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Technology Stocks : MUSIC STOCKS: HIGH-TECH AND INTERNET- Winners and losers. -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (130)	5/19/2000 1:33:00 PM
From: Tony A. Matthews	Respond to of 179

Recent article published by Interactive Week and my response to the Author Why MP3 Won't Win By Randy Barrett, Inter@ctive Week zdnet.com ----- My Response to the author (barretone@patriot.net) Sir, your article "Why MP3 Won't Win" fails to address a number of important issues. Before I mention these points, a brief disclaimer. I am neither a supporter of piracy nor of the record companies inertia of moving towards digitalised downloadable music. I speak as a frustrated consumer who would like nothing more than to see the mainstream support of a portable digital format which provides me all the benefits that our computerised era has granted us. Firstly, you fail to mention that a significant part of a record companies is in supporting (sponsoring) new artists and in the marketing, promotion and distribution of CD's. Your claim that anything price above production costs is profit is completely inaccurate. Whilst I agree with you that CD costs are too high, I also sympathise with record companies in the public's misperception of CD costs. But this is not my real issue with your article. Whilst I agree with you that packaging and branding creates inherent value in owning a CD you've missed the point completely with what MP3 offers consumers. MP3, being an open digital music format, offers two fundamental features that CD don't 1) ease of distribution and 2) managability and customisation. On the distribution point, MP3 allows me to quickly and easily find music using online databases (whether this be through illegal means like Napster or legal means such as Emusic.com) and easily download them to my PC. I've always hated shopping and now I can get music with my DSL line literally within minutes. On the managability point, once these files are on my PC I can then use popular Jukebox software to store, organise and play these songs better than I can manage my hundreds of CDs on my book shelf. Within minutes I can create a customised music list with all my favourite songs which I can play through my home hi-fi system (without having to change CDs every few minutes). Needless to say my PC is now my home entertainment unit and has all but replaced my conventional CD player. When I purchase my portable MP3 player I will be able to make customisable play lists which I can upload to my walkman, again within minutes, and take with me in the car or while I'm jogging. The point is that through the establishment of a new digital music format (MP3) music has become much more user friendly and accessible. Whether it's through purchasing music (check Emusic - I believe this is the model record companies should move towards), storing music or playing music. The point is not whether MP3 will win, it's a matter of when the record companies will acknowledge it's potential and use it to their advantage. Napster has shown the world how easily accessible music can be, it's now up the the record companies to turn this into a money making initiative so that artists continue to be compensated and economic incentives continue for music to flourish. My final statement is in rebuttal to your final statement "After all, listening to music is about convenience. At that, a real CD wins hands down". No sir. This is where MP3 wins hands down.