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 : EDTA (was GIFT) -- Ignore unavailable to you. Want to Upgrade?

To: cc rogers who wrote (2281)	5/26/1999 1:41:00 PM
From: Mel Spivak	Respond to of 2383

IF, the patent is upheld, this would be exciting news: AT&T, music producers in audio deal The goal: Transmit, sell recordings over the Internet By Jeffry Bartash, CBS MarketWatch Last Update: 12:32 PM ET May 26, 1999 NEW YORK (CBS.MW) -- AT&T and a group of entertainment giants said Wednesday they will develop a secure system to allow consumers to download and record music over the Web and play it back on computers or audio devices. AT&T will team up with Matsushita Electric Industrial (MC: news, msgs), Bertelsmann AG's BMG Entertainment subsidiary and Seagram's (VO: news, msgs) Universal Music Group to create the new technology, dubbed Electronic Media Distribution. See press release. "We are on the verge of a whole new world where consumer access to music will become virtually instantaneous, said Doug Morris, chief executive of the Universal Music Group. Piracy protected The entertainment companies hope to take advantage of the growing demand for digital-quality music over the Web and to counter a mushrooming level of piracy under which artists and music producers stand to lose countless millions of dollars. Already, Web browsers can use a technology called MP3 to record high-quality music over the Web, thereby avoiding any fees. "We are looking to provide the best possible online experience for music fans and consumers, while protecting the rights of our artists," said Kevin Conroy, a top executive at BMG Entertainment. For AT&T's (T: news, msgs) part, the telecommunications provider would benefit by supplying the high-speed broadband network over which the music would travel. Since music takes up much more "space" on a network than typical voice traffic, it's best transmitted over high-speed Internet connections. Music matters "Creating a networked digital music industry is akin to creating a new economy," said David Nagel, chief technology officer of AT&T. "We need to work together on the infrastructure -- the roads, the airports, and the utilities -- so that the new economy of digital music distribution can achieve explosive growth by creating a much better customer experience." Under the agreement, the companies' technology would also let consumers obtain access to graphics, lyrics, video and Web links tailored for the music. Users would be able to store the information on computers or on newly developed devices geared to handle music obtained via Web sources, such as a digital video disc player. Still, while the sale of music over the Web is expected to be a huge industry, the technology is still in its infancy and consumers aren't rushing to download music online, especially amid a dearth of high-speed connections to the home. It'll likely be years before the companies derive substantial benefits from their alliance. Matsushita, a diverse manufacturer, makes stereo equipment under the brand names Panasonic and Technics. BMG Entertainment is a big producer of musical recordings under brand names that include Arista and RCA. Universal puts out recordings under labels such as Decca, Def Jam, Deutsche Grammophon, MCA, Motown, Philips, Polydor and Verve.