To: DiViT who wrote (42407 ) 6/25/1999 1:38:00 AM From: BillyG Respond to of 50808
Combination MP3-CD Players Are On The Waytechweb.com (06/24/99, 7:32 p.m. ET) By Malcolm Maclachlan, TechWeb A number of small companies are working to bring downloadable music into the mainstream with devices that can play both CDs and MP3s. Vertical Horizon, a 20-person company based in Los Angeles, has said it is working on what it hopes will be the first such device available in portable form in the United States. The as-yet unnamed device should debut later this year, said Tay Yoo, marketing manager of Vertical Horizon. The company has already made a non-portable version. "CDs will eventually become obsolete and music will be downloaded from the Internet," Yoo said. "In the meantime, people will want to play both." The technology is based on a specialized chip the company has devised that lets a player read MP3 files off a CD, Yoo said. MP3 is a popular digital download format for music. In the past, when people wanted to listen to MP3s somewhere besides their PCs, they had one of two choices. They could buy an MP3 only, flash-memory device, such as Diamond Multimedia's Rio. Alternatively, they could change their MP3 files to WAV files, readable by a CD player, and burn them onto a CD. This first approach is inconvenient for users who already have a large investment in CDs, Yoo said. But changing MP3s in WAV files sacrifices quality, he added. Users will now be able to burn MP3 files directly onto a CD, then listen to these burned CDs and standard CDs interchangeably. Vertical Horizon is hoping to carve out a niche based on the market transition from CDs to digital downloads, Yoo said. Vertical Horizon has also developed a portable MP3 player based on flash memory, like Diamond's Rio, but has no plans yet to sell a device capable of playing both from CDs and flash memory. Yoo said that it expects to be able to sell both devices for about $100 each. Their are numerous possible competitors for Vertical. These include Oscar, a company run by two college students in Germany, as well as South Korean company Synos Tech. Each is working on hybrid CD-MP3 devices. Such devices could be an important bridge for bringing novice users over to the MP3 format, said Laurent Meynier, an industry analyst with WR Hambrecht & Co. Recordable CDs will also lets MP3 users carry around a lot more music, he said. "You're no longer limited to the 96 megs that you get on a Rio," Meynier said. "You get 600 megs of CD." The company is seeking funding to bring the device to market, Yoo said. Small MP3-player companies should have a much easier time getting funding, Meynier said, after a federal judge last week rejected the Recording Industry Association of America's attempt the block the sale of Diamond's Rio. The RIAA said the Rio was a recording device, used mostly for music piracy. For more than two years, the industry group has been carrying out a campaign to shut down sites that distribute illegal MP3s.