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To: Jeffrey D who wrote (6348)	7/6/1999 8:47:00 PM
From: Dave Swanson	Respond to of 18366

Jeffrey D-- Another point of view! FILLED WITH ANTICIPATION..................... Subj: Frost & Sullivan: Audio Companies Filled with... Date: 7/6/99 4:59:55 AM Pacific Daylight Time From: AOL News BCC: DSwan74017 Frost & Sullivan: Audio Companies Filled with Anticipation as the Internet Audio Market Expects Explosive Revenue Forecasts MOUNTAIN VIEW, Calif., July 6 /PRNewswire/ -- A new addition to the Internet market has musicians and distributors all over the world on the edge of their seats. The Internet audio market is currently in the infancy stages but is quickly becoming a booming market which advertisers and investors will be anxious to sink their teeth into. According to research conducted by Frost & Sullivan (www.frost.com) The World Internet Audio Market generated revenues totaling $42 million in 1998, which dwarfs the 1997 revenues by an astounding 1,516 percent. This market is predicted to continue growing at a healthy rate, achieving an increase into the triple digits by 1999. The primary drivers behind the popularity of this booming market include the flexibility that it gives users to compile the music they prefer, its accessibility through the Internet and the ability of unsigned artists to publish their music over the Internet, thus attracting a worldwide audience. Unfortunately, there are some restraints that market participants must address, such as the proliferation of illegal distribution limits the availability of compelling content, the availability of numerous formats leading to end-user confusion and the high cost of ownership which will lead to lower usage. The market for Internet audio products has become increasingly more competitive, forcing companies to form strategic alliances, enabling them to provide a more complete solution. Technological trends that drive the growth of this market include the high bandwidth technologies, the increase in PC ownership, interoperability with available formats and the incorporation of security and digital rights management systems. In 1998, only 22 active participants existed in the world Internet audio industry. In 1999, large multinational corporations are expected to release Internet audio distribution products. These companies have the marketing and distribution channel resources to make a competitive impact in the Internet audio industry. As a result, smaller market participants will need to form alliances with retailers and other technology companies in order to remain competitive. The world Internet audio market is growing at a phenomenal pace. "Major record companies and technology firms have seen the window of opportunity for the distribution of music and other audio files. With the further development of current technologies, the world Internet audio market is poised for tremendous growth throughout 2005," says Frost & Sullivan Analyst Generosa Litton. Participants in this market include: a2b music, Audible Inc, Audio Explosion, audiohighway.com, AudioSoft Inc., Atomic Pop, Beatnik Inc., Casio Inc., Creative Labs Inc., Diamond Multimedia Systems Inc., Eiger Labs Inc., Empeg Ltd., Forefront Fraunhofer Institut fur Integrierte Schaltungen, GMN.com, GoodNoise Corporation, HyCD Inc., IBM Media Center, InfinityEdge Systems Gbr, J. River Inc., LAUNCH Media Inc., LG Electronics Inc., Liquid Audio Inc., Lucent Technologies Inc., MacPower Peripherals Ltd., Macromedia Incorporated, Matsushita Electric Industrial Co. Ltd., Microsoft Corporation, Morton Software, mp3.com Inc., MpegTV/Xaudio, Musicmaker.com Inc., MusicMatch Inc., Night 55 Inc., Null Soft Inc., Philips North America, PlayMedia Systems Inc., PONTIS MeBtechnik GmbH, RealNetworks Inc., Rollingstone.com, Saehan Information Systems Inc., Samsung Electronics America Inc., Sensory Science Corporation, Sonic Foundry Inc., Sony Corporation of America, Telos Systems, Thomson Consumer Electronics Inc., Voquette Networks, Xing Technology Corporation, ZipLabs Pte. Ltd. Frost & Sullivan presents Market Engineering Awards to companies that have made a positive contribution to the Internet audio market. The 1998 Market Engineering Product Innovation Award goes to MusicMatch Inc. for providing superior quality and an excellent performance record with its completely integrated software program that allows users to customize their files into personal playlists and play them on their PCs. The 1998 Market Engineering Competitive Strategy Award goes to RealNetworks, Inc for creating a line of complimentary products that allows PC and digital media users to send and receive media over the Internet and corporate Intranets. With its 60 million user-installed base to the market, RealNetworks is in a position to make an impact within the Internet audio industry. The 1999 Market Engineering Marketing Strategy Award goes to Diamond Multimedia Systems Inc. for its aggressive marketing and distribution campaign to a targeted customer base which has made their product highly successful. In addition, Diamond Multimedia Systems Inc. launched an audio portal which aims to promote legal MP3 music and other audio content available from the Internet. This website along with the Rio line of products should increase this firm's presence in the Internet audio industry. The 1999 Market Engineering Entrepreneurial Company Award is presented to MP3.com for providing artists with another avenue that introduces their music to a wider audience base, other than that of traditional record companies. The number of visitors to their Web/site has grown to become one of the most popular sites on the Internet. The 1999 Market Engineering Product Quality Award goes to Liquid Audio Inc. for being the first company to provide a complete product line that allows music industry participants to promote and market their own music over the Internet. Liquid Audio has integrated with various e-commerce and database systems and it also complies with rights reporting management systems. Frost & Sullivan is an international marketing, consulting and training company that monitors the Information Technology industry for market trends, measurements and strategies. This ongoing research is utilized to update a series of online subscriptions such as the Internet/Intranet Online Custom Subscription (www.frost.com/online), to support industry participants with customized consulting needs. Visit the Frost & Sullivan's web site: frost.com. Report: 7073-72 Date: June, 1999 Price: $3,450 SOURCE Frost & Sullivan CO: Frost & Sullivan ST: California IN: CPR PUB SU: PDT 07/06/99 07:57 EDT prnewswire.com To edit your profile, go to keyword NewsProfiles. For all of today's news, go to keyword News.

To: Jeffrey D who wrote (6348)	7/6/1999 8:54:00 PM
From: Jeffrey D	Respond to of 18366

Here is the full report from Jupiter. Jeff PR Contacts: Diane Schreiber Jupiter Communications Tel: (212) 780-6060 ext. 208 Anna Svaldi Edelman PR Worldwide Tel: 212-704-8288 Technology Obstacles Slow Adoption of Digital Music Distribution Jupiter Communications Advises Industry Players to Overcome Security Paranoia and Drive Digital Distribution into the Mainstream NEW YORK, July 6, 1999—Despite its hold on the popular media and the recording industry, digital music distribution will not emerge as a mainstream consumer technology until it overcomes major obstacles, according to a new report from Jupiter Communications. The Jupiter research, which was distributed to clients of the company's Strategic Planning Services (SPS) in anticipation of Jupiter Communications' Fourth Annual Plug.In music forum, showed that only three percent of online consumers will purchase downloaded digital music by 2003. This timing offers artists, labels, and distribution sites an opportunity to employ various security and marketing approaches that take advantage of consumer music swapping rather than fighting it. "The music industry is beginning to come to terms with the MP3 phenomenon, which has been at once overhyped and underappreciated," said Lucas Graves, an analyst in Jupiter's Web Technology Strategies. "However, the music industry's best efforts still fall short when it comes to preparing for the day when digital music distribution is commonplace. Companies that focus on strict security measures rather than maximizing the value proposition will lose out." According to the Jupiter research, MP3 will continue to dominate the digital music landscape through 2000, even as makers of hardware and software add support for closed codecs backed by major record labels. Mainstream content from well-known artists, along with consumer adoption of recordable CD technology (even more than digital playback devices like Diamond's Rio), will begin to give higher-quality codecs an edge by 2001; nevertheless, MP3 usage will remain widespread until a better format emerges that supports public encoding and music swapping. Graves warned companies that if they don't accept current standards and adapt to the inherent insecurity of digital distribution, they risk paying the price when the technology goes mainstream over the next five years. He advised record labels to embrace MP3 as a promotional vehicle while the industry settles on formats that offer greater piracy protection for full digital distribution. The Jupiter Media Distribution research will be one of the topics discussed during Plug.In. Now in its fourth year, Plug.In (http://www.jup.com/events/forums/plugin/) will be held on July 19 and 20 at New York's Marriott Marquis. Industry luminaries such as Strauss Zelnick, President & CEO, BMG; Danny Goldberg, President, Sheridan Square Entertainment and Artemis Records; Fred Siebert, President, MTV Networks Online; Chris Blackwell, Chairman, Palm Pictures; Rob Glaser, Chairman & CEO, RealNetworks; and David Watkins, President, RioPort will join more than 800 attendees to discuss "The Future of Music." Topics will include record label strategies, digital distribution, music-oriented online content, intellectual property issues, and more. In conjunction with Plug.In, delegates can also attend The Digital Club Festival (www.digitalclubfest.com) taking place from July 20 through 23. Now in its fifth year, the Digital Club Festival is the world's largest online music event, combining the excitement of live music with cutting-edge, interactive technology. Founded by co-executive producers Andrew Rasiej and Michael Dorf, the Digital Club Festival utilizes the Internet to create a high-tech platform for musicians to reach a global audience. More than 350 bands will perform throughout 20 Manhattan nightspots over the course of the four-day event. Plug.In is produced in association with Michael Dorf, President and CEO, Netmedia; and Andrew Rasiej, President and CEO, Digital Club Festival. Sponsors of Plug.In include BPI Communications Inc., Digital Club Festival, InterTrust Technologies Corporation, Viant Corporation, POLLSTAR, Wired Magazine, Global Fulfillment.com, HSX.COM, LAUNCH, CDDB, Live365.com, Audio Explosion, Inc., and RealNetworks, Inc. To attend Plug.In, visit Jupiter's Web site (http://www.jup.com/events/forums/plugin/) or call Jupiter's customer service line at (800) 611-1693 or (212) 780-6060 ext. 103 for international callers. Jupiter Communications is a new media research firm that helps companies make intelligent business decisions about consumer interactivity. Focused exclusively on the way the Internet and other technologies are changing traditional consumer industries, Jupiter's Strategic Planning Services (SPS) deliver a continuous flow of analysis, primary data, and market projections. SPS offers companies investing in new technologies a framework for realizing return on investment-both for new lines of business in mainstream media, entertainment, commerce, and marketing, as well as for Internet- and technology-based start-ups. Jupiter also produces industry seminars, newsletters, and book-length research studies. Established in 1986, Jupiter Communications, LLC is an independent, privately held company with offices in New York City and London as well as a joint operation in Sydney, Australia.