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Technology Stocks : Liquid Audio Inc - (Nasdaq- LQID) -- Ignore unavailable to you. Want to Upgrade?


To: R Hamilton who wrote (623)6/9/2000 11:05:00 AM
From: R Hamilton  Read Replies (1) | Respond to of 674
 
(found on liquid's web site):
Source: Billboard
billboard.com

BMG Names Partners In Digital Distrib. Strategy (Billboard -
500 words - April 15, 2000)

BY BRIAN GARRITY

NEW YORK-BMG Entertainment on April 6 became the first major
label to unveil a complete infrastructure framework for its digital
distribution strategy, naming a half-dozen strategic partners
that will facilitate the pending rollout and promising the release
of content, both current hits and catalog, by summer.

The approach aims to create a vehicle for widespread consumer
acceptance of downloadable music files sold over the Internet.

"As we begin to build a legitimate market for commercial
downloading, it is critical that we support multiple technologies
to ensure that our artists will be widely accessible to music fans
around the world," says Kevin Conroy, BMG senior VP, worldwide
marketing and new technology. "That's really the anchor."

Still to be decided: just how much content will actually be
released into the marketplace and from which artists. The
thinking, according to BMG, is to ramp up the number of titles
made available via digital distribution as the year progresses,
with the goal of having a "substantial amount" of music available
for sale for the holiday season.

Also to be seen are decisions surrounding content hosting,
compression formats-or codecs-and participating retailers'
pricing models.

Under the strategy, BMG will support three digital rights
management (DRM) formats: IBM's Electronic Media Management
System, the DRM from InterTrust Technologies Corp., and
Microsoft's Windows Media DRM. It will also support two
clearinghouse platforms: Reciprocal Inc. and Bertelsmann AG's
Digital World Services. Assigned to integrate all these
independent technologies into one system that BMG and its
participating retailers can use is Liquid Audio.

Under the BMG plan, the label will be promoting not only multiple
technology formats but also ubiquitous distribution via retail.
Executives stress that the new framework is an invitation to
retailers to participate in an open network of partners.

For many of the back-end music technology companies-including
IBM, which provided the test pilot technology in the
industry-sponsored download experiment known as the Madison
Project-the announcement is particularly significant.

"It's kind of like, "Gentlemen, start your engines,' " says Rick
Selvage, GM, IBM Global Media and Entertainment Industry, of
the BMG announcement.

However, no BMG partner should get too comfortable just yet.
The record giant says it plans to narrow the number of
technologies it supports in the future. Such decisions will be
based on market performance in areas like security, flexibility of
business models, reach, and retail and consumer response.

Under the new arrangement, InterTrust, Microsoft, and IBM will
each supply their own rights-management systems-technologies
that dictate content-usage rules. Meanwhile, Reciprocal and
Digital World Services, as the clearinghouses, will be responsible
for packaging, account and customer information management,
financial clearing, and systems integration.

Liquid, on its end, will provide software that allows BMG to
manage all its digital music assets on one system, regardless of
the technology platform. It will also supply online retailers with a
software application that funnels different DRM and
clearinghouse technologies into their own existing systems.