You have done a lot better than I have with my investment in EMUS. However, I remain a believer, even though I am underwater.
Most investors have underestimated the power of U.S. Copyright laws when looking at companies that are in the downloadable music space. Companies like MPPP and Napster face huge liabilities for violations of the copyright laws. EMUS, on the other hand, is run straight up and clean as a whistle on this "fine point," which is a credit or plus in their favor. Bob Kohn wrote the book on copyright law as applied to the music and entertainment industry. So, EMUS knows "how to do it right," and there is no risk of them getting shut down or clobbered with a huge damage award because of copyright violations.
I am sure you saw the following from the WSJ today, 5-15-2000:
"More than 70% of college students surveyed by an Internet research firm use the controversial Napster Inc. music Web service at least once a month, a finding likely to reinforce fears in the music industry about the service which is widely used for downloading of pirated music.
But the survey, by Cambridge, Mass., concern Webnoize Inc., to be published in full next month, also had some good news for the record industry. A majority of those who said they had used Napster said they would be willing to pay $15 a month to use the service, suggesting that subscription music services may be popular, Webnoize analyst Ric Dube said. Some record companies are planning subscription music services that will likely offer varying quantities of music for a flat monthly fee."
Napster, at least in it's present form, will probably not be around too long because of copyright law considerations. I look for EMUS to offer a subscription based service before too long. This is a logical move...like cable TV, or internet service, etc. New music, anytime, anywhere...
I also look for EMUS to emerge as the survivor in the space, and for eventual merger with a larger entity. The internet is not going away, nor is digital acquisition of music. |
