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Technology Stocks : MPPP - MP3.com -- Ignore unavailable to you. Want to Upgrade?

To: DAY TRADER who wrote (360)	7/22/1999 1:21:00 PM
From: DiViT	Read Replies (1) \| Respond to of 1116

Competition: MTV and Universal... MTV will have far better branding power than any other MP3 delivery company. RIOPORT GETS PROMOTIONAL DEALS WITH MTV AND UNIVERSAL 07/21/1999 COMMUNICATIONS DAILY (c) Copyright 1999 Warren Publishing, Inc. All Rights Reserved. Strengthening its position as leading distributor of downloadable digital music, RioPort Tues. announced cross-promotion and content deals with Universal Music Group and MTV Networks Online (MNO). Exclusive deal with MNO gives RioPort access to technologically savvy segment of population that has been quick to embrace MP3 technology. RioPort executive said Universal deal is first of several planned content agreements giving consumers access to music not previously available in digital format. RioPort, subsidiary of Diamond Multimedia, is manufacturer of RioPort portable MP3 player. Company last month launched Web Site, RioPort.com, including comprehensive directory of downloadable digital music and search engine. Meanwhile, sponsors of digital music conference in N.Y.C. warned recording industry that reluctance to embrace MP3 downloadable music would jeopardize future profits. Jupiter Communications predicted that digital distribution music sales would reach $146.6 million by 2003. Sales this year are projected at $300,000. Agreements ultimately serve 2 ends -- to give consumers access to more content and to provide framework for delivering digital music where record companies feel secure that their rights are being protected, said RioPort Pres. David Watkins. RioPort primarily is using InterTrust digital rights management (DRM) software and Reciprocal clearinghouse technology. Site also supports MicroSoft WMA Windows Media Player, which has DRM component, he said. RioPort won exclusive multiyear agreement with MNO to provide Web sites with downloading and digital rights management applications in exchange for undisclosed equity stake and sharing of revenue from digital music sales. Watkins wouldn't reveal specifics. MNO will promote RioPort across all its sites including MTV.com, Nick.com, SonicNet, VH1.com. "Our audience demands and expects that we help them download music," MNO Pres. Fred Seibert said. "RioPort provides us with the opportunity to be able to do so in a secure and easy way that's SDMI compliant." MNO will provide audio content to RioPort, proprietary programming such as artist interviews and other nonproprietary content, beginning in 4th quarter. RioPort will create co-branded online audio players for each MNO property that in turn will have access to RioPort's catalog of music titles. Content from Universal Music Group labels will be integrated into RioPort search engine. RioPort is first digital platform to offer content from Universal Music, home of A&M, Geffen, Island and Motown labels. Universal is building catalog of artists that will be combined with RioPort's database of downloadable music. Recording industry's "defensive" posture toward MP3 Internet downloads will impede future profit potential of digital music distribution, research firm Jupiter Communications said in report that kicked off digital music conference in N.Y.C. Mon. Analyst Mark Mooradian said digital music distribution market is being limited by factors such as "bandwidth constraints" and availability of MP3 downloads as "free alternative." Jupiter said online sales of "physical" music media such as CDs through services such as CDNow and Amazon.com amounted to $152 million in 1998 -- only 1.1% of $13.7 billion in total recorded music sales. However, Jupiter said market is expected to double to $327 million in 1999, exceeding $1.6 billion in 2002, and approaching $2.6 billion in 2003, capturing 14% of total U.S. retail market.