from the edig board
To: JimC1997 who wrote (12085)
From: bob
Thursday, Apr 6, 2000 9:52 AM ET
Reply # of 12112
BIG NEWS FROM BMG that bodes well for EDIG!
From murrayhill on RB.
BMG Unveils Comprehensive Online Digital Downloading Plans
For The Year 2000 and Beyond
BMG Announces Strategic Relationships With Digital World Services, IBM, InterTrust, Liquid Audio, Microsoft
and Reciprocal to Deploy Systems For Selling Digital Music Downloads Through Online Retailers This Summer
NEW YORK, NY, April 6, 2000 - BMG Entertainment today announced its overall plans for online digital
downloading, which will be implemented for commercial deployment this summer through an open network of retail
partners. As part of this announcement, BMG identified a series of strategic relationships, including support for
IBM?s Electronic Media Management System (EMMS), InterTrust Technologies Corporation?s (Nasdaq: ITRU)
Digital Rights Management technology and Windows Media? Technologies. In addition, BMG announced alliances
with Digital World Services and Reciprocal for digital rights management services, and has selected Liquid Audio
(Nasdaq: LQID) to develop an open distribution infrastructure that will integrate various music delivery
components into one interoperable system. These alliances represent a significant step for BMG toward making its
artists? music widely available through secure, electronic distribution channels.
Under these agreements, BMG will offer music for sale through online retailers utilizing the IBM, InterTrust and
Microsoft technology platforms. To facilitate commercial transactions between BMG, the retail channel and the
consumer, BMG has established strategic relationships with Digital World Services and Reciprocal to provide
clearinghouse services. These services will include packaging, account and customer information management,
financial clearing and systems integration.
In addition, BMG has entered into an agreement with Liquid Audio to develop Command and Control
Applications software to integrate component technologies from several companies and let BMG control the flow
of content online from the point of creation to retail delivery. Using Liquid Audio?s RIMS and RIFFS Command
and Control Applications, BMG will have one unified view to manage all their digital music assets, regardless of
technology platform.
BMG will continue to monitor market developments and based on security, flexibility of business models, market
reach and retail and consumer response, will narrow the number of technologies it supports in the future.
BMG?s initiatives will launch this summer with a rich content offering comprising current hits and
catalog product that consumers can experience through SDMI-compliant software and hardware
products. The number of titles made available through these initiatives will ramp up significantly, with
the goal of having a substantial amount of music available for sale through electronic distribution by this
holiday season.
?After many months of performing extensive technical and business due diligence on the long list of companies
moving into the digital music market, we are pleased to take these important and very exciting steps toward making
our artists? music widely available through digital downloading,? said Kevin Conroy, Sr. Vice President,
Worldwide Marketing and New Technology, BMG Entertainment.
?The technologies and clearinghouses that BMG has selected will enable us to achieve the greatest possible reach
and provide consumers with the best possible experience while protecting our artists? rights,? Conroy continued.
?SDMI has played a crucial role in creating an environment that encourages these types of strategic relationships,
and we believe that the steps we are taking will help to accelerate the development of a legitimate commercial
market for digital downloads of our artists? music.?
A significant driving force behind BMG?s strategy is to establish business relationships that will create an
environment that enables BMG?s current and future retail partners to integrate efficiently with BMG?s systems for
digital downloading.
?BMG strongly believes that the retail channel will be a critical element to connecting our artists with their fans in
the electronic distribution environment,? said Pete Jones, President & CEO, BMG Distribution & BMG
Associated Labels. ?Consequently, we have established a strategic framework that will enable our retail partners to
take advantage of significant opportunities this year, and will provide a clear pathway for the retail community to
more than keep pace with future advances in technology.?
BMG?s strategy is rooted in an effort to provide direction to the consumer electronics, software and retail sectors,
while promoting a high level of interoperability between key elements of the digital distribution value chain. To this
end, two key elements of BMG?s partnerships are commitments from technology providers to widely license their
products on a non-exclusive basis, and for clearinghouse operators to support multiple technologies. This is
consistent with BMG?s desire to foster a competitive digital marketplace in which business considerations drive the
development of new technology and services.
Johann Butting, CEO of Bertelsmann's Digital World Services said: "Digital World
Services is extremely enthusiastic about our strategic partnership with BMG and
how it will help facilitate BMG's groundbreaking efforts in secure online
digital music delivery. As a result of our alliance with BMG, Digital World
Services has developed digital rights management services that meet the specific needs of the music industry,
enabling us to provide efficient clearinghouse services and SDMI-compliant turnkey solutions including packaging
and retailer integration."
"We are pleased to work with BMG again soon after our collaboration on the
AlbumDirect consumer music distribution trial, which validated IBM's EMMS
technology," said Richard K. Selvage, general manager, IBM Global Media and
Entertainment Industry. "IBM is proud to be part of BMG's effort as it is an exciting proposition for the digital
music marketplace and continued testament to the power of e-business."
?Intertrust is pleased to be the Digital Rights Management technology partner for BMG?s digital downloading
initiative,? said Victor Shear, Chairman and CEO, InterTrust Technologies Corporation. ?Combined with the
services of our MetaTrust Partners we look forward to providing BMG with the Digital Rights Management
technology to create an integrated music experience that will inspire artists, enable retailers, and create a compelling
consumer experience.?
?Liquid Audio?s open distribution infrastructure bridges a wide range of music delivery technologies and will enable
BMG to support all leading digital music standards in one interoperable system,? said Gerry Kearby, chief
executive officer of Liquid Audio, Inc. ?Using our Command and Control Applications, BMG will be able to
manage the flow of content from the point of creation to delivery, and simplify the retail experience when offering
music in multiple formats.?
"BMG is paving the way for the new era of digital music distribution, and we're pleased that Windows Media plays
an integral role in this major step forward," said Will Poole, vice president of the Digital Media Division at
Microsoft Corp. "BMG's selection of Windows Media technology ensures the widest possible audience of
consumers for digital music while protecting the needs of artists and the industry."
?We applaud BMG for its pioneering move into the Digital Age and are thrilled to play a seminal role in the ongoing
transformation of the music industry,? said John Schwarz, President and CEO, Reciprocal . ?This represents an
important milestone for BMG, Reciprocal and the music industry as a whole, and further validates our vision to
provide services that leverage multiple DRM technologies and that enable the digital distribution of all forms of
content.?
About BMG
BMG Entertainment is the $4.7 billion worldwide music and entertainment division of Bertelsmann AG, one of the
world's leading media companies, with annual revenues of $16.4 billion. BMG owns more than 200 record labels
in 53 countries, including Arista Records, RCA Records, Ariola and Windham Hill. BMG has been a leader in
using the Internet to bring fans closer to their favorite artists. In addition to establishing GetMusic, an online content
and commerce joint venture, BMG?s online presence includes more than 30 wholly owned music & lifestyle Web
sites around the world, and strategic marketing agreements with and key investments in leading online companies
ARTISTdirect, Riffage.com, Egreetings Network, Listen.com and Eritmo.com, among others. BMG also owns the
world's largest music club, one of the world's largest music publishing companies, and one of the world's leading
compact disc and cassette manufacturing companies. Bertelsmann's North America interests also include the
Random House Inc. book publishing group; and the Gruner + Jahr magazine publishing group, which includes
McCall's, Parents, Family Circle and YM magazines, among others.
About Digital World Services
Digital World Services is providing clearinghouse services in digital rights
management (DRM) for the entertainment and publishing industries, enabling
content providers to exercise complete control over digitally delivered products. Based in New York and
Hamburg, Germany, Digital World Services is a division of Bertelsmann AG, Europe's largest media company and
a world leader in e-commerce for media products. In addition to clearinghouse operations including usage and
financial clearing, Digital World Services offers capabilities for content preparation and secure packaging, as well
as system integration tailored to specific customer needs. By ensuring the protection of copyrights, Digital World
Services enables content providers and distributors to deliver their digital products directly to consumers over the
Internet and realize its full marketing and distribution potential. The company's technology partners include
InterTrust, a leader in digital rights management technology, and Reciprocal Inc., who provide comprehensive
global back-end services. Digital World Services is one of the founding members of the Secure Digital Music
Initiative (SDMI) and actively assists in the development of international standards for securing digital products
across all digital delivery platforms.
About IBM
IBM is the world's largest information technology company, with 80 years of leadership in helping businesses
innovate. IBM is helping media and entertainment companies worldwide take advantage of the business
opportunities made possible by digital technology. IBM offers a comprehensive portfolio of solutions, networking
and service offerings that is transforming the traditional creative and business processes of media and entertainment
companies and positioning them to leverage their intellectual assets into new commercial opportunities.
IBM's Electronic Media Management System (EMMS) is a sophisticated electronic media distribution
management system designed to support all forms of media beginning first with music and audio content. EMMS
was successfully tested in a broadband music distribution trial conducted with the five leading record companies
last year. The system combines scalability and security features within an open architecture. Major components of
EMMS include a content mastering system, tools for hosting music content and promotional materials, and tools for
online music retailers supporting the sale of digital music to consumers. The system features a clearinghouse that
tracks the sale of digital music content and manages access and usage privileges as designated by the music owner.
For more information on IBM strategy for the media and entertainment industry, contact
www.ibm.com/solutions/media.
About InterTrust Technologies Corporation
InterTrust Technologies Corporation is the leading developer of distributed digital rights management (DRM)
technology. InterTrust has developed a general-purpose DRM platform that serves as a foundation for providers of
digital information, technology, and commerce services. InterTrust licenses its DRM platform as software and tools
to partners. Collectively, these partners intend to offer digital commerce services and applications that form a global
commerce system branded as the ?MetaTrust Utility.? InterTrust serves as the neutral administrator of the
MetaTrust environment.
About Liquid Audio
Liquid Audio, Inc. is a leading provider of software and services for the digital delivery of music over the Internet.
The Liquid Audio solution gives musicians, record labels, Web sites and music retailers the ability to publish,
syndicate and securely sell recorded music online with copy protection and copyright management. Using the
Liquid? Player software, available for free download at www.liquidaudio.com, music fans can preview and
purchase downloadable music from more than 750 affiliates? Web sites in the Liquid? Music Network. Traded on
Nasdaq under the symbol LQID, Liquid Audio is located in Redwood City, California.
Liquid, Liquid Audio, Inc., Liquid Audio, the Liquid Audio logo, Liquifier and Liquid Music are trademarks of
Liquid Audio, Inc.
About Windows Media and Microsoft
Windows Media, the leading digital media platform, provides consumers, content providers, solution providers,
software developers and corporations with unmatched audio and video quality. Windows Media Technologies,
which include Windows Media Player, Windows Media Services, Windows Media Tools and the Windows
Media Software Development Kit (SDK), are available for download at
microsoft.com. The Windows Media Player is the fastest-growing digital
media player and is available in 24 languages. To date, there are over 100 million licensed copies of the Windows
Media Player, growing by more than one every second.
Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and Internet
technologies for personal and business computing. The company offers a wide range of products and services
designed to empower people through great software - any time, any place and on any device.
About Reciprocal
Reciprocal, the global leader in digital rights management transaction services, provides comprehensive,
easy-to-implement e-commerce clearing services and back-office solutions for the music, publishing, software, film,
entertainment, and other digital content industries. Reciprocal offers content owners a true outsourced DRM
solution that allows them to realize new revenue streams while efficiently protecting their online digital assets.
The Reciprocal Digital Clearing Service leverages leading DRM technology from InterTrust Technologies
Corporation, Microsoft Corp., IBM, Xerox Corp., Adobe Systems Incorporated, and Preview Systems, allowing
companies to choose the solution that best fits their business needs. The Reciprocal Digital Clearing Service is
secure, flexible and capable of handling millions of transactions per day. Leading content companies such as Sony,
Houghton Mifflin, Reuters and TVT Records have selected Reciprocal as their digital rights management services
provider. Privately held, Reciprocal maintains offices in New York City, Buffalo, NY and Research Triangle Park,
NC. For more information on Reciprocal, contact www.reciprocal.com.
# # #
Contact: Nathaniel Brown
BMG Entertainment
212.930.6790
nathaniel.brown@bmge.com
Willms Buhse
Digital World Services
212.930.7670
willms.buhse@dwsco.com
Kim Nguyen
IBM
415.545.2187
ktnguyen@us.ibm.com
Joe Jennings
Intertrust
408.855.0270
jjennings@intertrust.com
Kim Strop
Liquid Audio
650.549.2194
kstrop@liquidaudio.com
Geordie Wilson
Microsoft
425.703.6682
gwilson@microsoft |
