Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Diamond Multimedia -- Ignore unavailable to you. Want to Upgrade?

To: Bernhard Michaelis who wrote (3815)	11/21/1998 12:03:00 AM
From: nick nelson	Read Replies (1) \| Respond to of 4679

SI is kinda experiencing a slow death.... Yahoo is up and coming. messages.yahoo.com@m2.yahoo.com nick

To: Bernhard Michaelis who wrote (3815)	11/21/1998 12:56:00 PM
From: E. M. Edds	Read Replies (1) \| Respond to of 4679

Below is an article that was forwarded to me that was printed in Iconocast that came out Wednesday, November the 11th, 1998. Note that the "huge shipment" of Rios by Best Buy. I hope this helps. I C O N O C A S T b y M i c h a e l T c h o n g Market Intelligence for Intelligent Marketers ++++++++++++++++++++++++ 11-Nov-98 ++++++++++++++++++++++++ Music Market ************ Summary: The popularity of MP3 has added a completely new dimension to the online music market, one that will propel online music sales to $1.4 billion by 2002. In the year since ICONOCAST last reported on the Internet music market, a number of significant changes have taken place. Foremost is the emergence of the MP3 format, an abbreviation for motion picture experts group-1 audio layer three, which is turning the music industry on its head. According to the International Federation of Phonographic Industries, some 90 million MP3 tracks are downloaded each month. MP3.com reports that 1.5 million unique users downloaded some 2 million promotional songs in September. One thing that hasn't changed, is the foot dragging by the major music studios. Despite the fact that recorded music sales have flattened (through the first half of 1998 it was $5.8 billion compared to $5.2 in 1997, according to the Recording Industry Association of America), the studios and their peons are fighting progress tooth and nail. "It's the classic example of the old school trying to take the current business model and jam it on the Net," complains MP3.com President and CEO Michael Robertson. They could be fighting a thankless war. [Robin Williams might label the play-by-play, "Good morning, Vietnam!"] >From the RIAA's futile lawsuit against Diamond Multimedia Systems' MP3 player Rio to the organization's influence over artists like Beastie Boys, the music industry is valiantly trying to maintain control. But it may already be too late. For $35 users can buy software from xingtech.com that converts CDs into MP3 files. And with the release of Rio later this month, the technology for a music revolution may well be in place. Forrester Research estimates 10 million people already have software able to read MP3 files. Even Microsoft's player is capable of reading them. Still, Jupiter Communications' digitally delivered music forecast is only $30 million, or 2% of total online music sales by 2002. IUMA expects digital distribution to reach 20% of music revenues by 2007. While Yahoo! boasts some 42,825 music sites (up 32% from the last time we looked), Forrester estimates that only 18% of the 1,800 music labels are online. Independent labels are expected to fill in where the major record companies are leaving off. Not only will "indies" be selling CDs online, but they'll also lead the industry in MP3 downloads. Forrester predicts Indies will generate $1.3 billion in online sales by 2002, up from only $5 million in 1998. Other market highlights: * Market size - Jupiter estimates online revenues for the music industry will reach $81 million in 1998. * Market forecast - Online sales are expected to rise to $1.4 billion by 2002 says Jupiter. Forrester projects the Internet will account for 28% of the overall market by 2002, up from 0.6% in 1997. * Market players - The most significant change in the online music scene was the spring arrival of e-commerce sites by Borders and Amazon.com. These moves are partly responsible for the recent merger between N2K and CDnow, which, with a combined customer base of 1.2 million, are better equipped to duke it out with the two big book sellers. Expect the following table to change dramatically in 1998: ----------------------------------- ------- Online Market Share ------- Site 97 Revenue Share ----------------------------------- CDnow $16M 33% N2K 6 12 Cendant 2 4 Other 25 51 Total $49M 100% ------------------------------------ Source: Apr. 1998 Jupiter Communications According to data compiled by Web21, the leading music fan sites are Sony (includes more than just music) and MTV: ---------------------------------- ------- Top 10 Music Sites ------- Rank Site ---------------------------------- 1. Sony 2. MTV Online 3. Spinner.com 4. MP3.com 5. CDnow 6. ShockRave 7. MUSICVIDEOS.COM 8. Broadcast.com 9. Electron Music 10. Creative Zone (Creative Labs) ---------------------------------- Source: Oct. 1998 Web21 It looks like the forces of free content and artist rights are poised for a fierce Net battle. While ICONOCAST deplores piracy, we believe that all this negative energy should be channeled into more positive efforts. Last week's debut at Webnoize of Liquid Audio's Liquid Watermark, which authenticates musical recordings and other audio-based intellectual property, is a step in the right direction. As any marketer will tell you, trial encourages sales. Sources tell ICONOCAST that Best Buy ordered a "huge shipment" of Rios. If their nose for hot sellers is any indication, consumers want choice. The industry should heed that call, because the train is leaving the station. * Key business opportunity: Marketing outfits that know how to turn sampling into sales. Julie Blacklidge contributed to this story.