed,
the company has an option to acquire the remaining 50% of
Cardenas/Fernandez over the next three years. Fifteen-year-old
Cardenas/Fernandez realized revenues in 1998 of approximately
$30 million, according to the company.
SFX is the world's largest live event promoter and venue
operator, partially or wholly owning and operating 82 venues.
The company also develops and manages touring Broadway shows
and provides sports marketing, management and consulting
services to athletes and broadcasters.
In June, the company unveiled an Internet strategy that
involves development of SFX.com, an agreement with Intel Corp.
to deliver 20 webcast performances from SFX venues. SFX also
plans to create an online ticket-trading operation, and invest
in other media and Internet operations [see 6.18.99 SFX Gets
It].
Although SFX has not revealed how its new partner might fit
into its Internet plans, a source close to the acquisition
agreement said that Cardenas/Fernandez "certainly will be part
of [SFX's] Internet presence" in the future.
Cardenas/Fernandez has produced concerts and tours featuring
artists such as Ricky Martin, Jennifer Lopez and Enrique
Iglesias, whose status would make them prime pay-per-view
webcast candidates.
Independently, Cardenas/Fernandez is developing a web site that
will feature content culled from its live events, including
concert webcasts, audio and video clips, interviews and more,
according to Henry Moya, manager of public relations at the
company.
"We're trying to develop a tool that allows us to provide some
of the stuff that we do live, over the Internet," Moya said.
SFX competitor House of Blues Entertainment, which recently
acquired the operations of Universal Concerts, has already
begun offering at its web site pay-per-view webcasts from its
venues [see 7.26.99 House of Blues Deal for Universal Concerts
to Boost Webcasting].
In taking the pay-per-view lead, House of Blues is looking to
"offer the artist exposure from the small club level through to
an amphitheater, partnered with live digital broadcasts over
the Internet," as indicated by Greg Trojan, president and CEO
of House of Blues Entertainment, in a company announcement.
Commenting on the SFX agreement, Cardenas/Fernandez President
and CEO Henry Cardenas indicated that SFX will enable his
company to "expand the role we play in providing linkage for
consumers and corporate marketers," as the Spanish market in
the U.S. continues its explosive growth.
In recent months, the Web has begun to blossom with sites
catering to the U.S. Hispanic market. Most recently, several
former media and food and beverage executives launched
eritmo.com, which offers six music channels, community features
and commerce services targeting both Spanish- and
English-speaking fans of Latin music [see 8.24.99 Media Vets to
Launch Latin Music Web Site].
Other services targeting the same audience include StarMedia
Network, Ole Musica! and Yupi Internet, the latter of which is
the operator of the Yupi.com web site. In August, Yupi received
an equity investment from Sony Corp. and its music and movie
divisions [see related items].
_______________________________________________________
in INDUSTRY
-> MTV Suing Imagine Radio Founders
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5774
Viacom's MTV Networks has filed a lawsuit against the founders
of Imagine Radio, the Internet radio service it acquired in
February for $14.5 million. The suit charges Rotem Perelmuter
and P. Michael Briseno with violating a "no compete" agreement
in their employment contracts.
A spokesman for MTV said it is the network's policy to decline
comment on pending litigation. Perelmuter and Briseno could not
be reached for comment.
The lawsuit, filed with New York State Supreme Court earlier
this week and first reported in Bloomberg, states that MTV
discovered electronic documents suggesting Perelmuter and
Briseno were soliciting funding for a new Internet radio
venture called Third Millenium Radio, or 3mr, and planned to
recruit MTV employees for the project. Perelmuter and Briseno
stopped working for MTV, reportedly after MTV found the
electronic documents.
According to Bloomberg, MTV is seeking a court order barring
Perelmuter and Briseno from competing with MTV until the dates
to which each agreed in their contracts, February of 2000 and
2001, respectively. The suit also seeks to prevent the pair
from hiring MTV employees.
In February, Viacom Inc. announced a new unit devoted to
developing online businesses for MTV, VH1 and other properties.
As part of that initiative MTV Networks acquired Imagine Radio
for $14.5 million, and hired Perelmuter and Briseno [see
2.23.99 MTV, VH1 to Benefit from Web Development Venture; MTV
to Acquire Imagine Radio].
In 1998, Imagine Radio was spun off by parent company Imagine
Media, and subsequently merged with music technology company
Silver Island. Imagine Media still maintains a stake in the
online radio service.
Music enthusiasts use Internet services like Imagine two ways;
first, to access niche-oriented genre-specific channels of
music, or to design a personally customized radio station that
plays only music the user enjoys.
The space is competitive. Imagine's highest profile competitor,
Spinner.com, was acquired in February by America Online, along
with MP3 software development company Nullsoft Inc. The
stock-for-stock deals were valued at a combined $400 million
[see 6.1.99 AOL Acquires Spinner.com, Developer of Winamp and
SHOUTcast].
Prior to acquiring Imagine, MTV had reportedly courted Spinner,
but talks broke down.
In February, Spinner.com closed on a fourth round of financing,
$12 million that included investments from Sony Music
Entertainment and Intel Corp. [see 2.1.99 Sony Music and Intel
Among New Investors in Spinner.com].
Last month, MTV Networks Online said it had formed a new unit,
called MTV Interactive (MTVi), to build interactivity and
ecommerce functions into MTV.com, VH1.com and SonicNet. Former
SonicNet president Nicholas Butterworth was appointed president
and CEO of MTVi [see 8.30.99 MTV Online Moving Music Properties
Into New Unit].
_______________________________________________________
in INDUSTRY
-> Liberty Media Deal Complete, TCI Music Changes Name, Focus
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5772
Having completed a stock-debt swap with Liberty Media Group,
the former TCI Music has officially changed its name to Liberty
Digital. The new name better represents its hope to help
Liberty develop programming and acquire content for its
interactive media initiatives [see 4.06.99 Liberty Media Deal
to Help TCI Music Boost New Media, TV Profiles].
Liberty Digital has begun trading on the Nasdaq market under
the symbol LDIG (formerly TUNE). The company assumed
approximately $50 million in Liberty Media debt, and received
$150 million in cash and notes from Liberty Media, along with
the majority of Liberty Media's Internet content and
interactive television assets, as well as its rights to provide
interactive video services on AT&T's cable TV systems.
The World Wide Web might be simpler than the corporate web in
which Liberty Media exists. The company is a largely autonomous
unit of AT&T, which recently completed its acquisition of
Tele-Communications, Inc. (TCI), former parent company of TCI
Music. In May, AT&T entered into an agreement to acquire
MediaOne, the third-largest U.S. cable TV operation, in a deal
that would effectively make AT&T the largest provider of cable
and Internet services in the U.S. [see 5.07.99 AT&T Scores
MediaOne, Microsoft Deals].
Liberty Digital will act as Liberty Media's "primary vehicle
for investing in and developing Internet and other interactive
media businesses," according to Liberty Media.
In addition to its 95% equity interest and 99% voting interest
in Liberty Digital, Liberty Media maintains equity investments
in Internet operations such as drugstore.com, iVillage,
priceline.com and Sportsline USA. In addition, Liberty Media
holds an 18% stake in set-top box developer General
Instruments. The company also holds interests in Discovery
Communications, Encore Media, News Corp., QVC, Time Warner, USA
Networks and other media companies.
In May, Liberty Media and TCI Music sold music video network
The Box, along with Internet property SonicNet to Viacom, Inc.,
in exchange for a 10% stake in the MTV Networks Online
subsidiary now known as MTV Interactive (MTVi) [see related
items]. Liberty Digital still maintains ownership of DMX, LLC,
provider of the Digital Music Express digital audio service.
Earlier this week, Viacom agreed to merge with broadcasting
giant CBS Corp., in a deal valued at more than $34 billion [see
9.07.99 Viacom and CBS in $80 Billion Merger]. In announcing
the merger, CBS President and CEO Mel Karmazin indicated that
the newly merged operation considers MTV.com and other MTV
Networks Online properties as vital components of its Internet
presence.
Liberty Media's interactive strategy involves developing
enhanced cable networks that let TV viewers shop interactively,
for example, by pressing a button on a television remote one
might buy a CD by an artist whose video they have just watched.
Lee Masters, Liberty Digital president and CEO, said at last
November's Webnoize '98 industry conference that "the music
business is the ideal category to really demonstrate all the
capabilities of the advanced set-top box: interactivity,
enhanced programming, transactional services, and targeting."
_______________________________________________________
in MARKETPLACE
-> Spike Networks Targeting Youth Market with Web Radio
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5767
Web design and Internet media company Spike Networks, which
built its name developing 120 corporate and institutional web
sites in Australia and Asia, has launched an Internet radio
service that targets global-minded, digital-savvy youth who
know the difference between garage rock and speed garage.
SpikeRadio presents regularly scheduled music and talk programs
spun by a team of Internet Jockeys (IJs). Among the IJs
spinning funk, electronica, world, soul and disco music for the
new venture are Dave Kendall (ex-MTV "120 Minutes"), former
MARS-FM DJ Don Bolles, Timothy Leary-cohort Trudy Truelove,
ex-KCRW jock David Ponak and an assortment of international
club DJs.
Spike Networks plans to put more than $2 million into the
venture over the next year, to develop original music,
entertainment, sports and fashion programming for the service,
according to the company.
Those effort will be aided by the nearly US$100 million that
Spike Networks raised in an initial public stock offering in
Australia in July [see 7.02.99 With IPO Offer, Spike Networks
Looking to Go Global].
Spike Radio features CD and movie reviews; music, culture and
political news; music, entertainment and lifestyle feature
stories; and chat areas.
The music service is negotiating with numerous content and
commerce partners, according to Spike Networks Associate
Producer Jonathan Pine, and is likely to launch features by the
end of the year that cater to the extreme sports crowd.
"There is a core group of surf/skate/snowboard people that use
this music as the backdrop to their lifestyle," Pine said.
"We're trying to imbue that in our channels."
In serving up cutting-edge programming for the so-called
Generation X and Y crowds -- those between the ages of 16 and
30 -- Spike Radio is attempting to separate itself from the
likes of NetRadio, Spinner.com, Green Witch, Lycos Radio and
Yahoo! Radio, which offer some youth-oriented music mixed in
with more general programming.
"The youth market we are targeting is restless, and thirsty for
innovative entertainment," said Chris O'Hanlon, founder and
chief executive officer of Spike Networks. "As traditional
broadcast radio is coming to an end, we must take chances
through a new interactive and digital approach."
As the new kid on the Internet radio block with the Down Under
accent, Spike Radio will have its work cut out for it in
spreading the gospel. In order to reach its demographic, Spike
Radio is undertaking grassroots marketing and advertising
campaigns in major U.S. cities, targeting high school and
college students with street-team tactics such as postering.
SpikeRadio will generate revenue through advertising,
sponsorships and online retail of tickets, music merchandise
and Internet concerts, according to Spike Networks.
The company recently moved its headquarters from Australia to
Los Angeles, part of its bid to expand into an international
operation. Spike Networks also plans to expand its presence in
Japan, where it maintains a Tokyo office.
_______________________________________________________
in INDUSTRY
-> IFPI Prosecuting Swedish Teen
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5775
In a case similar to one recently brought against a U.S.
college student, Swedish teen Tommy Olsson has been charged in
his homeland with Internet-related music copyright violations.
According to the Associated Press, the Swedish branch of the
International Federation of the Phonographic Industry (IFPI)
brought the charges against Olsson, who created a web page with
links to pirated music files. Olsson generated advertising
revenue from the web site.
Olsson's lawyer, Per Olof Almer, claimed his client did not
create, copy or distribute the music files in question, "he
just spread information about where to find them."
IFPI attorney Magnus Maartensson said Olsson should be held
responsible for his part in making songs on the Internet
available to "the entire world."
A verdict in the case, believed to be the first of its kind in
Europe, is expected next week. If convicted, Olsson likely
faces a fine of only $150-$250, however, the conviction would
give the IFPI the right to demand compensation for damages,
potentially a much larger amount.
The case in Sweden comes less than three weeks after University
of Oregon senior Jeffrey Gerard Levy pled guilty to illegally
distributing music, movies and software applications from a web
site. Levy is the first the person to be convicted of Internet
piracy under the 1997 No Electronic Theft (NET) Act.
Levy is scheduled to be sentenced November 2.
S N I P P E T S & L A D D E R
_______________________________________________________
...TWEC.com, the music retail web site maintained by the
massive Trans World Entertainment chain of traditional
retailers (Strawberries, Coconuts, Camelot Music), has added
downloadable music services, offering an initial inventory of
8,000 singles by more than 1,300 artists, provided by
business-to-business audio services company amplified.com.
Downloadable music on TWEC.com is available for use with the
Liquid Audio music player software, or in Microsoft's Windows
Media Audio format. Free promotional tracks currently available
include cuts from forthcoming releases by Tori Amos and Creed.
Trans World operates 969 stores in the U.S. and Puerto Rico.
...New technology comes to the aid of old with the Radio Relay
Service from songs.com, a new promotional tool to help
musicians in a variety of styles including orchestrated pop,
Americana, blues, rock and R&B. Songs.com will follow CD
mailings to radio stations with the Radio Relay Report, a
weekly e-mail service providing links to the artists' homepage
at songs.com, artist and CD promos, links to sound bites from
the songs.com website, and selected artist track listings.
...Aspiring music video directors can make a name for
themselves through the Dancing Pixel Festival
(www.dancingpixel.com), a new 3-D animation festival on the
Internet, co-hosted by Animation magazine and Brilliant Digital
Entertainment. Animators can submit work from October 1 to
December 31, 1999. A jury composed of industry leaders,
including Jim Bannister, senior vice president Warner Bros.
Online Networks, and Fred Seibert, president of MTV Online
Networks, will judge the top five animations in each category.
Prizes will be awarded to the winners in the following
categories: Best Drama, Best Comedy, Best
Experimental/Abstract, Best Music Clip and Best Commercial.
...Music software company Midisoft has named noted music
producers Jack Douglas (Miles Davis, Patti Smith), Michael
Lloyd (Frank Sinatra, Dionne Warwick), Nile Rodgers (Chic,
Diana Ross) and Tony Visconti (David Bowie, T. Rex) as charter
members of its advisory board. The board will help Midisoft
develop new music technology and Internet initiatives.
...Audio technology company SRS Labs has appointed James
Gardner vice president and chief financial officer. Gardner was
previously the chief financial officer of Cherokee
International, a switch-mode power supply design/manufacturer.
SRS Labs plans to eventually expand its audio and voice
technology to the Internet.
T O D A Y ' S W E B N O I Z E 9 . 9 . 1999
_______________________________________________________
Streaming media might be a challenge to copy and redistribute, but as
pay-per-view becomes a practical program distribution model, how can
content providers ensure that only those who pay for the stream get
to see it?
Pay-per-view concerts could become viable moneymakers for the
performance industry and other online music media outlets. If this
pans out, protecting media streams against unauthorized access will
become crucial.
"One of the problems with the Internet is that, by definition, it's
not secure," says Jack Oswald, CEO of encryption technology company
RPK Security. "And with streams, there's nothing to detect
fingerprints that say somebody accessed the stream who should not
have."
In a new feature, WEBNOIZE profiles RPK, describes the company
partnership with RealNetworks to license its encryption solution, and
explains why encryption schemes for streaming media content should
not be overlooked.
N E W S H E A D L I N E S
_______________________________________________________
-> Entertainment Boulevard to Use Financing for 'Net Expansion
-> GlobalStreams.com Launches City-Specific 'Net Radio Guide
S N I P P E T S & L A D D E R
_______________________________________________________
-> Mjuice Distributing Arkadia Jazz Label
-> Launch.com Gets 'Sporty'
-> CCS Launches Rock/Casino E-Zine
-> Best Data Shipping 64MB Portable
-> Pine Technology Releases MP3/CD Player
-> Ladder: musicmaker.com
S T A R T N E W S
_______________________________________________________
in FINANCE
-> Entertainment Boulevard to Use Financing for 'Net Expansion
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5760
Entertainment Boulevard, Inc., operator of the Vidnet online
music video channel, has completed a private placement of $4
million in stock that the company plans to use to expand its
Internet operations.
Terms of the stock deal call for $2 million to be made
available immediately from unnamed investors, and the balance
to be realized once the company files a registration statement
with the Securities and Exchange Commission, according to
Entertainment Boulevard.
Typically, investors are more interested in private placement
financing for companies that plan to go public, rather than for
companies that plan to remain privately held. The reason behind
this strategy is that a public company provides liquidity for
investors, and a greater "upside" potential.
The placement was made through Robb Peck McCooey Institutional
Services.
With the net proceeds, Entertainment Boulevard plans to expand
Internet sales and marketing efforts, brand promotion and
content expansion, and commit a portion to general corporate
purposes and general working capital.
Since changing its name from Sedmet Exploration earlier this
year following its acquisition of International Net
Broadcasting, Entertainment Boulevard has forged relationships
with numerous online entertainment and commerce outlets, mainly
to distribute its Pop-Up music video player and a library of
music videos. Among its partners are teen-oriented web site
Bolt.com, Infoseek's GO Broadcast and Mr. Showbiz sites,
CheckOut.com and several others [see 1.22.99 Sedmet to Drill
for Internet Gold as 'Entertainment Boulevard'].
In addition to Vidnet, Entertainment Boulevard maintains web
sites targeted toward movie, sports and comedy fans.
_______________________________________________________
in MARKETPLACE
-> GlobalStreams.com Launches City-Specific 'Net Radio Guide
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5766
With the launch of its City Music Network, Internet start-up
GlobalStreams.com is confident that 'net radio fans need an
aggregation site from which they may access global programs,
personalize their listening and purchase downloadable music.
From its web site, GlobalStreams points visitors to 2,500 audio
programming services on the Web. Sites are divided into five
categories including web-only radio, city-specific radio
stations, stations from around the world, college radio, and
artist-specific programming.
GlobalStream's primarily caters to music fans looking for
city-specific web radio programming, whether it be their
hometown or a locale in another part of the world. Collectively
known as the City Music Network (not to be confused with the
City Music ecommerce site from Swiss software developer
AudioSoft), GlobalStreams' service lets visitors search for
stations via a listing of more than 100 city-specific domain
names (NashvilleStreams, DublinStreams, etc.).
Because the company owns the various city-oriented domain
names, GlobalStreams is effectively "the world's Internet radio
dial," according to Michael Rechan, chief executive officer and
co-founder of GlobalStreams.com. "If they enter
'AtlantaStreams' into their browser, [web radio users] may go
right to that city, and the stations are right there."
The site also connects users to local music event schedules,
and offers downloadable music sales using Liquid Audio
technology. The ecommerce store is accessible through the
GlobalStreams web site, and through each city's domain page.
Plans for autumn include the addition of local music guide
editorial content, and expanded downloadable music sales that
include local musicians from within each city guide, Rechan
said.
By working in an A&R capacity with local music editors,
GlobalStreams plans to downloadable music by promising artists
available outside of the City Music Network, Rechan said.
Beyond offering easy connections to local and international
programming, GlobalStreams will develop a network of
proprietary, Internet-only radio stations under the
StreamsRadio.com brand. The company will launch its first
station next month, and hopes to have ten live stations within
the next year, Rechan said. Covering various music genres, the
stations will be available from each city web site in the
GlobalStreams network.
According to Rechan, the online network was launched because
the company felt "it should be easier and more enjoyable to
listen to Internet radio and access music on the Internet. We
grew frustrated of being herded like cattle through the maze of
most music web sites."
GlobalStreams has registered to own several more web domain
names, including FilmStreams.com, TVStreams.com,
DVDStreams.com, HDTVStreams.com, SportsStreams.com and
Bookstreams.com.
In other 'net radio brand-expansion news, Green Witch has
launched AudioToday, a news and information service for the
Internet audio community.
The site focuses on "the evolution of the Internet as a medium
for music and video entertainment," as well as on related areas
such as technology, legal issues, legislation, trends and more,
according to a company press release. In addition to content
from Wired, SonicNet, the Industry Standard, Ziff-Davis, CNET,
MP3.com and others, AudioToday will offer audio programs
developed with Green Witch Internet Radio.
Green Witch webcasts music in several genres, and offers artist
information pages and links to online music sales.
S N I P P E T S & L A D D E R
_______________________________________________________
...Downlaodable music company Mjuice.com has secured a
distribution deal with jazz label Arkadia Entertainment. The
two-year deal lets Mjuice sell about 300 secure MP3 jazz and
European artists, including Billy Taylor, Marlene Dietrich,
Maurice Chevalier and Edith Piaf, as well as remastered
classics by guitarist Django Reinhardt with Coleman Hawkins.
San Francisco-based Mjuice currently offers over 3,000 mainly
hip-hop, rock and dance/electronica cuts from 40 labels,
including DreamWorks, Bad Boy, Ubiquity, Alternative Tentacles
and Fat Wreck Chords.
...Virgin Records is making available at Launch.com on an
exclusive basis the debut music video from Melanie C (aka
Sporty Spice). "Goin' Down," from C's debut disc, Northern
Star, may be viewed using either the Windows Media or
RealPlayer formats. Sporty's album will be released November 2.
...Wired fans of casinos and rock 'n' roll now have a weekly
publication from which they may learn about concerts and
artists in casinos. Internet development firm CCS last week
launched the premiere issue of RockandRollCasino.com. The
online publication offers original features and columns on
artists playing in major gaming jurisdictions such as Las
Vegas, Atlantic City and Mississippi, as well as CD and concert
reviews, gambling tips and casino property features and
highlights.
...Hardware developer Best Data Products is ready to ship the
"Cabo," a 2.6 ounce portable MP3 music player with 64MB of
on-board memory, a slot for a 32MB expansion card and an LCD
display, all packaged in a palm-size transparent blue case.
Dozens of portable players that store and play back digital
music files created from CDs or downloaded through the Internet
are expected to hit the market by this coming holiday season.
The Cabo will be available immediately at retail and Internet
stores where computer and consumer electronic products are
sold. The device can play for 10 hours on power from two
triple-A batteries, and is priced at $239.
...Pine Technology in November will release the 'D'music'
portable MP3/audio CD player, which can play audio CDs as well
as MP3 CDs. It can hold over 100 MP3 tracks on one CD and does
not require a computer or Internet connection. The player is
priced at $299.
...Musicmaker.com, which specializes in custom CD compilations
and music downloading, has named Larry Lieberman its vice
president of marketing, advertising and online development.
Lieberman was previously vice president of strategic planning
and new business development at the Comedy Central cable
network.
T O D A Y ' S W E B N O I Z E 9 . 8 . 1999
_______________________________________________________
Last week Sony unveiled players for its Super Audio disc format
priced between $3,500 and $5,000. The devices play legacy CDs but
were designed primarily for its forthcoming proprietary Super Audio
format discs, which will carry a price tag of $25 each. Speakers for
the system cost $8,000 each, an amplifier costs $6,000. The players
are not compatible with DVD or DVD Audio.
Sony president and CEO Nobuyuki Idei said Super Audio systems are for
a small group of pure audiophiles. "We know it is not a big market,"
said Idei.
That's for sure. We're unsure whether our ears demand more fidelity
than CDs already provide. And even if we don't know what we're
missing, buying our Beatle albums on DVD Audio will be a cheaper
investment (at an estimated $20 each).
Perhaps Sony could consider bundling the a la carte package into one
system and sell it, along with a lifetime subscription to every Super
Audio release, for $18 billion. Then they only need to sell one to
turn a profit.
N E W S H E A D L I N E S
_______________________________________________________
-> TVT Records in Licensing, Equity Deal with musicmaker.com
-> TheMovieSource.com, Spun.com to Use Funding for Retail Sites
-> Hollywood Reporter to Launch Online Composer Registry
S N I P P E T S & L A D D E R
_______________________________________________________
-> Bush Premieres Single on EMusic.com
-> MuZic Depot Licenses CMT Content
-> MediaX Listed on Frankfurt Exchange
-> Live365.com Co-Sponsoring DJ Contest
-> RockCity.com Seeking Road Trippers
-> SoundClick Giving Bands Promo Space
-> StreamSearch Launches A/V Service
-> Sonic Foundry Intros Streaming Tool
-> Ladder: Amazon.com
S T A R T N E W S
_______________________________________________________
in INDUSTRY
-> TVT Records in Licensing, Equity Deal with musicmaker.com
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5757
Independent music group TVT Records has entered into an
exclusive licensing agreement with custom CD/downloadable music
service musicmaker.com, and taken an equity stake in the
Internet company. Financial terms of the agreement were not
disclosed.
Terms of the five-year agreement call for TVT labels, which
include TVT, Wax Trax!, Blunt Recordings, United Producers and
TVT Soundtrax, to provide music from its various catalogs to
musicmaker.com for use on custom CDs compiled by consumers
online, or as purchased downloadable song files.
Among artists on TVT labels are hard rockers Sevendust, indie
pop icons Guided By Voices and XTC, and former Arrested
Development leader Speech and DJ Hurricane. TVT also maintains
a catalog of television themes and songs from motion pictures.
Saying that the musicmaker.com deal will create more
opportunities for TVT artists, TVT Records President and
Founder Steve Gottlieb indicated that his company is readying
for a time when the Internet is "a major boon to music provider
and music fan alike."
Musicmaker.com's existing catalog offers 200,000 songs, and
will receive a boost once Big Five label group EMI adds content
from its library. In June, EMI took an equity stake in
musicmaker.com, and pledged to make available at the site more
than 500,000 songs, via an exclusive, five-year agreement [see
6.10.99 EMI Takes Stake in musicmaker.com; Licenses Music
Catalog].
Last month, musicmaker.com signed a deal with independent music
group Zomba, giving it rights to sell songs by top acts Britney
Spears, R. Kelly and Backstreet Boys [see 8.30.99
BMG-Affiliated Indie Takes Stake In musicmaker.com]. As part of
the agreement, Zomba also took an equity stake in
musicmaker.com
For its part, TVT recently closed on financing designed to aid
the company's efforts to develop and acquire labels, and better
compete with the majors [see 2.23.99 With $23M in Financing,
TVT Records Leading Trend].
_______________________________________________________
in FINANCE
-> TheMovieSource.com, Spun.com to Use Funding for Retail Sites
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5747
TheMovieSource.com, a subsidiary of Video Headquarters Inc.
that is developing a retail web site for music, films and video
games, has completed a private placement of $770,000 worth of
its common shares with unnamed investors.
Slated to go live in October, TheMovieSource.com will offer
approximately 100,000 new and used VHS and DVD titles, as well
as music CDs and video games. The site will use a web-based
interface provided by icontact.com, which will the web site to
respond in real time to customers who have questions or
problems.
Based in Alberta, Canada, Video Headquarters is a video retail
store chain that maintains more than a dozen locations, with
plans to expand into at least 10 new locations throughout
Alberta and British Columbia by the end of this year, according
to the company.
In other online music finance news, Venture-Catalyst.com, a
division of Inland Entertainment Corp., has made an investment
in Spun.com, which sells new and used CDs on the Internet, and
provides a forum for consumers to exchange music. Terms of the
investment were not released.
Spun.com has an inventory of more than 200,000 titles,
including a large library of imports and rare, out-of-print
discs. Using proprietary algorithms to monitor and regulate its
pricing and inventory, Spun.com provides real-time
market-driven prices on CDs.
"Spun.com's strong industry experience and proprietary
CD-exchange technology make them an ideal" investment, said
Evan Anderson, vice president of Venture-Catalyst.com.
On the merger and acquisition front, Powersave International
has acquired the operations of Interactive Music, Inc., a New
York City-based media company focused on the Internet
distribution of music education services. Powersave intends to
change its name to Interactive Music to "better reflect the new
direction of the company," according to a press release.
The newly named company will focus on its existing online music
lesson web sites -- www.mallofmusic.com and
www.netmusicschool.com -- which will be launched September 16,
offering guitar and piano lessons initially. The company plans
to expand its online curriculum in the near future.
_______________________________________________________
in MARKETPLACE
-> Hollywood Reporter to Launch Online Composer Registry
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5758
Entertainment industry trade publication The Hollywood Reporter
is developing an Internet service designed to facilitate music
licensing for the film, television and advertising industries.
Slated to launch later this year, The Hollywood Reporter
Composer Registry will use part of the publication's web site
as an Internet music auditioning space, through which music
composers can publish secure versions of works, for review by
producers as streaming or downloadable music.
The promotional service will use Liquid Audio music delivery
software and services to make compositions available for
preview and download. Prospective music licensees can use the
Liquid Player to sample music, read about composers, locate
contact information and stream and download the demo material.
"In today's data-on-demand society, it's...incumbent upon
publishers to give customers the information they want," said
Robert Dowling, editor-in-chief and publisher of The Hollywood
Reporter, a publication of BPI Communications.
Fellow BPI unit Billboard maintains the Billboard Talent Net
web site, an Internet showcase for new and developing artists
in several music genres. Recently, the site added a forum
section, where artists can share advice and offer guidance,
pose questions to industry insiders, and hear and read
interviews with music industry figures.
S N I P P E T S & L A D D E R
_______________________________________________________
...Trauma Records has paired with downloadable music company
EMusic.com to present the world premiere of the new single from
U.K. grunge rock band Bush. "The Chemicals Between Us" debuts
today at EMusic.com, available in both RealAudio and MP3
streams. Bush lead singer Gavin Rossdale said the promo is a
"powerful means of reaching people with our music." Bush's new
album, The Science of Things, will be released on October 26.
...Online retailer MuZic Depot has secured the worldwide,
exclusive license rights to broadcast, sell and market the
entire Country Music Television (CMT) video library of Glenn
Dean Daniels, Jr.'s family. The library, which provided the
original programming for the launch of CMT and national cable
TV syndicated show "Sing Out America," consists of more than
4,000 songs and interviews with country music and gospel
artists. Among the acts featured in the library are Hoyt Axton,
Mickey Gilley, Lee Greenwood, The Jordanaires, Carl Perkins,
Ray Stevens, George Strait and dozens of others.
...Culver City, California-based new media content developer
MediaX, the company behind web sites for Rod Stewart, J-Bird
Records and ecommerce site amuZnet.com, has received approval
for listing on the Third Market Segment of Germany's Frankfurt
Stock Exchange. In tandem with the beginning of its shares
trading on the market, MediaX plans to embark on its first
major European investor relations program, according to the
company.
...Webcast community Live365.com is supplying a cash prize and
publicity for the winner of a contest for DJs, the DJ Spin Off
Grand Finals. The event, scheduled for September 19 at the
House of Blues in West Hollywood, represents the climax of a
nationwide DJ Spin Off competition organized by music store
chain Guitar Center. The winner will receive $16,000 in prizes.
Live365 is an outlet for independent DJs, unsigned musicians,
music fans and aspiring talk-show hosts, providing
user-generated streaming media content, multiple listening
platforms and free bandwidth.
...Rockcity.com is looking for six cast members for its debut
Internet series, Rockcity Limits. Candidates must be 21 or
older and interested in taking the scenic route to Los Angeles
in a Winnebago. In October, the chosen six will embark on a
seven week cross-country trip from New York to Los Angeles.
Candidates should send in a short video (three minutes or less)
by September 15 explaining why they should be picked; the
videos will air on Rockcity.com, where viewers can log on to
vote for the finalists.
...SoundClick, a web site devoted to the promotion of
up-and-coming music artists, has launched CompleteControl, a
set of free tools that gives unsigned bands a way to promote
themselves on the Internet. CompleteControl gives bands
unlimited web space at no cost to promote their music and
videos in downloadable and streaming formats. Bands can upload
songs, lyrics, and pictures, news and reviews, fill out a Q&A
profile, and set up mailing lists.
...StreamSearch.com has launched PlanetAudio, allowing users to
easily search for, locate and listen to worldwide radio
stations via the Internet. Users can search specifically for
audio and video streams and downloadable files on the Internet
by category, including movies, radio, music, sports, news and
political events. PlanetAudio allows users to search for and
play files in any format, including RealAudio and RealVideo,
WindowsMedia, Liquid Audio, Quicktime, AVI, MP3 and MIDI.
...Sonic Foundry recently released Stream Anywhere, an
all-in-one media authoring tool for converting audio and video
for web streaming applications. Stream Anywhere allows users to
quickly and easily prepare audio, video and synchronized data
for distribution over the Internet.
...Online retailer Amazon.com has named Warren Jenson as its
senior vice president and chief financial officer. Jenson had
been executive vice president and CFO at Delta Air Lines, the
nation's third-largest airline.
T O D A Y ' S W E B N O I Z E 9 . 3 . 1999
_______________________________________________________
Amazon.com's success selling books and music has opened up the
Seattle company to wide-ranging competition -- not just retailers but
litigants as well. The company recently settled a lawsuit filed by
Wal-Mart that accused the online retailer of stealing trade secrets
by hiring away execs.
Amazon's own lawsuit against Greece-based CITI Services accuses that
company of trademark infringement for use of the Amazon Greece name.
While CITI yesterday announced it would change the name of its store
to GreekBooksOnline.com, it has vowed to fight the suit. In a
statement, CITI General Manger Greg Lloyd Smith said that because the
Amazon web domain has been "registered 1,627 different ways by as
many people," the name "is impossible to protect globally."
Amazon.com has won a small battle with CITI, and should continue to
fight the war, but risks looking like a bully if it doesn't choose
its battles carefully.
On the other hand, the retailer has little choice but to fight a suit
initiated by 30-year-old Minneapolis-based Amazon Bookstore, alleging
that it is "losing the value of its trademark, its product and
corporate identity" to Amazon.com.
Balancing out the scales of justice, Amazon.com should offer to
settle the Amazon Bookstore case before its December trial date,
since the Minneapolis store's use of the trademark pre-dates
Amazon.com's first use of its registered trademark by decades.
N E W S H E A D L I N E S
_______________________________________________________
-> Goo Goo Dolls to Headline MP3.com College Tour
-> Amazon Greece to Change Name; Legal Fight Will Continue
S N I P P E T S & L A D D E R
_______________________________________________________
-> Performers Announced for ARTISTdirect Awards Show
-> OnRadio Licenses Beatnik Audio Engine
-> Top DJs Doing Mixshows.com Launch
-> Clear Channel Stations Using Windows Media
-> Ladder: Amazon.com
-> Ladder: Tickets.com
S T A R T N E W S
_______________________________________________________
in MARKETPLACE
-> Goo Goo Dolls to Headline MP3.com College Tour
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5734
More than $340 million richer following its July Wall Street
debut [see related items], downloadable music pioneer MP3.com
is spending to produce a concert tour that features hit acts
the Goo Goo Dolls and Tonic, and promotes use of MP3
technology.
The MP3.com Music and Technology Tour will hit U.S. college
campuses from October 5 to November 17, bringing in tow a
travelling "Digital Village" technology fair that lets music
fans hear music from MP3.com artists local to tour stops, and
sample MP3 technology.
John Diaz, vice president of MP3.com industry relations, said
the event would be budget priced for college students, at about
$20.
In April, MP3.com began a relationship with Los Angeles
entertainment management firm Atlas/Third Rail that lets the
Internet music company cross-promote music by Atlas artist
clients on the Web, potentially in downloadable music formats
[see 4.27.99 MP3.com Partners With Management Company;
Sponsoring Morissette/Amos Concert Tour].
In addition to the Goo Goo Dolls, Atlas/Third Rail artists
include Alanis Morissette, Green Day, Jude, Luscious Jackson,
Savage Garden, Seal and Weezer.
As part of the deal, MP3.com agreed to co-sponsor a summer
concert tour featuring Morissette and Tori Amos.
MP3.com offers free, downloadable songs by at least 20,000
mostly unknown artists, though the site has hosted brief
promotions by higher profile artists including Tom Petty, Ice
T, Master P and Snoop Dogg.
The site is also the promotional center of MP3.com's Digital
Automatic Music (DAM) enterprise, a CD brokerage of sorts that
offers artists 50% royalties on music sold through MP3.com [see
9.02.98 New MP3.com Initiative Offers Artists 50% Sales
Royalties].
MP3.com's relationship with Atlas/Third Rail is significant
because partnerships with talent agencies could become an
important factor in the success of the market for downloadable
music. As contracts between traditional music companies and top
artists reach the end of their term, businesses like MP3.com
will bid to take on production, promotion and distribution of
new music releases. Good relationships with talent agents could
go a long way toward making those efforts successful.
In 1998, the company drew 91% of its revenue from online
advertising, 84% for first quarter 1999. The company reported
net revenues of nearly $666,000 for the three months ended
March 31, 1999, and a net loss of $1.4 million.
Even prior to its IPO, MP3.com was working hard to diversify
its enterprise. In June, a division of media conglomerate Cox
Enterprises took a $45 million equity stake in MP3.com when the
two companies pledged to create and operate several
music-related web sites [see 6.09.99 MP3.com Receives $45M from
Cox Interactive].
Earlier this week, MP3.com announced more specific initiatives;
the company plans to enter the increasingly crowded Internet
services business that caters to radio stations, pairing with
Cox Interactive Media in a joint venture that will offer
downloadable music, webcasts, ecommerce and programming to
media outlets [see 9.1.99 MP3.com to Offer 'Net Services to
Radio Stations].
The new venture, MP3radio.com, is expected to launch its first
sites within the next few months. Fellow Cox Enterprises
subsidiary Cox Radio pledged that its nearly 60 stations in 12
markets will become MP3radio.com's first affiliates.
_______________________________________________________
in INDUSTRY
-> Amazon Greece to Change Name; Legal Fight Will Continue
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5732
The operator of a book and music retail web site called Amazon
Greece plans to change its name after being sued by ecommerce
leader Amazon.com, Inc., but said that its legal battle with
that company will continue.
Last month, Amazon.com filed a lawsuit against Greece-based
CITI Services Ltd., alleging trademark infringement, mail
fraud, extortion and racketeering on the part of the Amazon
Greece web site [see 8.19.99 Amazon Suit Charges Greek
Ecommerce Site With Fraud, Extortion].
Saying that the name change, to Greekbooksonline.com, does not
affect his company's legal position, CITI Managing Director
Greg Lloyd Smith indicated in a statement that CITI maintains
that Amazon.com is "illegally operating in Greece, as well as
in other European countries. It is our opinion that the value
of the domain name (amazon.com et al), of which there are
actually over 1,600 variations, is quite diluted."
In addition to CITI Services, the legal action targets Smith
and his wife, Aikaterini Theochari, both of whom live in
Greece. Amazon.com charged that the couple engaged in a "thinly
veiled shakedown attempt" when it informed Amazon.com that they
were using the name Amazon Greece for their business, by
offering to sell a controlling interest in CITI to Amazon.com
for $1.6 million.
Smith issued a statement in August maintaining that
Amazon.com's suit was "filed as a means of harassment, a tool
used to embarrass and an opportunity to slander and libel our
company."
Yesterday, CITI Services announced it would begin promoting its
web site as GreekBooksOnline.com, although the various other
domain names the company maintains, including Amazon.gr, will
continue to point consumers to the site.
Amazon.com representatives were not available for comment at
Webnoize press time, but spokesman Bill Curry said at the time
of the lawsuit's filing that Amazon.com takes it "seriously
when someone engages in unfair business practices and tries to
pass himself off as connected to Amazon.com."
Smith said he is confident that Amazon.com will lose in a
separate lawsuit filed in April by Minneapolis-based
independent bookseller Amazon Bookstore, Inc. [see 4.16.99
Minneapolis Bookstore Charges Amazon.com With Trademark
Infringement].
That suit is scheduled to go to trial in November or December,
according to Matt Samuel, a trademark lawyer with Fish &
Richardson, the firm representing Amazon Bookstore.
S N I P P E T S & L A D D E R
_______________________________________________________
...Scheduled for Thursday, October 7 at the House of Blues in
Los Angeles, the ARTISTdirect Online Music Awards will feature
performances by Beck, Chris Isaak, Cypress Hill, Eminem, No
Doubt and the Offspring. The awards recognize excellence in
music on the World Wide Web as determined by fans voting at the
ARTISTdirect web site, and will be presented by celebs
including members of Metallica, Dwight Yoakam, Darryl Hannah
and Dave Navarro. The event will be webcast on
ARTISTdirect.com, beginning 5:30 p.m. PT.
...Web content syndicator OnRadio plans to put Beatnik's
interactive audio technology on selected web sites in its
network. OnRadio syndicates original entertainment content to
600 radio station web site affiliates. Once a user installs a
Beatnik player, a Beatnik "sonified" web site plays sound
effects, jingles and music clips, often merely with the pass of
a mouse pointer over a web object. Beatnik has licensed its
digital audio playback engine to Microsoft's WebTV Networks,
Sun Microsystems JavaSound 2.0 and Liberate (formerly NCI).
...Wired electronic music fans can get their online groove on
this long weekend by checking out mixshows.com. The site
launches its Labor Day Mixmasters weekend today at 6 p.m. EST
with several nationally known DJs mixing hip-hop, R&B, dance
and deep house. Featured mixers include DJ Kaor of Funkmaster
Flex's Big Dawg Pit Bulls, DJ DDT of WJLB Radio Detroit and DJ
Nighttrain of WFXA. The site also will feature exclusive video
of Funkmaster Flex Spinning in NYC and DJ Vince Adams on BET
Planet Groove.
...Clear Channel, which operates more than 500 radio and and
nearly 20 TV stations in the U.S., will stream its radio
station signals over the Internet using Microsoft's Windows
Media Technologies. In addition to the capability of reaching a
potential 'net audience of more than 44 million listeners,
Clear Channel was motivated to select the technology by the
fact that "we can enhance the experience for our listeners and
our advertisers by adding rich media capability to our radio
content," said Jenny Sue Rhoades, senior vice president of
Internet operations for Clear Channel.
...Jimmy Wright has resigned his post as vice president and
chief logistics officer at online book and music retailer
Amazon.com, effective immediately, according to the Wall Street
Journal. Formerly vice president of distribution at Wal-Mart,
Wright joined Amazon.com in July 1998. According to the
Journal, Amazon.com intends to name Wright's successor later
this month.
...Peter Chemin, president and COO of News Corporation and CEO
of the Fox Group, has been elected to the board of directors of
online ticket agency Tickets.com. Chemin's entertainment
industry background "adds to Tickets.com's position in the
entertainment and sports ticketing industries," said W. Thomas
Gimple, president and CEO of Tickets.com.
T O D A Y ' S W E B N O I Z E 9 . 1 . 1999
_______________________________________________________
As Elvis Costello taught the world, radio is a "sound sensation,"
even though it can sometimes be a bitch for artists to get their
music on to restrictive playlists. Thankfully, Internet radio
continues to blossom, providing more favorable access to programming
for artists and fans alike.
A new study from BRS Media finds that the number of radio stations
broadcasting on the Web has grown by nearly 1,000 in the past 12
months, and nearly 200 Internet-only outfits have joined the party.
'Net radio's continued growth is resulting in expanded commerce,
content and interactive features, with outfits like OnRadio,
OpenSpace, GetMedia and, soon, MP3.com spurring creative new media
initiatives.
Add to this the individualized media movement currently under way --
such as AOL's SHOUTcast and Live365.com, which allow music fans to
program their own stations -- and it's clear that radio owners and
other webcasters must think outside the box and cater to those whose
tastes run to under-exposed artists like Costello.
N E W S H E A D L I N E S
_______________________________________________________
-> Warner Bros. Records Selling Music Via QuickTime
-> MP3.com to Offer 'Net Services to Radio Stations
-> Audio Explosion Launches Digital Music Store, Adopts Mjuice.com Name
-> Lucent Digital Radio Testing Next-Generation Receivers
S N I P P E T S & L A D D E R
_______________________________________________________
-> Creed's Web Promo Links Radio, Retail
-> Trans World Launching B2B Program
-> Sony Intros Second Super Audio Player
-> DiMA Adds Six Members
-> Live@ Adding Content
-> Recording Academy Updates Grammy.com
-> Ladder: Mp3radio.com
-> Ladder: MP3.com
S T A R T N E W S
_______________________________________________________
in MARKETPLACE
-> Warner Bros. Records Selling Music Via QuickTime
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5705
Warner Bros. Records (WBR) has set up two streaming media
QuickTime TV channels, delivering multimedia programming and
ecommerce to wired fans, and offering increased access to
artists such as Eric Clapton, Faith Hill, Madonna, Orgy, R.E.M.
and many others.
The two channels, one for WBR and one for Reprise Records,
feature streaming audio and video content, such as
commercial-free videos that also provide on-screen artist, song
title and album title information. The channels provide links
to the Time Warner Order Center to facilitate purchase of
hard-copy music products.
Additionally, Warner Music family member Rhino Records has
launched a service on Apple's streaming media platform that
offers exclusive programming, including content from Rhino
Handmade, the label's recently launched, Internet-only
collector's imprint [see 6.24.99 Rhino Launches Web-Only
Imprint].
The WBR and Reprise channels are initially offering video
content from the labels, and will eventually include
genre-specific audio stations.
While fans of Warner Music artists may also view music videos
and listen to audio samples from some of the label group's web
sites, the QuickTime TV deal directly integrates multimedia
programming for the Internet with ecommerce. "With QuickTime's
playlist feature, we can move beyond 30-second spots and offer
audiences full-length songs and videos," said Jimmy Dickson,
WBR's vice president of new media.
The Warner labels join existing QuickTime TV content providers
such as KnitMedia, RollingStone.com, VH1 and Virgin Radio [see
7.21.99 RollingStone.com, VH1, Knitting Factory Help Launch
Apple's QuickTime TV].
The streaming media-linked ecommerce effort follows other
recent moves by Warner Music into the online retail space.
Last month, the label group began offering promotional tracks
from Sugar Ray and Martin Sexton, in partnership with CDnow.
Shortly after launching that campaign, Warner Music parent
company Time Warner and Sony Corporation of America agreed to
merge CDnow's operations into Columbia House, the club-based
music and home video seller jointly run by Time Warner and Sony
[see 7.13.99 Sony and Time Warner Merge Ecommerce Operations;
Acquire CDnow].
QuickTime TV is similar in style to services provided by both
RealNetworks and Microsoft. RealPlayer G2 software, for
instance, includes numerous RealChannels, from content
providers such as ABC News, Discovery Online, Launch Media,
LiveConcerts.com, TechWeb and ZDTV, while Microsoft provides
access to programming from audiohighway.com, broadcast.com,
hollywood.com, RollingStone.com and others from its
WindowsMedia.com web site.
_______________________________________________________
in MARKETPLACE
-> MP3.com to Offer 'Net Services to Radio Stations
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5706
In the coming months, MP3.com, Inc. will enter the increasingly
crowded market catering to radio station web sites, pairing
with Cox Interactive Media in a joint venture that will offer
downloadable music, webcasts, ecommerce and programming to
media outlets.
The new venture, mp3radio.com, is expected to launch its first
active radio station web sites in the next few months. Fellow
Cox Enterprises subsidiary Cox Radio has pledged that its
nearly 60 stations in 12 markets will become mp3radio.com's
first affiliates.
Mp3radio.com will focus initially on seven radio formats:
alternative, contemporary hit radio, country, hot adult
contemporary, rock, urban and urban adult contemporary,
according to MP3.com.
"We'll bring radio affiliates exclusive access to free music
downloads of national and local artists in their format, and
offer consumers ecommerce, music and programming aligned with
the music format they like best," said Gregg Lindahl,
mp3radio.com president and chief operating officer.
The new venture will create co-branded web sites for
participating radio stations, and split ecommerce and
advertising revenue with the stations, according to
mp3radio.com. Further, radio stations will present links at
their web sites to mp3radio.com's local music portal, and will
have access to MP3.com's Digital Automatic Music (DAM), a
record label that sells CDs for MP3.com artists.
The network will be similar to an operation from OnRadio.com,
which earlier this week announced its new ecommerce engine for
members of its online radio network [see 8.31.99 OnRadio
Application to Expand Radio Station Web Commerce]. OnRadio
(formerly ElectricVillage) also offers content, hosting and
development services to radio station affiliates.
Other companies offering similar services include
OpenSpace.com, which intends to launch a network of radio
station-branded Internet sites offering ecommerce; GetMedia,
which yesterday announced that elements of its technology will
be integrated into the radio station guide on Microsoft's
WindowsMedia.com web site; NBG Radio Network, which intends to
offer ecommerce services for radio stations through its
SeekRadio.com index and directory service; and FTM Media
(formerly Redwood Broadcasting), which recently completed its
acquisition of Interactive Radio Group, a venture offering
radio station web solutions.
Cox Interactive, which, through its relationship with other Cox
Enterprises subsidiaries also has close ties to cable TV,
broadband and newspaper entities, invested $45 million in
MP3.com in June. At the time of the investment, Cox and MP3.com
announced their intention to create and operate several
music-related web sites [see 6.09.99 MP3.com Receives $45M from
Cox Interactive].
Cox Enterprises maintains cable TV distribution, programming
and broadband communications entities (Cox Communications);
radio, TV, production and research outlets (Cox Broadcasting);
and newspaper, direct mail, marketing and book publishing
businesses (Cox Newspapers).
Cox Interactive operates a network of more than two dozen web
sites similar to Microsoft's Sidewalk sites and the CitySearch
network, offering localized areas arts and entertainment
information.
The company also maintains an investment in Internet community
company Talk City, Inc. Other Talk City investors include NBC,
The Hearst Corporation, Sony Music Entertainment and Starbucks
Coffee Company [see 5.07.99 Sony Music, Starbucks Invest in
Talk City].
_______________________________________________________
in MARKETPLACE
-> Audio Explosion Launches Digital Music Store, Adopts Mjuice.com Name
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5716
Digital music delivery company Audio Explosion has officially
launched a digital music retail site offering more than 3,000
secure MP3 song files for download and purchase, from artists
including Puff Daddy, Peter Gabriel and Sublime. The company
has also changed its name to Mjuice.com, adopting the identity
of its proprietary software music player.
In development since March of this year, the Mjuice.com web
site offers digital music in a secure MP3 format from more than
40 labels, including Alternative Tentacles, Bad Boy
Entertainment, DreamWorks, Fat Wreck Chords and Ubiquity [see
3.08.99 Audio Explosion Gets Juiced]. The site offers only
downloadable Mjuice players supporting Windows operating
systems; a Macintosh version is not currently available.
The site offers downloadable songs for $1.00 apiece, but does
not currently offer entire albums for download and purchase.
With the relaunch, consumers can now save preferences and store
personal song libraries and playlists, as well as sign up for
an email newsletter on upcoming releases and music news.
Mjuice.com (then Audio Explosion) introduced its MP3-based
security and commerce solution last November, joining fellow
digital music distributors such as AT&T's a2b music, AudioSoft
and Liquid Audio. Since that time, other operations have been
launched, including MCY.com [see 11.03.99 Audio Explosion
Launches Secured Music Delivery System Compatible With
Portables].
Mjuice.com shed its Audio Explosion tag in favor of its new
moniker, short for "Music Juice," in order to reflect the new
web site, and the downloadable music industry in general, Brown
said.
Last month, Winamp MP3 software developer Nullsoft incorporated
support for Mjuice into its latest version, providing
Mjuice.com with exposure to the more than 15 million active
Winamp users [see 8.26.99 New Winamp Supports Audio Explosion].
Mjuice.com is in negotiations with several content providers to
enable secure MP3 music delivery from other web sites,
according to the company.
_______________________________________________________
in TECHNOLOGY
-> Lucent Digital Radio Testing Next-Generation Receivers
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5714
Lucent Digital Radio (LDR) has taken another step toward
deployment of its next-generation radio technology, signing
agreements to develop prototype receivers that will offer
higher quality audio, as well as expanded data services.
Consumer electronics companies Harmon Kardon and Recoton
Corporation will separately develop and test receivers for
LDR's In-Band On Channel (IBOC) digital audio broadcast (DAB)
digital radio technology. Expected to be available for
royalty-free licensing in 2000, IBOC allows broadcasters to
convert from analog to digital radio without the need for new
frequencies or service disruption.
Via DAB, radio listeners will have the capability to receive
expanded auxiliary data services, including song title
information, station and program content, stock, news, local
traffic and weather information, email, Internet access and
more. It is expected that DAB radio receivers will initially
cost between 15% and 30% more than current high quality radios.
The LDR receivers will feature larger liquid crystal display
panels than existing radio receivers and will deliver data over
an FM or AM radio station's signal at rates up to 100 kilobits
per second, much faster than rates currently available to
mobile Internet users, according to Lucent.
A recent study conducted by Stratford Research for LDR found
that 56% of all radio listeners want a greater range of
information from their AM and FM radio programming, along with
better sound quality. LDR President and CEO Suren Pai believes
LDR's new receivers meet such demand.
"We are giving birth to a whole new generation of devices that
can decode digital radio signals," Pai stated. "Consumers...are
not just radio listeners anymore."
Harmon Kardon develops audio and video consumer products under
brands such as JBL, Infinity, Harmon Kardon, Revel, Proceed and
Audioaccess. Recoton's product line includes receivers, audio
and video accessories and car audio products. The company
recently entered into an agreement to develop receivers for CD
Radio, one of two companies building nationwide satellite radio
networks.
IBOC was developed by USA Digital Radio, a company with
significant financial backing from several broadcasting
entities, including AMFM, Clear Channel, Cox Radio, Entercom,
Gannett Company and Sinclair Broadcasting [see related items].
USA Digital began field testing its IBOC system last fall,
using technology provided by both BittWare Research Systems and
the Fraunhofer Institute, the latter of which is best-known for
its part in developing Motion Picture Expert Group Layer 2 and
3 (MPEG) audio coding technology.
LDR is a venture owned by Lucent Technologies and Pequot
Capital Management, Inc.
S N I P P E T S & L A D D E R
_______________________________________________________
...In promoting the new Creed album, Wind-up Records has teamed
with eight major retail chains and more than 200 rock radio
stations to integrate online and retail efforts. The album,
Human Clay, will be released September 28. Beginning today, the
promotion in more than 3,200 stores directs fans to the chains'
web sites, where they can find a free download of the single
"Higher." The radio promotion will allow fans to get a free
Liquid Audio digital download of "Higher" via radio stations'
web sites. Involved retailers include Amazon.com, Best Buy,
Musicland, National Record Mart, Tower Records, Trans World,
Wherehouse and the Coalition of Indpendent Music Stores.
...Trans World Entertainment Corporation plans to begin a
corporate affiliates program through its ecommerce site
(TWEC.com) allowing businesses to sell Trans World products and
services on their sites. Affiliates will receive commissions on
purchases generated at TWEC.com as a result of traffic from
their sites. In addition, affiliates will have a choice of
links for placement that range from thousands of music titles
to sections including music, movies, games and more. Trans
World operates several music retail chains, including Camelot
Music, Record Town, Strawberries and The Wall.
...Sony Electronics has introduced its second Super Audio CD
(SACD) player, a competitor product for DVD-Audio units that
will hit the market prior to the holiday shopping season.
Slated for commercial release in October, the SCD-777ES
incorporates a new Direct Stream Digital decoder that reads the
SACD watermarks, and a controller that maintains audio quality
during power supply and voltage fluctuations. The new product
will retail at around $3,500, and will carry a five-year
limited parts and labor warranty. Sony began selling its first
SACD units in the Japanese market in May. Jointly developed by
Sony and Philips Electronics, SACD is not compatible with
existing CD players, nor with DVD-Audio players in development
by other consumer electronics companies.
...The Digital Media Association (DiMA), which represents the
online music and video industry, has added six new members:
EMusic.com, Burningpoint.com, Listen.com, Qradio.com,
Discjockey.com and bestblues.com. EMusic and Burningpoint also
were elected to DiMA's board, as was Rioport, a division of
Diamond Multimedia.
...An agreement between Live@ and LiveOnTheNet aims to help web
surfers find live events, such as concerts and sports, more
quickly and easily. LiveOnTheNet will provide Live@ with
content in the form of audio and video streaming events such as
radio and weekly shows. The LiveOnTheNet content will be
showcased in the Live@TV section of the Live@ website
(www.live-at.com).
...The Recording Academy has launched the fourth version of its
official web site, Grammy.com, which provides Grammy Awards and
industry related news, and in-depth interactive articles. The
site's highlights include a Grammy search database, an online
press room for media professionals, and information on the
Latin Grammy Awards.
...Cox Interactive Media (CIMedia) has named Gregg Lindahl as
president and chief operating officer of mp3radio.com, a new
Atlanta-based company that is a joint venture between CIMedia
and MP3.com. Lindahl will lead the company's efforts to build a
network of affinity music portals on the Internet. He was
previously president and chief operating officer of Cox
Broadcasting's Eagle Research Group, where he also served as
president of Eagle Research.
Mp3radio.com also named David Scott vice president of
operations, and Dot Rhyne director of promotion and special
projects. Formerly group vice president and vice president of
site development for CIMedia, Scott will oversee the venture's
design, content programming and technology. Rhyne, previously
sales promotion director for The Dallas Morning News, will be
responsible for directing mp3radio.com's promotional revenue
opportunities.
...MP3.com has named Thomas Spiegel to its executive team, in
order to oversee strategic business opportunities for the
Internet music company. Enlisted by MP3.com as a consultant in
April of this year, Spiegel officially joined the company in
July. Prior to joining MP3.com, he was a management consultant
and private investor.
T O D A Y ' S W E B N O I Z E 8 . 31 . 1999
_______________________________________________________
Convergence is coming to your pocket as quickly as to your living
room. Manufacturers won't rest until, alongside your messages and
stock quotes, your pager delivers MP3 files stored on your hard
drive, as well as satellite-based A/V programming.
Until serious convergence is plausible, we'll settle for
functionality. Portable MP3 players are sure to be hot gift items
this holiday season, but playback expandability of available devices
is too limited. A 64MB MP3 player holds about 60 minutes of music,
and additional 32MB flash memory cards cost about $100 each.
Device manufacturers could inexpensively build cassette players into
portable units as a standard feature, but we'd rather they do all
they can to make flash memory cards more affordable by jumping head
first into the market, to make the sale of these music storage wafers
as competitive as the device market will soon become.
N E W S H E A D L I N E S
_______________________________________________________
-> Internet Radio Tuning Up
-> OnRadio Application to Expand Radio Station Web Commerce
-> New 'Net Radio Channels Promote EMusic Catalog
-> MusicMatch Adding Ecommerce Solution to Jukebox App
-> Riffage.com Relaunch Emphasizes Community
S N I P P E T S & L A D D E R
_______________________________________________________
-> Yahoo! Offering Music Publishing, Sales
-> DreamWorks and Music.com in Promo Agreement
-> BMG Club Adding Custom CD Services
-> Launch Radio Adds Affiliates
-> Entertainment Blvd. Adding Videos to Bolt
-> Spatializer Releases Winamp Plug-In
-> Software Remixes MP3s
-> Songfile.com Adds Xerox Protection
-> Ladder: Tunes.com
S T A R T N E W S
_______________________________________________________
in MARKETPLACE
-> Internet Radio Tuning Up
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5704
As the National Association of Broadcasters (NAB) kicks off its
annual radio convention today, several companies announced
plans to enter the rapidly expanding Internet radio market,
while existing outfits revealed new features designed to stay
competitive.
Internet portal company OpenSpace.com introduced the OpenSpace
Radio Network, to compete with the likes of Spinner.com,
NetRadio, Lycos Radio and Yahoo! Radio, and forthcoming 'net
radio ventures from SpinRecords.com and MP3.com. MP3.com's
project, a colloboration with Cox Interactive Media, is
expected to launch a service in October.
In June, Cox took a $45 million equity stake in MP3.com, and
the companies announced their intentions to create and operate
several music-related web sites [see 6.09.99 MP3.com Receives
$45M from Cox Interactive].
OpenSpace Radio will consist of radio station-branded Internet
sites offering ecommerce and promotional revenue opportunities
for station groups and individual outfits. The network will
invite radio station sites to supplement their proprietary
content with a variety of features from OpenSpace.com's
partners, such as CD sales, email, chat communities, weather,
sports, news and stock quotes.
The network is similar to an operation from OnRadio.com, which
today announced its new ecommerce engine for members of its
online radio network [see today's news: OnRadio Application to
Expand Radio Station Web Commerce]. OnRadio (formerly
ElectricVillage) offer ecommerce, content, hosting and
development services to radio station affiliates.
Other companies offering similar services include GetMedia,
which today announced that elements of its technology will be
integrated into the radio station guide on Microsoft's
WindowsMedia.com web site, and NBG Radio Network, which intends
to offer ecommerce services for radio stations through its
SeekRadio.com index and directory service.
OpenSpace has launched its first site, for Atlanta's KISS 104.7
FM, and expects to announce additional network affiliate
agreements in the near future.
Next month, online music distribution company SpinRecords.com
will launch SpinRadio, which will feature more than a dozen
channels of streaming audio featuring SpinRecords' artists.
Using technology from TuneTo.com, SpinRecords.com will offer a
secure streaming format that, by disabling MP3 files once they
have been streamed, prevents files from being pirated,
according to SpinRecords.com.
In addition to its twelve music and one talk channels,
SpinRadio will allow users to create an unlimited number of
personalized radio channels, based on a preference engine
database to which SpinRadio will be linked.
Terms of the TuneTo.com agreement also call for
SpinRecords.com's artists to receive promotional exposure at
TuneTo.com radio, which will feature SpinRadio as one of its
top ten featured channels and in its two channel guides. The
TuneTo receiver is currently in beta testing, and is expected
to launch in the near future.
SpinRecords is not alone in its quest to find new ways of
promoting its artists on the Internet. EMusic.com today
announced that web music service Wired Planet has added two new
channels of audio programming to its site, created with
EMusic.com, through which music fans can buy the music they
hear [see today's news: New 'Net Radio Channels Promote EMusic
Catalog].
Also today, WebRadio.com, a subsidiary of streaming media
specialist GEO Interactive, launched new functionality at its
web site, including original content, community and ecommerce
features.
Through new content agreements, the plug-in-free music service
will offer original material from both LightSpeed Group and
Lead Interactive Network Entertainment Television (LineTV).
LightSpeed will initially make twelve programs available, and
will eventually delivery more than 100 live and on-demand
programs. For its part, LineTV will license content to
WebRadio, and also provide live event production services.
Additionally, Internet Community Concepts (ICC) is providing
community guides, shopping and Internet guides;
StreamSearch.com is offering on-demand audio and video search
capabilities and pay-per-view ecommerce solutions; and What's
Fun Entertainment's EventMail offers users personalized event
calendars.
Launched earlier this year, WebRadio.com uses GEO's Emblaze
streaming technology to offer audio and video content from more
than 120 radio stations.
_______________________________________________________
in MARKETPLACE
-> OnRadio Application to Expand Radio Station Web Commerce
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5682
Extending the services it provides to radio station web sites,
OnRadio.com is employing an ecommerce engine that lets those
sites sell music from within a branded, demographic-appropriate
Internet environment.
OnRadio Commerce invites radio stations to sell CDs, games,
clothing and other merchandise from their own web sites, rather
than from separate "jump-off" ecommerce sites with which radio
stations typically have partnership agreements, according to
OnRadio.
The new system will be available by the end of September. In
addition to the 600 radio and media web sites in OnRadio's
network, OnRadio will market the solution to advertisers and
Internet portals.
The ecommerce engine will integrate music and video data
provided by Muze, Inc., as well as Liquid Muze Previews, a
streaming audio service from Muze and Liquid Audio [see 6.10.99
Liquid Audio Deals Show Broadening Strategy].
In an effort to to differentiate its ecommerce services from
competitors, OnRadio's solution adds music and sports news, and
artist profiles.
"The station is now the record store," said Thomas Tansy,
executive vice president of sales, marketing and business
development for OnRadio. Radio stations will get a cut of the
net profit from records, rather than directing that profit to
another retailer, Tansy said.
Earlier this year, OnRadio competitor GetMedia unveiled a
similar ecommerce solution. Since introducing the feature,
GetMedia has signed distribution agreements with Ticketmaster
Online-CitySearch, WebRadio.com and First Internet Media [see
related items].
Today, GetMedia announced elements of its technology will be
integrated into the radio station guide on Microsoft's
WindowsMedia.com web site, which lists more than 600 radio
station partners.
The guide lets users find out what music is playing on listed
radio stations, and click through to hear the station's
broadcast, according to GetMedia. Further, radio stations using
GetMedia's technology can display a "Buy Now" link in Internet
Explorer's Windows Radio Toolbar and in the Windows Media
Player.
Another radio network, NBG Radio Network, plans to offer
ecommerce services for radio stations, through its
SeekRadio.com index and directory service [see 6.18.99 NBG
Radio Launches Internet Portal].
_______________________________________________________
in MARKETPLACE
-> New 'Net Radio Channels Promote EMusic Catalog
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5701
Web music service Wired Planet has added two new channels of
audio programming to its site, created with EMusic.com, through
which music fans can buy the music they hear.
"EMusic Electronic" showcases electronic music available
through EMusic, while Radio They Might Be Giants is programmed
with music hand-picked by the famed art-pop group, including
plenty of its own music available through EMusic.
"There's a sizable and very real audience out there for whom
today's radio doesn't appeal -- because the nature of
commercial radio isn't flexible enough," said John Flansburgh
of They Might Be Giants.
San Francisco-based Wired Planet streams several genre-based
channels of MP3-based audio through a proprietary desktop
application. The app integrates with Wired Planet's web site,
loading artist information, photos, interviews, downloadable
songs and ecommerce pitches.
"We expect that this online convenience will be very similar to
the way that real radio helps drive interest and traffic into
traditional record stores," said Gene Hoffman, EMusic.com
president and CEO.
EMusic.com sells downloadable MP3 music as individual songs and
complete albums, including music by top rock, jazz and blues
acts. The company's inventory boasts 25,000 songs from 90
independent record labels.
_______________________________________________________
in MARKETPLACE
-> MusicMatch Adding Ecommerce Solution to Jukebox App
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5702
As part of an effort to test aspects of digital music commerce,
software developer MusicMatch, Inc. has joined an effort that
invites artists and labels to distribute copyright-protected
content to computer users.
Called Cranberry Grove, the pilot program is being co-developed
by U.K.-based international bank National Westminster Group's
Magex, along with InterTrust Technologies.
As the consumer market for downloadable, digital media content
develops, old-world media companies and smaller companies
without infrastructures responsible for handling aspects of
digital distribution are turning to service providers that
offer advice, security technology and back-end processing
power.
Reciprocal, Inc., which has a division dedicated to music
services, Reciprocal Music, is the most visible of these
enterprises. Using Cranberry Grove, Magex is jockeying for its
own position.
Launched in June, Cranberry Grove uses InterTrust's DigiBox
digital containers to package multimedia content, copyright
protection data, pricing information and usage options [see
related items]. Reciprocal also offers technology from
InterTrust among its services.
Cranberry Grove aims to provide record labels and music
distributors with ways to "implement distributed digital rights
management, and to experience digital commerce in a secure
environment," according to InterTrust.
Magex, an entity created by National Westminster (NatWest)
earlier this year, provides pilot program members with its
digital rights management and transaction processing
technologies, which are based on software developed by
InterTrust.
For its part, MusicMatch will integrate the Magex technology
into its MusicMatch Jukebox software, which will be provided to
pilot program enrollees. The jukebox application lets users
download rights-protected music tracks from the Internet,
organize music into a digital library that includes custom
playlists for use on a PC.
The pilot program is being developed to convince music
companies and artists to release commercial music over the
Internet, now that copyright protection and effective payment
mechanisms are available, according to MusicMatch President and
CEO Dennis Mudd.
"Magex has developed a service which addresses these issues and
allows us to explore new ideas and business models for the
distribution of music and music-related services on the
Internet," Mudd said.
Magex hopes to make its full service commercially available
later this year.
Magex is also working with Internet music network Tunes.com to
develop a system for distributing downloadable, commercial
music [see 7.19.99 Tunes.com to Develop Downloading System;
Releases MP3 Artist Picks]. Tunes.com also intends to take part
in the Cranberry Grove pilot program.
_______________________________________________________
in MARKETPLACE
-> Riffage.com Relaunch Emphasizes Community
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5693
Downloadable music site Riffage.com relaunched today with new
features that emphasize community building for both music fans
and musicians.
The web-based music service houses a catalog of downloadable
tracks by unestablished artists, from a diverse set of
rock-based genres: pop, rock, electronica, trance and techno.
New features encourage users to build the digital music
equivalent of "mix tapes," based on playlists they create
themselves, and share with other users to try out, and
evaluate. Users also receive instant song recommendations when
visiting the site. An online database lists live events,
personal appearances and new releases by Riffage artists.
In addition to free music, Riffage.com lets artists sell
downloadable songs and merchandise. Order fulfillment for the
site is serviced by Tooh Dineh (pronounced toe-di-NAY), a
Navajo-owned company based in northern Arizona that has
provided fulfillment services to Hewlett Packard, and assembled
electrical components for General Motors.
The service charges no up front fees to artists, imposes no
limits on storage space for digital music or other data, and
keeps just 15% of revenue collected from music and merchandise
sales. Artists set prices for all items, including downloadable
music.
Targeting artists, the new site provides a musicians-only
resource section that includes discussions, information and
advertising.
Riffage recommends music to its users by matching tastes of
different users.
"We don't point users to music based on genres, since genre
categories are arbitrary at best," said Page Murray, vice
president of marketing for Riffage.com. "When you know somebody
who shares some of your personal taste in music, you're always
interested in browsing through their CD collection."
Riffage was launched in June by Ken Wirt, former vice president
of corporate marketing at Diamond Multimedia (which develops
the popular Rio portable digital music player) [see 6.7.99
Ex-Diamond Multimedia Exec Launches Downloadable Music Site].
The site entered a marketplace that quickly became
exceptionally competitive; in addition to MP3.com and
RioPort.com, audioactive.com, audiohighway.com, Billboard
Talent Net, MusicMatch, Tunes.com and several others offer free
downloadable music.
MP3.com, the most popular downloadable music site, offers free
music and mail-order CDs by 11,000 acts; except for brief
promotions featuring Alanis Morissette and Tom Petty, none of
its artists are particularly recognizable.
Still, Riffage is well financed and has an impressive board,
with members including Michael Levinthal, a general partner of
Mayfield Fund, a capital fund with more than $1 billion under
management; Jan Henric Beuttner, a founding partner of
Bertelsmann Ventures and the first general manager of AOL
Germany; Sanford Climan, president of Entertainment Media
Ventures and former president of worldwide business development
for Universal Studios and a member of the senior management
team at Creative Artists Agency, Inc. (CAA); and Michael
Weinstein, a prominent radio industry executive, formerly of
Granum Communications and New City Communications.
Riffage.com secured its $4.2 million first round financing from
Mayfield Fund and Bertelsmann Ventures, a private firm with
funding from Bertelsmann AG, the world's third largest media
company.
Partially because the music industry establishment has yet to
offer downloadable music by its popular acts, the new breed of
downloadable music sites are able to feature only relatively
unknown artists.
Tunes.com has advanced a different strategy to encourage
consumers to listen to music by unestablished acts. Editors and
critics from the company's print publication partners, Rolling
Stone and The Source, both regularly review and endorse music
by the little known acts offering music in a section of the
magazines' web sites, called Download This.
Still other sites work to serve as large-scale downloadable
music aggregators, "one stop shops" for music. Ultimate Band
List, Tunes.com (RollingStone.com, TheSource.com), MP3.com,
even the Internet Underground Music Archive -- the original
downloadable music site -- all aggregate downloadable music and
compete to become the most popular destination on the Web for
fans.
S N I P P E T S & L A D D E R
_______________________________________________________
...Yahoo!, IUMA and Liquid Audio are allowing musicians to
publish and sell their own music online. Yahoo! Open Mic is
part of Yahoo! Digital, a multimedia destination that lets
users watch and listen to Internet broadcasts, download and
purchase audio files, remix selected music tracks, view
on-demand video channels and browse a licensed music directory.
The open mic section allows amateur musicians to upload songs,
artist descriptions and images. Submissions through Yahoo! Open
Mic is part of the Yahoo! Digital artist directory, where
people may locate and listen to the music in secure or open MP3
format. Musicians may also submit their music to either IUMA's
new Artist Uplink or the Liquid Music Network, where Liquid
Audio will distribute their songs to more than 200 web sites.
...DreamWorks Records has agreed to promote artists on the
Music.com retail web site. Additionally, Music.com has offered
DreamWorks access to sub-URLs of music.com to promote its
artists, for example, to promote Subcircus, DreamWorks may
direct fans to WWW.Subcircus.Music.com. The agreement is
Music.com's first with a major-affiliated label; Music.com said
its strategy is to "associate selected partners to its prime
piece of 'cyber-real estate.'"
...Beginning September 30, BMG Music Club will offer custom CDs
through its web site and a direct mailing sent to its nine
million members. Using services provided by CustomDisc.com,
members will be able to select songs from various genres for a
CD shipped to them with their choice of songs, artwork, title
and the option of a gift message. A ten track CustomDisc costs
about $15.99 plus shipping. The agreement is the second between
CustomDisc and BMG Entertainment. In April, CustomDisc said it
would develop customized music discs that feature BMG music for
BMG Special Products, as premiums and incentives for a wide
range of Fortune 500 corporate clients, as promo gifts and
branded, personalized incentives.
...Launch Radio Networks, which produces and distributes music
and entertainment news to U.S. radio stations, has added three
affiliates to its network, bringing the total to 1,058.
Alternative rock stations KEGL-Dallas and WBRU-Providence, and
oldies station WJMR-Milwaukee have signed on to receive music
and entertainment news, features and other coverage from the
unit of Launch Media.
...Teen-oriented web site Bolt.com has forged a strategic
partnership with Entertainment Boulevard, a provider of
streaming entertainment-related online media. Registered users
of Bolt.com will be able to use Entertainment Boulevard's
Pop-Up music video player and select and play from a roster
that includes acts such as Britney Spears and Backstreet Boys.
A selection of Entertainment Boulevard's library of music
videos will be integrated with Bolt.com's content, community
and commerce offerings in the music channel and will be updated
weekly.
...Spatializer Audio Laboratories has released Spatializer
StreamFX for Winamp, which is an audio enhancement package for
Nullsoft's leading Winamp MP3 Player. Available for free
download from Beyond.com, the StreamFX plug-in includes
Spatializer's 3D stereo technology and advanced
bass-enhancement algorithm.
...From its downloadable software section, MP3.com has begun
distributing PCDJ, an application developed by Visiosonic that
lets users mix MP3 tracks like a professional DJ would mix
vinyl, to create personalized music remixes that may be saved
as MP3 files or burned to CD. Visiosonic is a collective of
musicians, programmers and DJs that works to develop unique
music software.
...Xerox has introduced ContentGuard, new software that lets
publishers control the distribution of high-value documents
over the Internet. The National Music Publishers' Association
(NMPA) is using ContentGuard to prevent unauthorized use of
song lyric documents from its songfile.com website.
...Scott Mednick, chairman and chief strategic officer of
integrated marketing and communications company Xceed, has
joined the board of directors of Tunes.com. He brings to the
board "a unique creative vision of the convergence of the
advertising, direct marketing and interactive industries,"
according to Howard Tullman, chairman and CEO of Tunes.com.
T O D A Y ' S W E B N O I Z E 8 . 30 . 1999
_______________________________________________________
David Bowie's forthcoming album, 'hours' (Virgin), will be available
in a downloadable edition that adds a bonus track, for a limited time
prior to its release to traditional outlets on October 5.
In a statement, Bowie modestly said that because access is limited to
the sorts of broadband data pipes that make downloading a whole album
convenient, success of the experiment will be measured in hundreds,
rather than thousands, of downloads. Bowie may be being too modest.
The popularity of MP3 suggests that a great deal of music fans are
willing and able to download multiple song files.
Bowie also said he was excited to take a first step toward
demonstrating to the music industry that Internet music distribution
can be a normal outlet for sales, and less an exception to standard
procedure.
What struck us funny was Virgin's supportive, yet somewhat
non-committal anticipation of the event. "Although this process is
not necessarily indicative of how Virgin Records America will conduct
business in the future, we are excited to be pioneering this
approach," said Virgin Music Group Worldwide Vice Chairman Nancy
Berry.
N E W S H E A D L I N E S
_______________________________________________________
-> BMG-Affiliated Indie Takes Stake In musicmaker.com
-> NetRadio Boosts IPO Offering
-> MTV Online Moving Music Properties Into New Unit
-> Bowie to Release Commercially Downloadable Album
-> IUMA's New Web Publishing Solution Sign of Things to Come
-> RioPort Releases New Jukebox App, Device Interface
S N I P P E T S & L A D D E R
_______________________________________________________
-> GetMedia Expands Radio Station Web Offerings
-> Portal Service Gives Free Custom CDs
-> Ladder: GetMusic
S T A R T N E W S
_______________________________________________________
in INDUSTRY
-> BMG-Affiliated Indie Takes Stake In musicmaker.com
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5688
Label group Zomba, whose rosters include the most popular
artists of the day, has taken an equity stake in
musicmaker.com, Inc. as part of terms of a five-year licensing
agreement that will make thousands of tracks by Zomba artists
available through musicmaker's custom CD service. Terms of the
investment were not released.
The deal gives musicmaker access to songs by artists currently
among the most in demand. Zomba-owned labels include Jive, a
pop label distributed by Bertelsmann AG's BMG Entertainment
whose roster includes the Backstreet Boys, Britney Spears and
R. Kelly. Albums by Spears and the Backstreet Boys have stayed
among the top five positions of Billboard's album sales chart
for several months, and are the two biggest selling albums in
the U.S. this year.
Musicmaker.com CDs typically include up to 20 songs or 70
minutes of music, costing between $10 and $25. The site also
offers downloadable songs for $1 each, in three formats: Liquid
Audio, Microsoft Windows Media Audio and Secure MP3.
Reston, Virginia-based musicmaker.com was co-founded by Raju
Puthukarai, former president of RCA/BMG Music and Video Club
and past president of Warner Music Media.
Musicmaker.com and Jive plan to promote selected tracks from
Jive's catalog in coming months, including a holiday push that
makes previously unreleased tracks by unspecified artists
available exclusively through musicmaker.com.
In June, Big Five company EMI Recorded Music took a 50% equity
stake in musicmaker.com, as part of a five-year deal giving
musicmaker access to 500,000 EMI songs for its catalog [see
6.10.99 EMI Takes Stake in musicmaker.com; Licenses Music
Catalog and 7.19.99 EMI Readying 100,000 Tracks for
musicmaker.com].
The Zomba Group of recording companies has headquarters in New
York and London, and offices in 14 countries. The company
generates $800 million annually.
_______________________________________________________
in FINANCE
-> NetRadio Boosts IPO Offering
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5689
Internet music service NetRadio Corporation, a subsidiary of
music and software distributor Navarre Corporation, has added
nearly 700,000 shares to a planned initial public stock
offering, making the company eligible to generate as much as
$52 million.
In documents filed with the Securities and Exchange Commission
(SEC), NetRadio indicated it will offer 4 million shares priced
between $11 and $13 per share. When it filed its initial SEC
registration statement in March 1999, NetRadio estimated the
IPO would generate just over $37 million [see 3.03.99 NetRadio
Looking to Raise $37M in IPO].
In addition to amending its IPO offering, NetRadio has
contracted with new underwriters, Gerard Klauer Mattison and
The Advest Group, replacing Everen Securities.
Once NetRadio sets an offering price for its IPO shares, the
company is likely to launch its offering within 24 hours, based
on standard IPO procedures followed by companies going to Wall
Street.
NetRadio operates the NetRadio Network Internet broadcasting
service, which offers more than 120 music and information
channels. The company has indicated it plans to use IPO
proceeds for working capital and other corporate purposes,
including advertising and capital expenditures, setting up
strategic alliances, acquisitions or investments in
complementary businesses, technologies or product lines.
Navarre has designed NetRadio to drive sales to CDPoint, its
online retail outlet.
According to SEC documents, after the IPO Navarre will maintain
a 47.5% stake in NetRadio; cable TV shopping outlet ValueVision
International will hold a 14% stake.
Shortly before NetRadio filed its original IPO statement,
competitor Imagine Radio was acquired by MTV Networks. Since
that time, Spinner.com was acquired by America Online. Similar
services from the likes of K-tel, Live365.com, Lycos and Yahoo!
have launched.
_______________________________________________________
in INDUSTRY
-> MTV Online Moving Music Properties Into New Unit
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5690
Preparing an online push to add more interactivity and
ecommerce functions to its various web sites, MTV Networks
Online has formed a new unit consisting of online properties of
MTV, VH1 and SonicNet. Former SonicNet president Nicholas
Butterworth has been tapped as president and CEO of the new
unit, MTV Interactive (MTVi).
The new division will be closely tied with MTV's Buggles
Project, a technology initiative to feed MTV Online's web sites
personalized audio, video and text content, according to
Butterworth [see 2.24.99 MTV Networks Planning New Music Site].
As the new "universal music brand" for MTV Online, SonicNet
will benefit most from Buggles technologies, which will act as
"the key engine" driving SonicNet, according to Butterworth.
In coming months, SonicNet will add more personalization
features and boost the variety of genres covered at its site,
seeking to become "as valuable to opera fans as rap fans,"
Butterworth said.
MTV.com and VH1.com will also incorporate Buggles technologies,
expanding their multimedia and ecommerce features, Butterworth
said. VH1.com will relaunch in October, likely offering more
online retail options than at MTV.com, due to their demographic
differences, Butterworth said.
MTVi's goal is to bring together its media assets, brand
recognition and the international reach of the MTV family, to
create "a culture that's really technology driven, very
aggressive about partnerships and really focused on growth and
not so much size," Butterworth said.
In order to facilitate commerce on its web network, MTV
recently signed a deal to feature music content from RioPort,
the Internet portal division of Diamond Multimedia Systems.
Last month, MTV Networks and RioPort entered into an agreement
that calls for MTV to share in revenues from sales of
downloadable music from RioPort, and for MTV to take an equity
stake in the portal company [see 7.20.99 MTV Online Taking
Stake in RioPort].
MTVi also maintains a commerce relationship with online
retailer CDnow, and Butterworth said MTVi will establish other
online commerce partnerships that will allow the company to
exploit different revenue-generating opportunities.
For MTV Online competitors Launch.com, MP3.com, Tunes.com and
UBL.com, MTVi's technology, content and commerce pushes serve
as a mixed blessing, further validating the Internet music
space, while at the same time applying significant pressure on
those entities to continue to attract consumers.
In announcing the Buggles Project in February, MTV also
revealed its acquisition of Imagine Radio, an Internet music
service that, like properties Addicted to Noise, FlashRadio and
Streamland, will eventually be more fully incorporated into MTV
Online's network, Butterworth said.
MTV Online is considering further acquisitions, as well as an
initial public stock offering, Butterworth said.
First offered as part of the Prodigy online service in 1994,
SonicNet has in the last five years become one of the most
recognized online music brands. In 1997, the site's operations
were acquired by TCI Music, a division of Tele-Communications,
Inc. In May, TCI Music sold SonicNet and its affiliated web
operations, Addicted to Noise and Streamland to MTV Networks,
along with cable music network The Box [see 5.18.99 SonicNet,
The Box Joining MTV Networks Family].
In order to bring the name recognition for its online
properties up to the level of its cable TV entities, MTV
Networks has "committed a firehose of promotional support
across our television networks to the sum of $300 million over
five years" for its music web sites, according to Tom Freston,
chairman and CEO of MTV Networks.
In addition to MTVi, MTV Networks Online maintains Nickelodeon
Online, which includes various web properties, including
nick.com, nickjr.com, nick-at-nite.com, tvland.com and
redrocket.com.
_______________________________________________________
in MARKETPLACE
-> Bowie to Release Commercially Downloadable Album
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5691
Perennial tech-pioneer and classic rocker David Bowie will be
perhaps the highest-profile artist yet to release a complete
album of dowloadable songs on the Internet.
The Thin White Duke's latest release, his first to be handled
by Virgin Music Group throughout the world, will hit
traditional retail stores on October 5. But Tuesday, September
21 begins a limited two-week period during which, through 50
participating retailers, eager fans will be able to download
the complete album, entitled hours, in either the Liquid Audio
or Microsoft Windows Media Audio format.
The downloadable edition of the album appends an exclusive
bonus track.
A press release from Virgin Music Group did not list the retail
outlets on board for the promotion. Virgin Music Group
Worldwide Vice Chairman Nancy Berry emphasized that the
promotion is primarily a U.S. initiative.
"Although this process is not necessarily indicative of how
Virgin Records America will conduct business in the future, we
are excited to be pioneering this approach," Berry said.
Bowie's statement was comparably more committed to the
experiment. "I couldn't be more pleased to have the opportunity
of moving the music industry closer to the process of making
digital download available as the norm and not the exception."
Jay Samit, senior vice president of new media for EMI Recorded
Music, said EMI plans to use the venture to learn about
consumer behavior with respect to Internet music distribution.
"It makes perfect sense that such a feat be spearheaded by
David Bowie, possibly the most web-savvy of all artists and
someone who has always been on the cutting edge of popular
culture," said Samit.
While Bowie may be the most high-profile artist to release a
commercially downloadable album, he is following a trend
established last year by former Pixies leader Frank Black, who
released such an album via EMusic.com. They Might Be Giants
followed form earlier this year via EMusic.com.
Bowie is well-known for embracing state-of-the-art
technologies. The rocker conducted worldwide communications
along a 1983 concert tour using electronic mail. By 1988, he
had the first Usenet newsgroup dedicated to a single artist
(the Grateful Dead's artist-specific circle began earlier, but
at the time limited its circle to participants in California).
In 1997, Bowie was one of the first artists to release a
downloadable single to the Internet, "Telling Lies."
Last year, Bowie launched DavidBowie.com, an online community
for his fans, and the hub of BowieNet, his own ISP. Members pay
for full Internet services that also include exclusive Bowie
music, video, online events and contact opportunities with the
artist.
For music fans using telephone modem connections to download
data from the Internet, downloading an entire album of
CD-quality music could be prohibitive.
Said Bowie, "We are all aware that broadband opportunities are
not yet available to the overwhelming majority of people, and
therefore expect the success of this experiment to be measured
in hundreds and not thousands of downloads."
_______________________________________________________
in MARKETPLACE
-> IUMA's New Web Publishing Solution Sign of Things to Come
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5686
Having completed its merger with Internet music company
EMusic.com, the Internet Underground Music Archive (IUMA) has
introduced a web publishing tool that is part of the company's
renewed strategy to provide self-promotion tools to emerging
and unsigned artists.
Artist Uplink is a free web site creation software that lets
music acts post up to 10 MP3 or RealAudio song files at
self-designed sites, along with images, biographies and
performance schedules.
Artists can customize their web sites from hundreds of graphic
and text choices. The software lets users update and edit
existing content.
"Our artists have told us that they want more than a
cookie-cutter page on someone else's site," said Antony Brydon,
general manager of IUMA. "These artists already have creative
control of their music, and Artist Uplink allows them to
express the same level of creativity in their sites."
Artist Uplink is similar to Band-2-Web, an authoring software
introduced last fall by IUMA and Digidesign that has yet to
make it to the commercial market [see 11.03.98 IUMA Enables
Artists with Easy Site Creation Solution].
In development for the past six months, Artist Uplink is
available through both IUMA and the newly launched Yahoo!
Digital web site [see 8.23.99 Yahoo! Adds Ecommerce, Publishing
to New Digital Site].
Yahoo! Digital plans to integrate Artist Uplink artists into
its artist library. IUMA and EMusic.com, as well as Liquid
Audio, are partners supplying the Yahoo! site with digital
music content. Yahoo! is expected to add other content partners
to its showcase soon.
EMusic.com (formerly GoodNoise) acquired IUMA in May of this
year, in a stock agreement valued at around $12 million [see
5.17.99 GoodNoise to Acquire IUMA].
IUMA is negotiating with additional potential content
syndication outlets, according to Brydon. "As the online space
has grown, our musicians have been telling us they're kind of
tired of putting their stuff on MP3.com so MP3 fans can listen
to it, and putting it on IUMA so IUMA fans can listen to it,"
Brydon said. Through syndication, IUMA will be able to offer
artists a broader online reach, Brydon said.
The Yahoo! agreement and authoring tool represent an effort by
IUMA to present unsigned artists with new outreach avenues,
Brydon said. EMusic.com plays a major role in that effort.
"Once an [IUMA] artist reaches a certain stature and caliber,
we have a number of [EMusic.com] label partners to move them
to," Brydon said. EMusic.com has partnered with nearly 100
independent record labels, including Epitaph, Fat Possum,
Invisible Records, King Biscuit Flour Hour Records, PopSmear,
Rykodisc and Taang!
IUMA will generate revenues from Artist Uplink by offering CD
sales, and splitting revenue with artists. Once IUMA has
integrated its technology systems with EMusic.com, Artist
Uplink artists will have the ability to sell downloadable music
from their sites, a process from which IUMA will share further
revenues, Brydon said.
IUMA is considering price point recommendations for its artists
of between $.29 and $.49 per track, compared to prices of
between $.99 and $1.29 offered by Liquid Audio, EMusic.com and
other sites, Brydon said.
"It's going to be interesting to see how much value that
unsigned music can command online," Brydon said. "It's
definitely an experiment."
IUMA will unveil its redesigned web site next month, Brydon
said.
_______________________________________________________
in TECHNOLOGY
-> RioPort Releases New Jukebox App, Device Interface
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5683
RioPort, Inc., the Diamond Multimedia Systems subsidiary that
develops the popular Rio portable MP3 music player, today
released a new version of Audio Manager, a software application
for managing digital music.
Software music managers have become a hotly competitive
product. Music enthusiasts use "jukebox" applications to
record, store and organize digital music files from a CD
collection, on a PC.
RioPort's Audio Manager creates MP3 music files or Microsoft's
audio format, Windows Media Audio (WMA). A user may create
custom playlists for files, and download additional music using
an integrated web browser that includes a direct link to the
RioPort.com music downloading site.
But mostly, Audio Manager was designed to interface with
Diamond's Rio portable player devices. Diamond Multimedia plans
to ship the new Rio 500 on September 10. The device boasts 64MB
of on board memory, good for playing back an hour of
high-quality music. A 32MB expansion card retails for about
$99.
In addition to Audio Manager, for Macintosh users, the new Rios
will ship bundled with SoundJam, a Mac jukebox app developed by
Casady and Greene.
RioPort Audio Manager's highest profile competitors are
RealNetworks' RealJukebox, MusicMatch Jukebox and America
Online-owned Nullsoft's Winamp.
"In some ways those other applications are complicated, and
address the 'techie' market," said Lorraine Comstock, RioPort's
director of marketing. "As more and more consumers want to
experience digital audio, interfaces must be simple and easy to
use."
The latest version of MusicMatch Jukebox MP3 software
anticipated features of RioPort's application, adding
compatibility with the WMA audio format, as well as an internal
web browser, targeting high-speed Internet users who actively
download and play digital music files. A unique feature of
MusicMatch Jukebox is its ability to encode music files from
analog sources such as vinyl records and cassettes [see 8.18.99
MusicMatch Adds Support for Microsoft Audio Format, Drops
RealNetworks Compatibility].
When it was first released in May, RealJukebox was the fastest
downloaded software ever, with 500,000 copies downloaded in its
first three days of availability, according to RealNetworks
[see 5.6.99 Real '99 >> RealNetworks Says Jukebox App Most
Immediately Popular Software Ever]. The company says well over
one million are now in use.
Since AOL acquired Nullsoft in June, downloadable music vendor
EMusic.com has signed on to promote its catalog on Winamp, and
Winamp has added to its functionality compatibility with Audio
Explosion's secure MP3 music format [see related items].
The new Audio Manager software application is designed to work
with Diamond's Rio music players, as well as with Microsoft's
Media Device Manager API, a device interface jointly developed
by RioPort and Microsoft for future portable devices. The API
will let Audio Manager communicate with any compatible device.
The specification will be made available in September and is
expected to be adopted by leading portable device
manufacturers, according to Diamond Multimedia.
In addition to a development partnership with Microsoft, San
Jose, California-based RioPort has content partnerships with
Universal Music and cable-TV/Web presences MTV.com, Nick.com
and VH1.com. Comstock said more content partnerships are in the
works.
Fully enabled versions of RealJukebox and MusicMatch Jukebox
cost just under $30. A free, downloadable trial version of
RioPort Audio Manager lets a user encode up to 50 songs; a
fully enabled version is available to Rio owners for $4.95, and
others for $9.95. The application comes free, bundled with
Diamond Multimedia's new Rio 500 player, and with Compaq PCs.
S N I P P E T S & L A D D E R
_______________________________________________________
...Ecommerce technology company GetMedia has paired with
interactive community solutions provider Union-Street.com to
offer radio station web sites new methods of increasing traffic
and retail operations. GetMedia's technology displays song
title, artist name and album name information at web sites,
while Union-Street.com offers web site creation and ad
management tools. With the combined technologies, "radio
stations can now offer their listeners an online way to
interact with others who share the same interests and musical
tastes, as well as purchase music from their favorite artists,"
said Edward Petersen, president of Union-Street.com.
...CustomDisc.com has been enlisted to provide technology
behind web search engine Hitsgalore.com's new "Free CD Music"
feature. The service lets registered members select five songs
for a custom CD that costs users only a shipping and handling
charge. About 4,000 songs, all Billboard Top 100 cuts from the
1950s through 1990s, are available.
...Andrew Nibley has been named president and CEO of GetMusic,
the online music retail joint venture from BMG Entertainment
and Universal Music Group. Effective October 1, Nibley will
oversee and manage all operations at GetMusic, which promotes
BMG and UMG artists at sites such as peeps.com, bugjuice.com,
twangthis.com and rockuniverse.com. The co-founder of Reuters
NewMedia, Nibley was most recently president of that company.
T O D A Y ' S W E B N O I Z E 8 . 27 . 1999
_______________________________________________________
Shares of Liquid Audio rose 19.5% on Wednesday when it unveiled the
5.0 edition of its software suite, which adds support for the MP3 and
RealNetworks file formats.
When Liquid said it would go public in May, the company was
struggling to re-establish itself in the quickly developing online
music market. AT&T had effectively kept its a2b music platform
visible on the Web and in the business press. RealNetworks and
Microsoft had begun muscling in on the digital delivery market. MP3
remained more popular with consumers for downloadable music than
Liquid or any other proprietary codec. Through the Madison Project,
the Big Five music companies and IBM were field testing downloadable
music systems that did not use Liquid Audio technology.
But Liquid has made a fast and effective job of re-casting its image
and role, cutting deals with EMI, Amazon.com and Muze, and
collaborating on a portable device back-end with Texas Instruments
(which Sanyo and e.Digital have licensed).
By today, Liquid's share price had dropped back again a good 15%.
Still, it has been wise for the company to diversify its business,
and so tenaciously push an agenda it first initiated last November,
opening its functionality to digital formats other than its
proprietary Liquid Track.
N E W S H E A D L I N E S
_______________________________________________________
-> Sony to Offer Free Online Service in Germany
-> NXNW Promoting Music Fest Artists with MP3 Downloads
S N I P P E T S & L A D D E R
_______________________________________________________
-> FasTV.com Adding Label Content
-> Generation Entertainment Acquiring Online Label
-> TheMovieSource.com to Sell Music, Movies
-> SSEYO Releases Koan for Mac
-> Ironminds.com Launching College Content Site
-> Ladder: E.Digital
-> Ladder: Juno Online Services
S T A R T N E W S
_______________________________________________________
in MARKETPLACE
-> Sony to Offer Free Online Service in Germany
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5681
Sony Europe, a division of Japanese conglomerate Sony Corp.,
will tomorrow launch a free Internet access service in Germany,
in an effort to reach young, wired European consumers.
The service, called FriendFactory, eliminates monthly ISP fees,
charging users only for standard local telephone calls, and
provides 15MB of free web space and access to a library of
1,000 images. Sony Europe said it will not yet offer free
access to members of its existing U.K.-based FriendFactory
service.
A division of Sony United Kingdom Ltd., FriendFactory is
targeted toward younger consumers who wish to buy music,
clothing and games over the Internet, chat with each other
about entertainment and build homepages. Music sales are
handled by Yalplay.com (formerly iMVS).
Although FriendFactory is not directly related to Sony's music
operations, the corporation has developed a service through
which it may promote and sell its various music, movie, game
and other entertainment merchandise to members.
A Sony Interactive Services spokesman told Reuters that Sony
Europe will generate revenue primarily through ecommerce,
direct marketing, advertising and sponsorship, while its
partner in the venture, Viag Interkom, will profit from
increased traffic on its phone network.
A division of European energy and telecommunications
conglomerate the VIAG Group, Viag Interkom is a joint venture
with British Telecommunications and Norway's Telenor AS.
In the U.K., both retailer HMV and the Virgin Group offer free
ISP access [see related items]. The HMV service provides
members with free email service and direct Internet access to a
co-branded Yahoo! Internet access portal offering sales
specials on HMV products. Virgin's service provides email, chat
and free web space, as well as access to a variety of content
from Virgin's various music and entertainment properties.
In order to foster its consumer-oriented community,
FriendFactory offers eNotes, which are instant messages that
inform members of "great offers from well-known Internet
brands," according to the U.K. FriendFactory site. Sony and
Viag expect to generate revenue from commercial entities
interested in using eNotes to send targeted marketing messages
to FriendFactory members.
The partners are also offering members a software package
called ConnectionCentre that allows users to communicate with
other members of the community, in a similar fashion to
Microsoft's MSN Messenger Service and AOL's Instant Messenger
service.
The European ISP market heated up when AOL Europe earlier this
week launched a subscription-free ISP in the U.K., and
announced that beginning October 1 it will provide unlimited
online access in Germany for a flat monthly rate, not including
telephone charges.
AOL engineered the move in order to foster growth in the German
market, and up the stakes for Deutsche Telekom, the market
leader, which does not offer a flat rate service.
AOL Europe launched in 1995 with Bertelsmann AG, the German
media conglomerate which recently sold off more than 7 million
shares of AOL [see 8.24.99 EMI Raising $500M Through Bond Sale;
Bertelsmann Selling AOL Stock, Expanding 'Net Presence].
_______________________________________________________
in MARKETPLACE
-> NXNW Promoting Music Fest Artists with MP3 Downloads
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5677
More than 180 downloadable music files have been posted at the
web site for the North By Northwest Music Festival (NXNW),
offering exposure for acts playing the event, as well as a
sneak peek at the festival for fans and music industry types.
Being held in Portland, Oregon, from September 30 through
October 2, NXNW will feature over 300 relatively unknown bands
and solo artists from around the world.
In addition to the MP3 area, the NXNW web site spotlights
particular artists and labels weekly. The site also provides
performance schedules and links to artist web sites.
"Hopefully this outlet will make club-hopping decisions easier
for our registrants, and make bands even more accessible to all
the music industry professionals who attend," said Roland
Swenson, managing director of NXNW. Additionally, the MP3 files
help reinforce the new media focus of the conference panels,
Swenson said.
In addition to live music showcases, the event offers panels
addressing topics such as digital delivery, online publicity,
webcasting and Internet revenue generation. Webnoize is
co-presenting a panel on competing digital music delivery
formats.
NXNW is co-presented by South By Southwest (SXSW) and
Willamette Week, the alternative newspaper in Portland.
S N I P P E T S & L A D D E R
_______________________________________________________
...FasTV.com, a searchable Internet video service offering
entertainment, news, weather and information content, has
expanded its archive via partnerships with Capitol Records,
DreamWorks Records, Fox Family Channel, Game Show Network,
MovieFlix.com and 20th Century Fox. The new partners will
supply FasTV with music videos, music tour footage, celebrity
interviews, movie clips and trailers, behind-the-scenes footage
and more. The deals are important to FasTV because "video is
the most visually exciting element of the Web, and
entertainment highlights are especially appealing to
consumers," said Chuck Ball, vice president of marketing and
business development at FasTV.
...Generation Entertainment has signed a letter of intent to
acquire online music company E Music Productions (not to be
confused with downloadable music vendor EMusic.com). A press
release from Generation said that the acquisition will create
"a new frontier offering 'garage bands' a rare opportunity to
be discovered." Generation Entertainment maintains an online
music retail store at CDMusic.com.
...TheMovieSource.com plans to join with icontact.com in
October to sell and distribute filmed entertainment and music
online. The agreement aims to help TheMovieSource.com improve
its customer service through its relationship with
icontact.com, which provides a web-based interface that will
allow TheMovieSource to repond in real time with customers who
have questions or problems. The retail web site will offer more
than 60,000 movie and music titles.
...SSEYO, a developer of Internet audio applications and
technology, has introduced Mac versions of its popular Koan
Internet audio engine and tools that can now play MP3 samples.
Web site developers and musicians can use the new Koan tools to
create MP3-based generative audio applications for Mac users.
The applications will also play via the Koan Plugin on both
Apple OS7+ and Microsoft Windows 95/98 systems.
...The University of Missouri School of Journalism on August 30
will take the wraps off Ironminds.com, a daily content network
focusing on college students. The site's partners include
NewCity.com, a national, alternative media network of city and
content sites; Collegestudent.com, an online network of local
campus communities; Coedmall.com, which features music- and
dating-related content; and Impressionmag.com, a biweekly
general interest publication. Ironminds.com has also named
several new members to its advisory board, including: Jim
DeRogatis, rock critic for the Chicago Sun-Times; Celia Farber,
former Spin magazine columnist and current staff writer for
Gear magazine; and Matt Richtel, who covers technology and the
Silicon Valley for The New York Times and Cybertimes.
...Portable audio device company e.Digital has tapped Allen
Cocumelli for its board of directors. Cocumelli currently
serves as chief operating officer and general counsel for
Simple Network Communications.
...Andrea Vitale, former director of music club marketing for
BMG Direct's classical music service, has been named director
of direct marketing for Juno Online Services. She will be
responsible for executing Juno's marketing campaigns, including
direct mail and direct response TV advertising. Prior to
joining BMG Direct, Vitale held positions in both the music and
video advertising groups at Columbia House.
T O D A Y ' S W E B N O I Z E 8 . 26 . 1999
_______________________________________________________
Yesterday MP3.com published text of a licensing agreement for ARIS
Technologies' Phase 1 watermark solution, which will make portable
digital audio devices and related tools and content compliant with
standards developed by the Secure Digital Music Initiative (SDMI).
While we couldn't confirm whether the text represents a contract
currently in circulation or a draft, section six of the document says
that companies licensing a decoder for ARIS watermarks (device
manufacturers, software player developers) will pay $10,000 per year;
decoder licensees who need access to its back-end code will pay
$25,000. If you're licensing an ARIS encoder for use in a
development tool you plan to sell, you'll pay the annual fee, plus
25% of gross revenues on the tool.
Keep in mind that the agreement addresses only licenses for encoders
and decoders to be used in development tools, devices and player
software. It does not cover possible revenue flow for ARIS from the
licensing of its watermarking technology to content developers for
use in their downloadable music.
Over the years, WEBNOIZE has provided significant coverage of the
companies vying to be the chosen watermarker, and for good reason.
Unlike audio formats, watermarking is hardly an interchangable
technology. Now that SDMI has selected ARIS to protect copyrighted
music files, it is apparent how a coronated watermarking company
would turn music security into big business.
By taking 25% of gross revenues from technology developers offering
SDMI-compliant solutions, ARIS will make good money, but might also
prevent small businesses from making the profit they need to stay
alive. Companies with deep-pockets and multiple revenue sources,
such as Microsoft or IBM, could benefit from ARIS' high commission
rate, since it could deter competition from smaller, less diverse
companies.
N E W S H E A D L I N E S
_______________________________________________________
-> BMG Entertainment Revenues Rise to $4.6B for Fiscal '99
-> Handleman Profits, Sales Up for First Quarter
-> New Winamp Supports Audio Explosion
-> New Media Developer MediaX Closes $2M Funding Round
S N I P P E T S & L A D D E R
_______________________________________________________
-> Amazon Adds Warner Music Downloads
-> Cafe Odyssey Completes PopMail Deal
-> MTV, Simon & Schuster Team for 'Daria' Multimedia Titles
-> L.A. Music Awards to Be Webcast
-> Online Jazz Program Debuts in October
-> ASCAP Announces Jazz Award Winners
-> Ladder: XM Satellite Radio
-> Ladder: Shockwave.com
S T A R T N E W S
_______________________________________________________
in FINANCE
-> BMG Entertainment Revenues Rise to $4.6B for Fiscal '99
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5671
BMG Entertainment, the music and entertainment division of
European media conglomerate Bertelsmann AG, reported revenues of $4.6 billion for fiscal year 1999, up from $4.3 billion a
year ago.
In addition to the revenue boost, the company reported a 17.5%
share of the U.S. album market, its best showing ever in that
business, and second behind Seagram Company's Universal Music Group.
BMG said its 28.5% share of the U.S. singles market puts the
label group first among the competing Big Five music companies
EMI, Sony Music, Universal Music and Warner Music.
During the past 12 months, 25 BMG artists sold over one million
units worldwide, including Whitney Houston, Alan Jackson, Dave
Matthews, Sarah McLachlan, 'N Sync, OutKast and TLC.
For the three months ended June 30, 1999, Universal Music
reported revenues of $1.34 billion, down from $1.44 billion
during the same quarter in 1998. Universal recorded operating
losses of $46 million, compared to $92 million for the same
period of 1998 [see 8.19.99 Universal Music Cuts Losses as
Seagram Surpasses Wall St. Estimates].
During the fiscal year, BMG and Universal Music solidified
their relationship, forming a joint venture to promote and sell
music online at GetMusic.com [see 4.07.99 Seagram, Bertelsmann
to Merge Internet Music Operations]. Additionally, BMG joined
Universal Music's downloadable music effort, along with
technology companies AT&T, InterTrust and Matsushita [see
5.26.99 AT&T, BMG and Matsushita Join Universal's Digital
Team].
BMG owns more than 200 record labels in more than 50 countries,
including Arista Records, RCA Records and Windham Hill Records.
_______________________________________________________
in FINANCE
-> Handleman Profits, Sales Up for First Quarter
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5666
Handleman Company, which distributes music to retailers Ames,
Bradlees, Kmart, Wal-Mart and Zellers, reported increased sales
and a net income figure that reverse a four year pattern of
first quarter losses.
Handleman is also fulfilling a portion of Amazon.com's music
orders on a pilot basis, and serves supermarkets, drugstores
and specialty chains.
In its first profitable first quarter since 1995, Handleman
recorded net income of $682,000, or $.02 per share, for the
first quarter of fiscal 2000 ended July 31, 1999. For the first
quarter of 1998, the company reported a net loss of $3.8
million, or $.12 per share.
Handleman's sales for the quarter stood at $226.4 million, up
from $189.6 million for the same period in 1998.
"The improvement in sales and income for the first quarter
reflects the successful implementation of our repositioning
plan," said Stephen Strome, president and CEO of Handleman.
Last year, Handleman reorganized its operations, shedding 160
clients that represented 5% of its business, including its
entire domestic video, book and software distribution
operations [see 6.4.98 Handleman Reworking Music Distribution;
Selling Off Book, Video Operations].
By restructuring, Handleman intensified its focus on servicing
both Kmart and Wal-Mart, which together accounted for about 60%
of Handleman's music distribution business prior to the
corporate overhaul. Those retailers now account for about
two-thirds of Handleman's business, according to Peter Cline,
president of Handleman Entertainment Resources.
Handleman's competitor Navarre Corporation, reported a net loss
of $2.6 million for the first fiscal quarter of 1999, as well
as net sales of $57.75 million [see 7.22.99 New Financial
Reports from Online Retailers, Media Companies and Portable
Device Makers].
In early 1997, Handleman contracted with music technology
company Intouch Group to supply Handleman's online and off-line
clients with custom-branded, interactive retail solutions,
including Intouch's i-Station kiosks [see 2.27.97 Handleman
Company to Supply Music via Internet]. Since that time, Intouch
has established a pilot program for Ames, according to Joshua
Kaplan, founder, president and CEO of Intouch.
Handleman maintains an investment in Intouch Group.
Currently, the in-store digital kiosk market is dominated by
Digital On-Demand, which has signed agreements to digitally
distribute music from Big Five labels EMI and Sony to music
retailers, including Trans World Entertainment, Virgin
Megastores and Wherehouse Music [see related items].
_______________________________________________________
in TECHNOLOGY
-> New Winamp Supports Audio Explosion
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5672
Gradually adding functionality that facilitates commercial
music downloads since America Online acquired it in June,
Nullsoft has added support in the latest version of its Winamp
MP3 software player for the proprietary Audio Explosion secure
MP3 music format.
Winamp's new functionality could result in a jump in activity
at San Francisco-based Audio Explosion's downloadable music
site, Mjuice.com. Mjuice markets downloadable independent label
music, including new releases, advance singles and promotional
content. The site distributes music from 40 label partners,
including DreamWorks, Ubiquity and Alternative Tentacles.
This week, Audio Explosion said it would distribute 60 tunes
from punk label Fat Wreck Chords. Founded by "Fat" Mike, lead
singer of popular punk act NOFX, Fat Wreck artists include
Lagwagon, No Use for a Name, Strung Out, Good Riddance, Tilt
and Sick of it All! Artists on Fat Wreck imprint Honest Don's
include the Muffs and Chixdiggit.
With an estimated 15 million active users, Winamp is the most
commonly used digital music software player, an efficient,
economically sized application for use with Microsoft's Windows
95, 98 and NT operating systems. In addition to MP3 and Audio
Explosion, Winamp may be used to play compact discs and
AudioSoft's proprietary music format. Winamp is available for
free download.
In June, America Online announced it had acquired Winamp
developer Nullsoft, along with Internet music webcaster
Spinner.com, in stock deals worth a combined $400 million [see
6.1.99 AOL Acquires Spinner.com, Developer of Winamp and
SHOUTcast].
Winamp first received notoriety for being the easiest way for
Internet music pirates to play song files traded on the
Internet. With AOL having acquired its developer, likely more
and more capabilities will be built into Winamp that will let
the player use secure proprietary music formats such as Audio
Explosion's.
"We're excited to add support for secure MP3s to Winamp," said
Justin Frankel, lead founder and developer of Winamp.
"Mjuice.com's level of security guarantees that song rights
will be protected, which is important for the consumer, artist
and music industry as digital music distribution becomes more
mainstream."
The recording industry's Secure Digital Music Initiative (SDMI)
has selected a "watermarking" security system from Cambridge,
Massachusetts-based ARIS Technologies as the security basis for
industry-approved downloadable music.
To obtain status as a SDMI-compliant music player, Winamp and
other digital music players will eventually have to add the
ability to decode ARIS Technologies' watermarks.
_______________________________________________________
in FINANCE
-> New Media Developer MediaX Closes $2M Funding Round
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5670
Music-related web site developer MediaX Corporation has closed
on a $2 million investment it hopes to use to expand into
various new media markets. MediaX has not released the name of
the New York-based institutional group involved in the
placement.
The company operates the amuZnet.com entertainment commerce
site, as well as official sites for Rod Stewart, J-Bird Records
and pop vocal group EYC.
MediaX intends to use the proceeds to fund capital needs,
according to Rainer Poertner, chairman of MediaX. The company
expects to close on additional funding in the near future,
Poertner said.
Founded in 1996, MediaX has established partnerships with
several online entities, including MP3.com, Artrock.com,
DealzDirect.com and Music Galaxy Network (MGN), an Internet
content aggregator and licensee run by former IUMA Chairman
David Kessel.
The MGN deal calls for the company to make available to MediaX
various audio, video and master film and TV recordings; MGN
will also acquire such content on an exclusive basis for MediaX
for various broadcast, interactive broadband and satellite
platforms. MediaX recently entered into an agreement with the
Echostar interactive satellite system to broadcast amuZnet.com
into 2.5 million homes.
MediaX's deals with MP3.com, Artrock.com and DealzDirect.com
let amuZnet.com link users to content on those sites, and share
revenue from MP3.com sales derived from amuZnet. AmuZnet.com
offers 265,000 CDs, daily news and reviews.
In addition to its online network, MediaX creates 3D CD-ROM
games.
S N I P P E T S & L A D D E R
_______________________________________________________
...Amazon.com has signed on another Big Five label interested
in promoting its artists at the online music retailer's free
digital download section. Beginning today, Warner Music will
make available songs from 10 artists, including Emmylou Harris
and Linda Ronstadt, Stereolab, Old 97s, Buena Vista Social
Club, Phil Collins' Big Band, Philip Glass and the Kronos
Quartet, Ibrahim Ferrer, Kris Kristofferson, Natalie Cole and
Genesis with Peter Gabriel. Available for download via both the
Liquid Audio and RealJukebox players, the tracks will be
released every Thursday through September, as promotions for
upcoming albums. In June, Amazon.com began offering
downloadable songs from BMG and Universal Music artists.
...The shareholders of Cafe Odyssey, which develops, owns and
operates casual-themed restaurants, have approved the merger
with PopMail.com, a provider of email services to radio
stations and their listeners. Announced in May, the merger also
enacts Cafe Odyssey's name change to PopMail.com. PopMail's
application enables users to retrieve email from any computer
with a web browser and Internet services, and is geared to
helping radio stations build listener databases and generate
repeat traffic to their web sites.
...MTV and sister Viacom unit Simon & Schuster Interactive will
collaborate on a five-year series of "Daria" CD-ROM and
Playstation entertainment titles. "Daria," which debuted in
March of 1997, is an animated TV-series documenting the life
changes of a bright but bitterly cynical high school student.
The first multimedia title, "Daria's Sick, Sad Life Planner,"
will ship in October. The day planner, which includes a
calendar/day planner, telephone and address directory, journal
interface, desktop themes and screen savers, was co-designed by
show writer, Peter Elwell, and developed by Hypnotix. Estimated
street price is $19.95. "Daria" airs Wednesday nights at 10:00
p.m. on MTV.
...Merging Rivers Media will produce the webcast of the ninth
annual Los Angeles Music Awards, scheduled for November 15 at
the Hollywood House of Blues. Merging Rivers will videotape,
digitize and compress the L.A. Music Awards and host it on the
Internet, accessible from a link on the L. A. Music Awards web
site.
...The Broadcastweb Network (TheBroadcastWeb.com) will launch
an online jazz outlet October 16, JazzManMusic.com. The site's
flagship webcast program, "KT's Cafe," is hosted by popular New
York radio personality K.T. Mills (WALK-FM). Mills will host
the weekly smooth jazz program, Saturdays, 9:00 p.m. ET. The
Broadcastweb Network hopes to compete with the likes of
Navarre's online media outlet, NetRadio.com. International
Internet develops and operates the network, as well as cigar
enthusiast sites StogiesOnline.com and StogiesAuction.com.
...The 1999 ASCAP/IAJE Duke Ellington Commissions partner
performing rights organization ASCAP with the International
Association of Jazz Educators (IAJE), to honor Baikida Carroll
of Woodstock, NY, the winner in the Established Composer
category, and Lisa DeSpain of New York City, the winner in the
Emerging Composer category. The program, now in its third year
(prior programs celebrated Dizzy Gillespie and Benny Carter)
awards cash prizes to an established jazz composer of
international prominence, and to an emerging jazz composer
under the age of 35, for commissioned works written for
ensembles of more than four and less than 18 pieces. The
winning works will debut January 2000, at the IAJE Annual
Conference in New Orleans.
...XM Satellite Radio has announced that New York on-air
personality, author and music historian Jonathan Schwartz is
joining the company's new XM Originals unit as artistic
coordinator of its American Standards format. Schwartz will
develop and host several hours of programming each day
exclusively for XM, including a daily reprise of his Frank
Sinatra Show, which airs on New York City's WNYC.
...Shockwave.com has appointed Stefanie Henning as vice
president of content acquisition and head of its new Los
Angeles-based office. Henning, co-founder and leader of ICM's
new media division for the past five years, joins shockwave.com
to establish a new system of development and distribution for
online interactive content and animation.
T O D A Y ' S W E B N O I Z E 8 . 9 . 1999
_______________________________________________________
We're impressed with the speed with which SDMI moved to establish
specifications for portable digital music devices and select the
watermarking technology it will use to tell consumers to upgrade
"phase one" devices to "phase two" devices.
Still, we can't help but think things might have moved even faster
had 4C Entity (the limited liability company formed composed of IBM,
Intel, Matsushita Electric and Toshiba) not taken so long beyond its
original June 16 goal to recommend its own choice of watermark
technology for DVD-Audio.
As avid consumers of both music and consumer electronics, we look
forward to seeing the new products due between now and the holiday
season. But while we're excited by the prospect of downloadable
music making long out-of-print deep catalog titles available, we
still haven't recovered from the economic blow of converting our
collection of vinyl LPs to CDs. The recording industry faces the
task of convincing consumers to convert their CD collections to
DVD-Audio discs.
N E W S H E A D L I N E S
_______________________________________________________
-> SDMI, 4C Select ARIS as Watermark Solution for Downloadable
Music, DVD-Audio
-> MCY.com Places Nearly $25M in Private Financing
-> Creative Intros 'Explosive' Internet Music App
-> New 'Net Payment Service Attracts Music Clients
-> Philips to Bundle MP3 Player With New RealJukebox Software
-> OnRadio Develops Alternative Format for Ad Program
-> MTV Adds Beatnik Soundtrack Music to Site
S N I P P E T S & L A D D E R
_______________________________________________________
-> Cornell MP3 Distributed Through Radio Station Sites
-> Maxnet Licensing Planet Tracks
-> J. River Releasing Secure MP3 Platform
-> DreamWorks to Offer Hybrid Discs
-> Billboard Talent Net Relaunches Store
-> Aussie Retailer Adding Downloads
-> Ladder: Nanocosm
S T A R T N E W S
_______________________________________________________
in INDUSTRY
-> SDMI, 4C Select ARIS as Watermark Solution for Downloadable
Music, DVD-Audio
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5499
The Secure Digital Music Initiative (SDMI) has selected audio
watermarking technology developed by ARIS Technologies, Inc. to
provide the security system for portable digital audio devices.
ARIS's watermarking solution will also be used as the security
behind the forthcoming DVD-Audio format for music.
SDMI's decision is subject to final approval of a definitive
licensing agreement at an upcoming meeting. No terms of the
proposed licensing agreement have been publicly released, but
ARIS Technologies President David Leibowitz said, "what we
tried to do was something that encourages the technology to
have as wide-spread usage for the benefit of SDMI and consumer
communities as possible, and terms will reflect that."
SDMI is a collaborative project established late last year by
U.S. and international recording industry trade associations
that involves about 110 music and technology companies working
to establish standards for industry-approved security for
digital music. The initiative reportedly evaluated
approximately 12 security technologies, including submissions
from IBM, Microsoft and start-ups Cognicity and Blue Spike.
Blue Spike would not comment on the decision; a spokesperson
for Cognicity said the company will continue to participate in
the SDMI.
According to SDMI, ARIS's technology was selected for
"robustness and listening quality."
"The selection of a screening technology is the final step
needed for manufacturers to complete their products," said
Leonardo Chiariglione, executive director of SDMI.
"The testing process proved to be time well spent," said Jack
Lacy, chair of SDMI's Portable Device Working Group, in a
statement. "SDMI participants were able to evaluate the various
proposals based on comprehensive, objective data."
Lacy expressed gratitude to the 4C Entity LLC (a company formed
by IBM, Intel, Matsushita and Toshiba) for help conducting the
tests. 4C was appointed by the DVD Forum and the "Working Group
Four" (WG-4) that defined the DVD-Audio 1.0 specification to
determine the security technology the format would employ.
According to a statement issued by the 4C Entity, it received
and evaluated several submissions of watermarking technology
and licensing terms for DVD Audio copy protection solutions. Of
those submissions, four were offered for use in SDMI.
4C Entity said it conducted evaluations of both the respective
technologies and respective licensing proposals. Tests
considered robustness, audio quality, "hackability" and factors
involved in implementing each solution.
Leibowitz said ARIS would make its solution available to
interested music and consumer electronics companies "as soon as
possible." A goal of SDMI has been to establish its technology
in time for device manufacturers to bring compatible products
to market by this year's holiday season.
Watermarks are data that may be encoded in digital music
without affecting its sound quality. Embedded data may be
copyright information, sales transaction records, or "usage
rules" that allow the file to be played under specific sets of
conditions.
In June, SDMI adopted standard specifications for portable
devices, publicly releasing its decisions in July [see 7.13.99
SDMI Publicly Releases Portable Audio Device Specs and 6.28.99
SDMI Establishes Portable Audio Specs].
SDMI-approved devices will use ARIS's technology for what SDMI
is calling a "Phase 1 screen" built into portable devices.
SDMI-approved portable devices may be switched by a consumer
from a "phase one" operating mode to a "phase two" operating
mode. In phase one, an SDMI-approved device will play any sort
of audio file, whether security protected or not. In order to
use the device to play SDMI-approved music files, the consumer
will have to use the Internet to permanently "switch" their
device to a phase two operating mode.
A phase two device will play secured, watermarked digital music
offered by SDMI-supporting content producers, including
potentially the Big Five major labels (EMI, Sony, Warner Music
Group, Universal Music Group and BMG), who collectively control
over 80% of the total music market.
The ARIS watermarking technology will be used to indicate when
the software used by Phase I portable devices should be
upgraded to incorporate new Phase II technology that will
accept new music releases as well as filter out pirated copies
of music.
While this is the only function for which SDMI has officially
selected ARIS Technologies, it is likely SDMI will continue to
use the solution for other purposes, particularly if 4C uses
ARIS for all relevant DVD-Audio functions.
In June, ARIS announced it would merge with competitor Solana
Technology Development Corporation [see 6.16.99 ARIS and Solana
Merge, Gain Finalist Status with 4C]. The companies' decision
to combine operations and intellectual property portfolios
followed notification by 4C that their respective solutions
were under consideration as standards for DVD-Audio. According
to ARIS, the merger will close "in the immediate future."
_______________________________________________________
in FINANCE
-> MCY.com Places Nearly $25M in Private Financing
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5500
MCY.com, Inc., which last week competed its name change from
Health Builders International, has closed a $24.8 million round
of privately placed equity financing. The company sold more
than 4 million shares of its common stock at $6.00 per share,
and realized net proceeds of approximately $22.6 million after
costs and expenses.
The company will use the proceeds for the content development,
marketing and online retailing operations of its MCY Music
World subsidiary in the U.S. and Europe.
Formed in the beginning of this year, MCY Music World operates
the MCY.com web site, from which wired music consumers may
preview, purchase and download music in the company's
proprietary NETrax format, which is an encrypted version of the
popular MP3 open standard audio format [see 1.22.99 MCY Taking
Wraps Off Secure Music Delivery System].
The equity placement was led by New York-based Gruntal & Co., a
full-service brokerage and investment banking firm. Other
investors include Gontard & MetallBank AG, Knorr Capital
Partner AG and Lehner Venture Capital Fund.
Last week, MCY acquired the digital distribution rights to
Drive Entertainment's music catalog, which includes more than
1,800 songs by artists such as Ray Charles, Ella Fitzgerald,
Benny Goodman, John Lee Hooker, Waylon Jennings, Frank Sinatra
and Sarah Vaughan.
A competitor for downloadable music companies such as a2b
music, Audio Explosion and Liquid Audio, MCY.com offers songs
in the NETrax format for sale for between $0.99 and $1.99 per
track.
_______________________________________________________
in MIX
-> Creative Intros 'Explosive' Internet Music App
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5488
Creative Technology Ltd. today introduced its newest multimedia
entertainment product, an application that helps artists
visually enhance music on the Internet.
Using a proprietary technology Creative calls Live Audio Visual
Animation (LAVA!), musicians can customize images in
interactive three-dimensional scenes that react and respond to
specific audio cues in real-time. LAVA! lets artists provide
video footage, interactive band logos, album art and photos so
that their fans may experience new types of music videos,
according to Creative.
Creative has launched a web site that lets users of its Sound
Blaster Live! sound cards download LAVA! for free. A
stand-alone, sound card independent LAVA! player will be
available later this year, according to Creative.
The LAVA! web site features videos in the classical, jazz, new
age, pop, techno and world beat genres. In order to view the
content, however, wired music fans must join the LAVA! Online
Community.
Among the first companies using LAVA! to enhance MP3 songs
available on the Internet are downloadable music services
EMusic.com and Epitonic.com. Epitonic.com artists offering
LAVA-enhanced music include DJ Abstrakt, Jondi and Spesh, and
the Infinite Posse.
"Delivering music and graphics directly to the individual
listener is an example of how the online music industry is
speeding past the offline industry and becoming its own
animal," said Aaron Newton, president and founder of
Epitonic.com, which launched its service earlier this year [see
3.10.99 MP3 Site Launches as Part of Cybergold Ecommerce
Community].
The LAVA! tracks are another part of Epitonic.com's efforts to
raise its profile in an increasingly competitive market. Last
month, the company introduced Radio Epitronica, a streaming
electronica music program served off the Live365.com web site,
where users may download the tracks as they are being webcast
[see 7.20.99 Live365.com Streaming MP3 Audio for Epitonic,
LA2nite].
For Creative, LAVA! technology is part of a strategy to cover
as many music and audio bases as possible.
Last month, the company officially rolled out a portable
digital audio device, Nomad. Unveiled in March, the solid-state
player comes in both 32MB and 64MB versions, and includes voice
recording, an FM tuner, an LCD screen with scrolling text for
artist name and song title, desktop docking stations and
support for the MP3 audio format [see related items].
"The Nomad MP3 player marked our entry into the MP3
revolution," said Mike Barnes, Internet marketing manager for
Creative Labs. "Our introduction of LAVA! serves as an
extension of our Internet music efforts."
In June, the company agreed to provide broadband modem
solutions to both Lucent Technologies and Centillium that will
enable consumers to access and enhance MP3 files, network
gaming, video streaming and other Internet content.
_______________________________________________________
in MARKETPLACE
-> New 'Net Payment Service Attracts Music Clients
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5498
Hoping to combine the ease of ATM card use with the instant
buying power of the World Wide Web, iPIN today unveiled a
web-based payment system the company said lets digital music
providers sell downloadable content with transactions conducted
through Internet service providers (ISPs).
Slated to launch in autumn, the iPIN system frees consumers
from using credit cards for online purchases, instead linking
with ISPs to add charges for digital content to consumers'
monthly ISP bills. The company is negotiating with ISPs in
advance of the launch, and recently conducted beta trials with
five ISPs in the U.S. and Europe, including AT&T Worldnet and
Demon, and 25 content providers, including BBC and Warner Bros.
Consumers who sign up for iPIN through their ISP establish an
account and choose an iPIN number. Then, when purchasing
content from ecommerce providers linked to the iPIN system,
consumers need only enter the iPIN number for what iPIN calls a
"virtually instantaneous" transaction.
ISPs share with iPIN a small percentage of each transaction.
Content providers and ISPs entering into agreements with iPIN
are provided free software from the company.
"Consumers want fast and easy access to content, without the
hassle of credit cards and lengthy registration processes,"
said Bradley Rode, chief executive officer of iPIN.
iPIN has established relationships with several Internet music
services that intend to integrate iPIN into its online retail
services, including Audio Explosion, a2b music, BuyMP3.com,
CDuctive, EMusic.com, Netbeat and Virgin Radio.
Gene Hoffman, president and CEO of EMusic.com, said his company
signed on with iPIN "because teens and college students are
core EMusic.com consumers, [and] we need an easy and secure way
for them to buy our downloadable music -- even if they don't
have credit cards."
iPIN and its partners hope to eliminate barriers between
consumers and the digital content they wish to purchase, Rode
said. By letting consumers make online purchases through ISPs,
iPIN believes it can help consumers overcome reluctance to
conduct ecommerce transactions.
_______________________________________________________
in TECHNOLOGY
-> Philips to Bundle MP3 Player With New RealJukebox Software
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5502
Philips Electronics will next year introduce to market a
solid-state audio player capable of playing MP3 files and other
audio formats.
The yet-to-be-named device will use a flash memory card capable
to store about one hour of digital music, according to Philips.
Although Philips' player will be among many such devices on the
consumer market by early 2000, the company's status as a global
leader in the consumer electronics industry is likely to
provide the company with a market advantage.
Other companies that have introduced similar solid-state
products since late last year include Diamond Multimedia
Systems, Creative Technology, Thomson Multimedia (RCA) and
Samsung [see related items].
As a member of the Secure Digital Music Initiative (SDMI),
Philips has pledged that its player will be compliant with that
group's specifications for portable audio devices, which were
announced in late June [6.28.99 SDMI Releases Portable Audio
Specs].
SDMI-approved portable devices may be switched by a consumer
from a "phase one" operating mode to a "phase two" operating
mode. In phase one, an SDMI-approved device will play any sort
of audio file, whether security protected or not. In order to
use the device to play SDMI-approved music files, the consumer
will have to use the Internet to permanently "switch" their
device to a phase two operating mode.
SDMI-approved portable devices may be switched by a consumer
from a "phase one" operating mode to a "phase two" operating
mode. In phase one, an SDMI-approved device will play any sort
of audio file, whether security protected or not. In order to
use the device to play SDMI-approved music files, the consumer
will have to use the Internet to permanently "switch" their
device to a phase two operating mode.
A phase two device will play secured, watermarked digital music
offered by SDMI-supporting content producers, including
potentially the Big Five major labels (EMI, Sony, Warner Music
Group, Universal Music Group and BMG), who collectively control
over 80% of the total music market.
With SDMI's phase one proposal for portable audio players
having been released, Philips intends to offer "solid state
products that ensure that all MP3 files -- future and existing
-- can be downloaded in our players," said Guy Demuynck,
president of Philips Audio.
The device will integrate support for RealNetworks' music
management software, RealJukebox, allowing users to transfer
songs and playlists to the Philips unit from the Web or their
CD collections, according to Alex Alben, vice president, music
group, for RealNetworks.
Today, RealNetworks released beta versions of RealJukebox --
RealJukebox Plus and RealJukebox Beta 2 -- both of which
integrate drag-and-drop support for Diamond's Rio and RCA's
Lyra, and eventually, Creative's Nomad; the jukebox application
lets users create, download, play and manage digital music file
collections.
Introduced in May, RealJukebox operates independently of
RealNetworks' G2 streaming software to digitally record CD
music as MP3 files and proprietary RealAudio G2 files [see
5.03.99 RealNetworks Stakes Its Claim In Downloadable Music
Market]. Since its release, RealJukebox has been downloaded by
more than seven million users, according to RealNetworks.
RealJukebox Plus, which includes a 10-band graphic equalizer
and new music management features, is available for download
for $29.99 from the RealJukebox web site.
_______________________________________________________
in MARKETPLACE
-> OnRadio Develops Alternative Format for Ad Program
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5493
OnRadio, an online network of radio station web sites and
entertainment portals, has introduced an alternative music
format for one of its Internet advertising outlets, miniature
web sites with interactive features called OnTracks.
OnRadio markets OnTracks advertising to record companies and
national advertisers. OnTracks are "microsites" that promote
new albums and artists, accessible through SPIN.com and
alternative format radio station web sites within the OnRadio
network.
OnTracks ads encourage Internet users to click through to audio
and video clips of artists, music news and ecommerce links.
RCA Records and Beyond Music are participating in the August 10
launch, showcasing the Verve Pipe, Vertical Horizon and Face to
Face. Campaigns are being prepared that highlight artists Guano
Apes, Bif Naked and Michael Fredo.
OnRadio advertisers can sponsor OnTracks microsites, individual
content pages or commerce buttons, banner ads and on-air spots
with local affiliate radio stations. OnRadio sells the
different advertising outlets as a complete, integrated
campaign.
Onradio.com, formerly known as ElectricVillage, bills itself as
the largest Internet radio network, marketing services that
extend the relationship between radio stations and audiences,
and establish new revenue streams.
The company has strategic partnerships with Microsoft, InterVU
and Vibe/SPIN Ventures.
_______________________________________________________
in MARKETPLACE
-> MTV Adds Beatnik Soundtrack Music to Site
To access links and related news:
http://news.webnoize.com/cgi-bin/n/item.rq?ID=5494
MTV Networks has added soundtrack music to MTV.com, developed
and delivered using the proprietary digital streaming platform
from Beatnik, Inc. MTV is calling the new web site feature,
"MTV S-Track."
S-Tracks are original electronica, hip-hop, ambient and pop
songs played as one enters different sections of the MTV.com
site. Users can select songs from a play list and play DJ by
varying sounds, instrumentation, tempo and key.
Fred Seibert, president of MTV Networks Online, said MTV is
working with "some of the best known talent in the business" to
develop original soundtrack music for MTV.com.
Artists currently involved include DJ Scratch (EPMD, Busta
Rhymes), DMX producer Dame Grease, Beastie Boys remix master
Shawn J. Period, and Wu-Tang Clan producer Arabian Knight.
The new feature at MTV.com comes as the Internet world
anticipates the launch of MTV's latest online project,
code-named The Buggles Project. Slated for launch this summer,
the web site is expected to cater to fans of all music genres,
including rock, pop, rap, jazz, country and classical [see
2.24.99 MTV Networks Planning New Music Site].
Concurrent with its announcement for its upcoming Internet
venture, MTV announced its acquisition of Internet music
service Imagine Radio. More recently, MTV acquired a stake in
RioPort, the downloadable music portal division of Diamond
Multimedia Systems [see 7.20.99 MTV Online Taking Stake in
RioPort]. In addition, MTV and RioPort entered into an
agreement that calls for the partners to share revenues from
the sales of downloadable music at the Internet portal.
Among clients to whom Silicon Valley-based Beatnik (formerly
Headspace) has licensed its audio engine and music are
Microsoft/WebTV, Sun Microsystems, Netscape, Oracle/NCI and
Intel. Beatnik's proprietary platform-independent audio was
developed by '80s hitmaker Thomas Dolby Robertson ("She Blinded
Me With Science").
S N I P P E T S & L A D D E R
_______________________________________________________
...Former Soundgarden frontman Chris Cornell is distributing a
free single in MP3 format, through about 30 radio station web
sites, as well as his own official site, ChrisCornell.com. The
single, "Can't Change Me," is from the singer/guitarist's first
solo album, Euphorial Morning (A&M Records/Interscope),
shipping September 21.
...Music and video distribution and production company Planet
Entertainment has sold non-exclusive rights for 2,500 of its
master recordings to Internet development company Maxnet for
$1.6 million of Maxnet's common stock. Maxnet intends to make
digitally downloadable versions of the tracks available for
purchase at its MaxPlanet Radio web site (MaxPlanet.com), which
the company jointly operates with Planet Entertainment.
...J. River will today release Music Exchange, a software
system for licensing and purchasing MP3 music on the Internet.
The Music Exchange format encodes audio, cover art, liner
notes, video and links to the Web. The format also supports
free promotional tracks that encourage and let a user purchase
full access to music and other features, online. In
mid-September, the company plans to launch a downloadable music
site, Music01.com.
...DreamWorks Records Nashville will produce certain upcoming
CDs using convergence technology from CDKnet. The technology,
CDK 2.0, will allow the label to provide consumers with CDs
that contain full-screen, full-motion music videos, Red Book
audio and links to the Web. The first artist from DreamWorks
Nashville to release such a disc will be Lisa Angelle, who has
written songs for country artists such as Wynonna Judd. CDKnet
has also provided its technology to Atlantic Records and
several independent labels.
...Billboard Talent Net has relaunched the retail area of its
Internet showcase area for new and developing music artists
(www.talentstore.com). The store provides three areas -- CD
Sales, Custom CDs and Music Downloads -- from which artists may
sell their music directly to consumers around the globe.
Billboard's partners for the ecommerce venture are Global New
Media, Custom Revolutions and Deutsche Telekom-owned Music On
Demand (MOD). Artists retain publishing rights and ownership of
all recordings offered for sale at the site, and earn 60% of
the retail price for items sold.
...Australia-based online music retailer ChaosMusic will use
Microsoft's Windows Media Technologies to expand the amount of
downloadable music offered at its web site
(www.chaosmusic.com). Microsoft will launch the consumer
version of its Windows Media 4.0 in Australia later this year.
ChaosMusic and Microsoft have also agreed to cross-market and
promote each other's online properties, as well as streaming
audio and video events. Last month, Microsoft joined ChaosMusic
and other parties in forming the Australian Digital Music
Association, a trade group that will focus on protecting and
selling music over the Internet.
...Nanocosm, operator of streaming music service Live365.com,
has tapped Michele Hickford as its chief marketing officer, and
John Jeffrey as general counsel. Formerly vice president of
marketing at Autoweb, Hickford will work with Nanocosm's
strategic marketing and business planning efforts. Jeffrey was
most recently director and senior counsel of legal affairs at
Discovery Communications. He will oversee all of Nanocosm's
legal and business affairs, and will initially focus on
strategic partnerships and investment relationships.
Views
Claude 2 Analysis: Webnoize Newsletter Pseudo-archive from 1999-2000
https://www.abovo.co/seanfenlon@gmail.com/54113
Act as the world's leading digital music historian and scholar. Analyze this post and archive in long-form comprehensive detail:
SPF
Claude.ai 2:
Here is a comprehensive analysis of the music industry news post archive:
Overview
This archive contains news posts from the music and technology industry in 1999, spanning from January to September. It provides a fascinating look into the state of the music business 20+ years ago, during the early days of the internet and online music distribution. Some key themes and takeaways:
Key events covered include the high-profile IPOs of MP3.com and EMusic, the merger of Sony and Warner's online music operations into Columbia House, AOL's acquisition of Spinner and Nullsoft, the birth of services like Riffage and Listen.com, and much more.
Overall, the posts illustrate the uncertainty but also the sense of possibility that existed around online music in 1999. They highlight the heated competition and "gold rush" mentality of internet startups trying to stake their claim. And they showcase how traditional music companies were grappling with digital disruption. For any music and technology historian, this archive captures a pivotal transitional moment.
From: Sean P. Fenlon <seanfenlon@gmail.com>
Sent: Friday, April 27, 2018 6:26 PM
To: post@abovo42.com
Subject: Webnoize Newsletter Pseudo-archive from 1999-2000
My first startup was www.ListenSmart.com – founded in 1999 and launched in March 2000 (yeah, pretty much the worst possible timing for a dot-com launch. :-S)
I was completing my Doctorate in Music at the time, but I knew nothing about the music business beyond what I had read in books and nobody knew much about the emerging digital media space.
My greatest source of knowledge and education was the famous “Pho” email list managed by the legendary tech-media visionary and ListenSmart.com board member Jim Griffin: http://www.onehouse.com/pho.htm
My second greatest source of knowledge and education was via Webnoize – a web publication/newsletter and tradeshow that was at the epicenter of online music until 1) the dot com collapse and 2) the Napster-effect, which froze/paralyzed the online music space. Webnoize shut down in 2002: https://www.cnet.com/news/webnoize-quietly-suspends-its-operations/
I was going through my old backup storage files and came across a compilation of the Webnoize newsletters which I believe have been lost in the digital ether. Thus, I’m posting them here on Abovo to be archived online forever.
Some names/terms/concepts I haven’t even though about for years:
SDMI
Liquid Audio
Sony MiniDiscs
Winamp
RioPort
CDnow
ArtistDirect IPO
And the list goes on and on. :-)
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