To: StocksDATsoar who wrote (33908 ) 3/7/2000 6:05:00 PM From: CIMA Respond to of 150070
DSNY - Got this from IR today: Some of the media articles are just starting to come in from our recent attendance at the New York World Music Expo. This one is from PC World.compcworld.com Coming Next: Ads with Your MP3s? Destiny Media designs encrypted MP3 files you can share (briefly) for a price. by Marc Ferranti, IDG News Service March 7, 2000, 11:44 a.m. PT Destiny Media Technologies, distributor of MP3 technology, is offering a new angle on the wildly successful music file format: a way for you to embellish the files you download, and a way for distributors to protect and profit from them. The company's MPE (encrypted MP3) format lets online music distributors bundle text and graphics along with the encoded music file. When you download a MPE song, you'll see additional material, like related art and marketing material, as well as music and production credits, according to company executives. They described their technology at New York Music & Internet Expo recently. Related MPE technology, integrated into both the song file itself and on back-end servers, lets online music distributors collect money from people purchasing the songs, manage distribution rights, and track sales and referrals. Destiny officials acknowledge they face a number of big-name players in the music distribution and digital rights management arena. But the Canadian company believes it holds a trump card in MPE. "MPE allows for what's being called 'viral marketing,' where one person who loves a song can send the file via e-mail to friends, who can then play a 30-second sample, and if they like it, purchase it as well," says Ed Kolic, chief operating officer for Destiny. Try, Then Buy When you download an MPE file, you get a package that includes the song compressed in MP3 format, a player, and the right to play 30 seconds of the song. If you then decide to buy the song, you click on a button on the player and, using a credit card, make the purchase. The format includes software that ties the song file to the unique identifier on your hard disk drive and portable MP3 player, Destiny officials say. You can send the file (and the related player) to friends, who can repeat the process of previewing the song and possibly buying it. On the money side, Destiny is setting up a payment scheme where all parties on the music production, copyright, creation, and distribution end, as well as Destiny itself, get a cut of each transaction. The company hopes to get about 15 to 20 percent of each transaction. However, Destiny has an uphill battle to fight against much bigger companies such as Liquid Audio, Microsoft, and Intertrust Technologies. Even if Destiny is among the first to market with a working solution, these other companies are working on digital-rights software that offers similar capabilities, says Dan O'Brien, an analyst with Forrester Research. "They're going to have to convince potential partners to trust that they have the ability to do the complicated rights management and transaction tracking on the back end," O'Brien says, "and they're up against much bigger players, some of whom already have commitments from major companies." ADVERTISEMENT Printer-Friendly Version Related Links How It Works: MP3 Play That Funky Download Anywhere Create Your Own MP3 Radio Station Why Industry Sued MP3.com External Links Destiny Media Technologies Liquid Audio Copyright ¸ 2000 PC World Communications. All Rights Reserved. Use of this service is subject to the PC World.com Terms of Service Agreement. PC World.com complies with the ASME Guidelines with IDG Extensions for new media.