MSFT and Cirrus Logic. Jeff
quote.bloomberg.com
Technology News
Mon, 27 Sep 1999, 8:38am EDT
Microsoft, Cirrus Unveil Technology for Machines to Play Downloaded Music
By David Ward
Redmond, Washington, Sept. 27 (Bloomberg) -- Microsoft
Corp., the world's largest software maker, said Cirrus Logic Inc.
will unveil a new audio chip next month designed to work with
Microsoft software in portable music devices, a bid to grab a
bigger share of the fast-growing online music business.
The companies are seeking to compete in the burgeoning
business of selling music online by developing the next line of
portable devices that can download and play music from the
Internet. Estimates of the growth potential in that market vary,
from $147 million to $1.1 billion by 2003.
``We aim to capture a significant percentage of the Internet
audio device installed base in the next 12 months,' said Matthew
Perry, general manager of Cirrus's imbedded processor division.
Microsoft in April launched its MS Audio software, which
competes with RealNetworks Inc. in market for software that lets
people download and play music from the Internet.
Microsoft and Cirrus, the largest supplier of audio computer
chips, said the new chips and software will be used in portable
audio devices that will be on store shelves in time for the
holiday season.
MP3.com Inc. is pioneering the distribution of music over
the Internet. The company has created a Web site that lets people
download CD-quality music, often for free, from a library of over
100,000 songs from more than 18,000 artists.
MP3 is a technological format for compressing huge data
files, like songs, into manageable chunks that can be transmitted
over computer networks. MP3.com shares are up almost 60 percent
from its initial public offering price as investors bet that
consumers will increasingly buy music that can be directly
downloaded from the Web rather than by purchasing compact discs.
Sony Corp., a consumer-electronics giant and one of the
world's five biggest music companies, on Friday unveiled a
portable music device that plays the music found on MP3.com's Web
site. The company has also said it will distribute music and
videos over the Internet with Microsoft.
Diamond Multimedia Systems Inc. introduced the first
portable audio player, the Rio, in 1998, and has sold more than
250,000 units, Hambrecht & Quist Inc. estimates.
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