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To: J.N.N. who wrote (12097)	4/6/2000 12:53:00 PM
From: bob	Respond to of 18366

Just a bit more news from SONY today. SONY INTERNET MUSIC NEWS: April 6, 2000 Business News Archives Sony Unit to Set Up Japan Online Music Venture A unit of Sony Corp. said on Thursday it would set up an online music distribution system with 10 big Japanese recording companies in a bid to tap the promising Internet music market. Internet service provider Sony Communications Network said it will set up a new company, Label Gate, to offer a music portal site which will allow users to download music sold by the participating record companies, which together hold a 60 percent share of Japan's recorded music market. Several Japanese companies including Internet investor Softbank Corp. and mobile phone service provider NTT Docomo have already announced plans for online music distribution, but analysts said the breadth of companies taking part in the Sony venture will give it a decided advantage. Sony Communications president Senji Yamamoto told a news conference that the company will initially be set up with 50 million yen ($480,000) in capital and later issue new shares worth another 50 million yen to the 10 record companies before launching its service in late April. Those firms include Avex Inc., a major Japanese producer of music CDs, and Sony Music Entertainment, the record label arm of Sony. The record companies will decide the content and the pricing of their products, while Label Gate will provide the payment infrastructure and customer support, said Yamamoto, who will head the new company. Sony Communications estimates revenue of 6.5 million yen for the first year from the commission it will receive from the partcipating companies. But the stock market appeared unimpressed by the news. Sony shares closed Thursday on the Tokyo Stock Market down 190 yen or 1.33 percent at 14,060, while Avex shares closed down 1,560 yen or 8.76 percent at 16,240. "