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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: John F. Dowd who wrote (37039)1/24/2000 12:42:00 AM
From: Ian Davidson  Read Replies (1) | Respond to of 74651
 
From the WSJ:

January 24, 2000

Microsoft Pushes Its Media Technologies
In Pacts With Intertainer, Liquid Audio

By DAVID BANK
Staff Reporter of THE WALL STREET JOURNAL

Microsoft Corp. reached separate agreements with Intertainer Inc. and
Liquid Audio Inc. to supply movies, music and other entertainment for both
personal computers and television set-top boxes that use Microsoft's
Windows media technologies.

The deals, to be announced Monday, are part of Microsoft's effort to
assure there is an ample supply of "content" specifically formatted for
Windows to help persuade consumers and network operators to adopt
Microsoft's technology as the underlying platform for delivering and
receiving digital audio and video.

Microsoft, based in Redmond, Wash., invested $56 million for an
approximately 20% equity stake in Intertainer (www.intertainer.com), a
closely held start-up in Culver City, Calif., that also has investments from
Comcast Corp., Intel Corp., Sony Corp.'s Sony Corp. of America unit
and the NBC unit of General Electric Co. The deal gives Microsoft access
to Intertainer's "on demand" service that provides movies, music, TV
programs and shopping services to users with "broadband," or high-speed,
connections. In return, Intertainer will adopt Microsoft's Windows media
technologies.

A Showcase for Microsoft

The deal allows Microsoft to showcase the availability of high-quality
content from many leading entertainment studios when pitching its
technologies to cable-TV operators and other providers of high-speed
services, such as telephone companies offering digital subscriber line, or
DSL, services. However, Intertainer and the network operators must
reach their own agreements before the service is offered to consumers.

Financial terms of the deal with Liquid Audio, one of the leading
distributors of music on the Internet, weren't disclosed. Liquid Audio, of
Redwood City, Calif., agreed to encode its catalog of more than 50,000
downloadable songs and one million music previews using Microsoft's
Windows media format, pending agreements with individual record labels.
Liquid Audio also agreed to add Windows media technology to future
releases of its Liquid Player, software for playing digital music on the
Internet.

The deal advances Microsoft's efforts to establish Windows media
technology alongside, or instead of, popular formats such as MP3.
Windows media technology offers record companies additional
copyright-protection features, known as "digital rights management," that
aren't available with MP3. Liquid Audio said it will operate a clearinghouse
for Windows media technology digital-rights-management services.

Demand or Liquid Audio

Gerry Kearby, chief executive officer of Liquid Audio, said his company
had received an increasing number of requests for the Windows media
format from customers and retailers and decided to adopt it along with
other formats. "We are the technology that gets the music from the labels
to the retailers in the formats that they want," he said.

Separately, Microsoft said it will launch ClearLead, a new web site to
enable businesses to manage customer inquiries and sales leads over the
Internet. Microsoft's own CarPoint automotive site will be the first
customer for ClearLead, using the service in its DealerPoint system for car
dealers. The company said ClearLead will enable auto dealers to respond
to more customer inquiries in less time and cut average per-car selling
costs. The web site will be available for general use in the spring, Microsoft
said.

Write to David Bank at david.bank@wsj.com

Ian