interesting article, fwiw
                                      Source: Angry Coffee                              angrycoffee.com
                      Liquid Audio Player 5.0 Preview (May 18, 2000)
                      I have to confess that I'm a little surprised. After all this time,                     among all the names in the music downloading derby, I didn't                     expect that the Liquid Audio 5.0 beta would make as much                     sense as it does. It wasn't that long ago that Liquid Audio was                     trying to sell servers to record companies and its software didn't                     support mp3-compressed files. After a resounding, "buh?" from                     the music world, a year or so ago Liquid steered their boat into a                     digital music service that is at least making an attempt to be                     neutral -- and perhaps most importantly they're trying to make a                     technology that provides useful e-commerce answers for people                     who put music on the Net.
                      So let's take a look at the player first. And then we'll get into                     the really geeky stuff: retail. 
                      Simply put, if you download the Liquid Player 5.0 Preview, you                     should be able to open all kinds of music files and listen to them                     from that player and you won't be stealing from anybody. The                     big idea is that Liquid will be interoperable in two important                     ways. It will eventually support all sorts of codecs -- including                     mp3, Windows Media, in addition to Dolby Digital AC-3 and AAC;                     and the company will support a whole end-to-end digital music                     distribution system. It's the neutrality horse in an exceedingly                     wacky horserace, and it's in the lead...It's only the far-turn,                     mind you, but it's in the lead.
                      If downloadable digital music evolves into a real industry and                     consumers get used to buying music online, the latest Liquid                     player has some compelling features. The tracklist lets you                     arrange lists of Liquid files and mp3 files niftily. And yes, Liquid's                     done a deal so that there's a plug-in dowloadable from the                     RealNetworks site for the G2. There are also clever ways of                     downloading artwork and album notes and the like. By far the                     most handy is the fact that you can give the files real names                     that make sense to you instead of the bizarre filenames affixed                     to the files when you downloaded them. 
                      Besides the latest iteration's little extras like keeping your files                     organized, you will also be able to save Liquid files on a bunch of                     hardware devices. You can already download music to your                     portable mp3 player, but Liquid has a pretty good idea of an                     easy way for you to pay for it, too, and the industry as a whole                     is eager to distribute music and keep track of it. Whatever you                     think of distributed music networks, like Napster and Gnutella                     and the like, the technology behind Liquid Audio's strategic                     position within the heavily-consolidated music industry is                     actually pretty novel. 
                      If you have never been a big fan of digital certificates (or you've                     been utterly baffled by them, for that matter), Liquid Player has                     a one user, one machine deal that is pretty easy. If you choose                     the lightweight "FastTrack Security" option, Liquid binds one                     song to one machine; if you download a bunch of music on a                     bunch of different machines, you can use their "Passport"                     option. I suppose the Passport will allow you to buy music on                     your mp3 belt device at the mall, on your PC at work, and on                     your machine at home, and all the while organize your playlists                     no matter in what formats or codecs the music comes in. 
                      I'm guessing the goal is that some day in the future we'll look                     back on these crazy, mixed-up days and shake our heads with                     mirth at how retail music was distributed -- kind of the same                     way we feel when we watch old film of telephone operators on                     rollerskates plugging and unplugging phone exchanges. Hey,                     don't laugh. At the time, the rollerskates were a damn fine                     strategy. 
                      Behind the scenes, and very rapidly, a bunch of companies have                     developed a bunch of ways to protect security for upcoming                     digital music distribution. There are companies that provide                     something called Digital Rights Management, or DRMs, who are                     roughly analogous to current publishing rights organizations like                     BMI or ASCAP. These companies (InterTrust is one) report to                     other companies called Clearinghouses Reciprical is one), who --                     yeah, I know -- act as clearinghouses, keeping track of all the                     songs that are sold and making sure everybody gets paid.
                      Liquid Audio seems to be in a smart spot. Liquid has positioned                     themselves in such a way that they provide a good way for                     people to buy music, and they provide an overall service to the                     record companies and retailers, neither of whom want to deal                     with some potentially painful and costly e-commerce logistics.                     Liquid will integrate the alphabet soup of the DRMs and the                     clearinghouses in this future digital music space -- and                     remember: it is alphabet soup to a big and important chunk of                     folks in the music industry. 
                      There's been a lot written (rightly so) about the moral and legal                     issues around the commerce side of digital music distribution.                     But another thing that could be slowing online music distribution                     could really be boring old logistics. Keeping track of song                     downloads is complicated, it's complicated for consumers and it's                     complicated for record companies. In a strictly logistical sense,                     piracy is simple; there's no paper trail of publishing royalties or                     mechanicals and whatnot for songwriters or record companies or                     publishers to keep track of; you aren't paying anybody, so you                     can pretty much toss the spreadsheets of who wrote what...and                     by the way what's the current mailing address for your third                     drummer, again? By focusing on the logistical problems in the                     digital music space race, Liquid Audio's back-end strategy as it's                     executed in the company's new player might just give it the                     lead.  |