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To: GC who wrote (714)	1/17/2000 1:23:00 PM
From: GC	Read Replies (1) \| Respond to of 767

AOL and Time Warner to Merge Is This the Beginning of the End for the Recording Industry? Opinion by Doug Cornell Hold on to your seat. If you thought the recording industry was in a state of turmoil lately, you haven't seen anything. America Online and Time Warner announced a merger yesterday, and the result may be a paradigm shift in the way music is distributed around the world. AOL could end up controlling a significant amount of music, in MP3 and other formats. These songs will be sold as on-line singles, pushing album sales into a niche market. The end result may well be the end of the corner record store. Web sites such as AMP3.com and MP3.com will become the CD Now (who are just now getting into the digital music market) of tomorrow, as music fans abandon the retail stores and download the music from the artists they enjoy. These changes will take time, perhaps up to five years. The AOL/Time Warner merger needs to be completed before the music business transformation may begin, but AOL/Time Warner are expected to begin integrating their music business holdings in the very near future. In a company press conference, Time Warner chairman Gerald Levin left no doubt that music was the main reason the two companies began the merger. "Music," Levin said, "is the perfect digital medium: It's easy to record, distribute, and download even over narrowband pipes -- as well as being the entertainment content with the greatest universal appeal." Anyone reading this essay knows what Levin is talking about. We already understand the value of on-line marketing and distribution. Michael Sharp, AMP3.com CEO, says, "This merger further legitimizes the efforts of AMP3.com to promote and provide income for the artist." Now that anyone can burn a CD for about a buck, music fans are downloading singles and creating their own compilation CD's. The quality and diversity of on-line music available has made it possible for the average music fan to find music styles that were never before available, both from established stars and the exciting independent artists who are forging a new path for the music industry. Whether AMP3.com's Single Jingle (TM) or a pay-per-download business model is used, the consumer will have an unprecedented selection available at his fingertips. Bandwidth will improve drastically over the next year or two, and that 30 minute download on a 28.8 modem will take mere seconds. As AMP3.com nears its first year of operation, I am continually amazed at the quality of music on this site and the changes that are occurring from within the industry. It looks like the next several months will continue to bring exciting changes, and it's going to be an interesting time to be in the music business. Respond to this article