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Strategies & Market Trends : Rande Is . . . HOME

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To: dowen who wrote (6155)5/3/1999 10:16:00 AM
From: Rande Is  Read Replies (1) of 57584
 
Dowen, thanks so much for your honest appraisal of MP3. Remember Sony owns one of the world's largest record companies. . . used to be CBS/Columbia records. . .now Sony. A move toward MP3 would be shooting themselves in the foot.

My feeling is that Diamond Multimedia will one day be the subject of a hostile takeover. . .and when the smoke clears, it will be Seagrams or Sony that bought them. . . to control the MP3 player. . .but there would need to be a simulataneous buyout of the MP3 company as well. . . .I would not be surprised if such a coup is in the works. . .this is big money we are talking about. . .

Manufacturers don't want to tick off record companies. MP3 is a hot subject and the reason that stores are not flooded with MP3 players already is the controversy. The record industry is lobbying heavily in D.C. and has formed many collective groups to attack it from a legal perspective. We may likewise one day see it outlawed.

I guess what I am saying is that it is no small war. . . the record industry has waged MAJOR war against everything MP3 related. When the first of the cease and desist orders are handed down from the U.S. Treasury Dept to a major university the media coverage alone will make big changes. Nothing will get people to stop using what they have, but by letting people know that laws are being broken and that offenders will be prosecuted in federal court. . .that is enough to at least get a handle on it.

But I think that timing is everything. . .the record industry will not take drastic action until they know they have the full support of the Feds, the manufacturers and that their legal system is ready to handle what is necessary. Being so widespread, it is like a nationwide attack on mosquitos. Not an easy thing to do.

It will be done. . . just takes lots of planning.

Rande Is
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