TTRE Will Survive, With or Without Napster
FROM THE TTR TECHNOLOGIES INC.
Third Quarter 2000 Conference Call
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KG: Okay. Also, could you comment, , with Bertelsmann-Napster apparently reaching some sort of agreement and Bertelsmann giving Napster $50 million to go out and try to develop a peer-to-peer music marketplace in conjunction with the music industry. What does that mean to TTR and what are TTR and Macrovision doing? Do you see the music industry moving more rapidly into the peer-to-peer market or do you see them slow to move and thus it still provides a good opportunity in the CD-ROM marketplace?
MT: Firstly, it's very encouraging for us because it means that BMG, which is one of the five major labels, is concerned about piracy. That's why they made a deal with Napster, which is good for us.
Secondly, I guess to paraphrase what you're asking, what effect will this have on CD sales? If we look at CD sales over the past two years, when illegal downloading of music has become rampant what we see is not a decrease in CD sales, but actually an increase. CD sales are at an all-time high.
All indications in the music industry are that CDs are not going away. So, we're looking to a number of good years of CD sales, being replaced eventually by DVD.
KG: Okay. Thanks.
MT: You're welcome.
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