Mp3 Support Snowballs - Bandwagon Or Revolution?

Computergram International, Feb 8, 1999

US independent record label Rykodisc has expressed its support for the controversial music file format MP3 by allowing a section of its catalogue to be sold via Goodnoise Corp's web site. It becomes the largest record company to so far support the format, which has been criticized by the Record Industry Association of America for simplifying music piracy.

New media company Solutions Media Inc of San Diego announced almost immediately that in light of this commercial support it is to release software it claims will "make it possible for anyone to convert their music into MP3 and distribute it over the internet." This is the latest chapter in the MP3 saga, which has been running since MP3 became popular several years ago. MP3 stands for Motion Picture Experts Group (MPEG), Audio Layer 3, an easily distributable music file format with near-CD quality sound. In December, the RIAA announced a Secure Digital Music Initiative, to combat MP3 piracy by creating a digital music standard with copy-protecting 'watermarks'. The SDMI has so far attracted the attention companies such as Lycos Inc, who last week agreed to join after launching an MP3 search engine that did not distinguish between legal and illegal files. User support for MP3 is at such a level that it is, according to Lycos, the second most requested internet search word after 'sex'. In the US, Diamond Multimedia produces personal stereo style devices for the format, and UK company Empeg Ltd is to start mass-producing 500-album capacity MP3 car stereos in March + E*TRADE STRUGGLES WITH DOWNTIME, NY STATE INVESTIGATES With E*trade recording its third trade outage in three days, the New York state attorney general Eliot Spitzer has said he intends to investigate whether net-based stock brokerages are lying to customers about what their systems can do. Spitzer says his office has received "dozens of complaints" from consumers using online brokerage services. "The public knows that there are always risks involved in investing in the stock market," said Spitzer in a statement, "but part of that risk should not include questions about whether trades will be executed promptly or whether online brokerage firms can deliver on the services that they've promised." Ironically, E*trade's software difficulties have shaved nearly $20 off its own stock price in the space of a week. Shares closed on Friday at $48.93 3/4. + NETDIALOG CLAIMS EARLY SUCCESS IN WEB CUSTOMER SUPPORT NetDialog Inc, the San Mateo-based customer management company has secured what it describes as five bellwether accounts in its first two months of general availability for its ICare software, including fiber channel switch company Brocade Communications Inc and IntraWare, the internet software and information company. There are three other larger accounts, promises VP marketing Bill Bondurant, but he cannot name them just yet. ICare monitors users' activity on web sites and intervenes by providing on- screen help boxes into which the users types requests for information. There are levels of support from self-service through to a conversation with a live agent (09/18/98). The firm has also signed Aspect Telecommunications and is demonstrating integration with its CTI system at an online customer management show this week. Bondurant said the company is going to port its NT-only software to Solaris at some point and is talking to Hewlett-Packard Co about doing the same for HP-UX, though there's no commitment to do that yet. He adds that the company is geared up for the expected voice-over-IP explosion at some point in the near future and is ready to support that transport mechanism as soon as there is sufficient volume. The company has recently added Mike West, former president and COO of Octel Communications Corp and KB Chandrasekhar, co-founder and chairman of Exodus Communications to its board.