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Technology Stocks : GDNO - Goodnoise, the next KTEL? -- Ignore unavailable to you. Want to Upgrade?


To: The Prophet who wrote (138)5/13/1999 8:50:00 AM
From: Warner Buffett  Respond to of 158
 
GOODNOISE OFFERS WORLD/FUSION CATALOG IN THE MP3 FORMAT
Signs Agreements with World/Fusion Music Labels - City of Tribes and Baraka
Foundation

REDWOOD CITY, Calif., May 13 /PRNewswire/ -- GoodNoise Corporation (OTC Bulletin Board: GDNO), the Internet's leading seller of downloadable music, has expanded its offering to include a collection of world/fusion music from leading independent labels. GoodNoise today announced it has signed agreements with City of Tribes, Inc., an innovative world/fusion label, and Baraka Foundation, which offers a catalog featuring projects in the realms of dub, hip hop, spoken-word, electronic, and world.

Albums and individual tracks from City of Tribes and Baraka Foundation are available today for download in the MP3 (MPEG1, Layer 3) format at www.goodnoise.com. Albums can be purchased for $8.99 and standard length tracks are available for $.99.

"The promise of the Internet for music fans is the ability to access a much wider variety of music than through existing physical channels," said Gene Hoffman, president and CEO, GoodNoise Corporation. "Over the past several years, there has been building momentum and demand for music that fuses multiple genres and cultures. We're thrilled to partner with some of the most innovative labels and artists in this category to offer Internet music fans an incredible collection of downloadable world/fusion tracks and albums."

GoodNoise is a premier destination for high-quality downloadable music in the MP3 format. GoodNoise offers an extensive catalog of more than 100 artists and 1,300 tracks in a variety of genres. Through license agreements with leading independent record labels such as Rykodisc, spinART, and Ubiquity Recordings, and relationships with artist such as Frank Black and They Might Be Giants, GoodNoise has become the leader in electronically distributed music.


About City of Tribes
City of Tribes (www.cot.com) is a rarity in the current climate of
the music business: a company built upon the creative vision of a
collective of musicians, artists, and producers. Originally conceived
in 1992 by worldbeat musician Patti Clemens to release her own work and
that of a small circle of primarily Bay-area based musicians creating
what Billboard described as "super-heated global fusions," City of
Tribes has since achieved an international reputation as one of a
handful of independents who consistently support leading edge "global
music" sensibility. Currently home to such fourth world luminaries as
Trance Mission, Stephen Kent, Ring (featuring Patti Clemens),
Stellamara, and Ali Khan, the label has challenged established notions
of world, electronic, and new music and has engendered a hybrid
atmosphere allowing musicians to blur the traditional and perceived
boundaries of their various styles. The results are stunning: enduring
music that URB recently praised for "expanding the boundaries of global
electronic music to extraordinary reaches."
"We've been looking for the right partner with whom to enter the download arena for some time now," said Pamela McCleave, COO, City of Tribes, Inc. "GoodNoise has allowed us the blended power of technology and representation alongside a number of peer labels exploring complementary sonic terrain. It's a healthy climate for all of us, and an absolute wonderland for the adventurous music seeker."


About Baraka Foundation
Baraka Foundation (www.baraka.net) is a collective of artists and
musicians from different parts of the world who have organically joined
together for the purpose of fusing the vast cultural and musical forms.
The label's initial releases offer the best and most interesting
projects in the realms of dub, hip hop, spoken-word, electronic, world,
and cutting-edge culture & media. Baraka strives to bridge the
artificial, man-made gaps between artist and label, music and visuals,
linear and non-local, science and magic. The label's growing ranks
include mystics, students, artists, musicians, pranksters, programmers,
immigrants, scholars, promoters, Sufi's, writers, and more.
Some of Baraka's highlights include "Jilala," a historic album of Moroccan Sufi trance, as recorded by Paul Bowles and Brion Gysin in 1965; "Pistel," a modern electronic classic featuring Mark Pistel (Meat Beat Manifesto, Consolidated) and Jack Dangers (Meat Beat Manifesto); "Harris," the experimental psychedelic hip-hop release by Mystic Fire filmmaker Morgan Harris, which features guest appearances by Ad Rock (Beastie Boys) and Mackie (Bad Brains); and Qaballa Steppers "Passage At Noon," a fusion of dub, hip-hop, jazz, and drum 'n bass featuring Sensational (Jungle Bros), Dr. Israel, and Marc Ribot. Baraka and GoodNoise plan to release more world music in the near future (Morocco, Cuba, Haiti, Persia, Philippines) as well as some of the best in underground hip-hop, including Jamalski (Boogie Down Productions) and Various Blends (Feat. DJ Apollo from Invisible Skratch Piklz and Peanut Butter Wolf).


About GoodNoise
Since it was founded in January 1998, GoodNoise Corporation has
established itself as a clear leader in the rapidly expanding market
for downloadable music. Through relationships with artists and license
agreements with leading independent record labels, GoodNoise has
emerged as the premier website for the sampling and purchasing music in
the MP3 format, which has become the de facto standard in the digital
distribution of music with millions of users around the world.
GoodNoise.com features a constantly expanding catalog of music and
offers music fans complete albums for $8.99 or the ability to purchase
individual tracks for $.99. GoodNoise recently completed the
acquisition of EMusic.com. In the near future, GoodNoise plans to
change the primary brand of its downloadable music website to
EMusic.com. GoodNoise is based in Redwood City, California.

GOODNOISE and EMusic are trademarks of GoodNoise Corporation.

NOTE: Any forward-looking statements contained in this release
involve a number of uncertainties, risks, and other factors which may
cause the actual results, performance, or achievements expressed or
implied by such forward- looking statements to materially differ.
Factors that could cause actual events or results to differ materially
include, among others, those set forth in the Company's S.E.C. report
on Form 10-SB, which may be accessed via the Internet from a link on
the following page: goodnoise.com.
SOURCE GoodNoise Corporation



To: The Prophet who wrote (138)5/13/1999 9:38:00 AM
From: a.m. fisher  Read Replies (1) | Respond to of 158
 
SMARTMONEY.COM: Will Digital Music Stocks Rock The Web?
By PAUL R. LA MONICA
Dow Jones Newswires
NEW YORK -- The digital music area is shaping up as the next battleground in the world of e-commerce. The controversial technology known as MP3 has the music business up in arms because consumers can use MP3 to transfer copyrighted music from CDs to the Internet where it can be downloaded for free.

On Wednesday, Sony (SNE) announced that it will collaborate with Microsoft (MSFT) to sell virtual singles over the Internet. Earlier this month, Real Networks (RNWK) unveiled its RealJukebox downloadable music software.

Last week, Liquid Audio, which makes encrypted downloadable music software that makes it difficult to pirate existing music, filed to go public. The company includes big-time venture capital firm Hummer Winblad, Intel (INTC), Metromedia (MMG) and Paul Allen's Vulcan Ventures as its four largest investors. Some market observers think this IPO could put pressure on MP3.com, the most prominent site featuring the popular MP3 technology, to soon seek the IPO route as well. MP3.com features a multitude of free music from relatively obscure musicians and some big-name artists.

So far there aren't that many ways for investors to cash in on the craze. There's online music record label and retailer GoodNoise (GDNO) a stock that trades on Nasdaq's bulletin board. The stock has more than tripled so far this year but it is volatile, thinly traded and lacks analyst coverage. Audiohighway (AHWY), another site that allows consumers to download audio files, went public last year and has doubled from its offering price, but is 50% off its high. Then there's poor Diamond Multimedia (DIMD), which makes the portable MP3 player Rio. It has not been helped by its digital music business as its stock has plummeted nearly 30% so far this year.

The truth is, the digital music business may never reap big rewards for investors. According to Forrester Research, digital music sales will increase substantially in the next few years. But sales are still only expected to be $1.1 billion by 2003, about 7% of total music sales. Compare that to Forrester's 2003 estimate of about $7 billion for online CD sales at sites like Amazon.com (AMZN) and CDNow (CDNW) and it does seem like the digital music hype is a little overblown.

Certainly digital download market share will continue to increase. A study by the Internet Underground Music Archive estimates that 20% of music retail revenues will come from digital sales by 2007. That's a sizable gain but still not enough to herald the death of the music business as we know it.

Because the music industry is so concerned with piracy, competition to come up with some sort of secure music standard is intensifying. In addition to Sony and Microsoft, you have AT&T (T), which makes a2b encrypted software and is working with the Universal and BMG record labels. Then there's IBM (IBM), which is testing a format for all five major music labels.

You can argue all you want about what format will ultimately win out: MP3 is clearly the leader right now since files in this format can be copied easier and download faster. But the sound quality for Liquid Audio and a2b is slightly better, which some say give these formats an edge. Steve Grady, GoodNoise's vice president of marketing, says since the MP3 technology is the most popular with consumers right now, that is why GoodNoise, which is in the process of changing its name to the more Internet sounding Emusic.com., primarily features MP3 files for download. But he maintains that it does not matter what format wins out as long as digital music becomes an accepted form of retail.

That may be true but ultimately you have to wonder if the smaller sites can succeed if the music industry heavyweights make it tougher for them to feature digital music of the most popular artists. Sony's announcement on Wednesday doesn't bode well for smaller competitors. Sure, fans of non-mainstream music might have no other option but MP3.com to buy or listen to the music they want, but is that enough business to ensure long-term success? "MP3.com has 10,000 musicians but nobody recognizes them. What they've created is this chaotic flea market," says Mark Hardie, an analyst at Forrester Research.

Personally I'm rooting for the smaller companies. The oligopolies controlling record labels and radio stations have certainly foisted a lot of imitative crap on the consumer over the last few years. It's refreshing to have a site where a music lover could go to check out unsigned, unknown bands as opposed to waiting for what some A&R stiff at Sony thinks is the next big thing. Nonetheless, investors should realize that enthusiasm about this cool new consumer application of the Internet does not necessarily mean digital music will be an investment bonanza.

Just put this "craze" in a little perspective. With so many major companies scrambling for such a small piece of business right now, why should investors get excited when there's no clear-cut winner? It seems that too many people are trying to make the emergence of digital music an overly simplistic logical issue: If digital music catches on then the traditional music business as we know it must die. But not many people are thinking about this scenario: Isn't it possible for digital music sales to increase the size of the overall market without making a significant dent on brick-and-mortar and online sales of mainstream music by giving consumers more choices than they have now?

As much as I am rooting for the MP3.coms of the world to stick it to the corporate music establishment, I am not that optimistic. Eventually, the power and most of the profits will probably remain in the same hands it does now: the big record labels, with the help of major tech companies like IBM and Microsoft. I think it would be a mistake to misinterpret the music industry's slothfulness to mean that they will be hopelessly left behind in the digital revolution. And it would be a bigger mistake to invest in the smaller players of the digital music area that might not survive a shakeout.