The MP3 Dilemma: The Debate Continues
"Behind every unauthorized download there are a few pennies in missed
royalties for songwriters and record labels." (The New York Times, 4/5/99,
Neil Strauss)
The clock is ticking. As the Secure Digital Music Initiative (SDMI), a
consortium of computer companies, electronics manufacturers and major record
labels, hasten to deliver their specifications for secure delivery of music,
video and digital content through the Internet to the electronic
manufacturers for a deadline of June 30, some of these same manufacturers are
continuing to release non-secure technology.
A case in point is RealNetworks' system, Real Jukebox, designed to let
consumers copy, store and play audio CDs on personal computers. It enables
consumers to copy their CDs to either MP3 or RealNetworks' G2 digital music
format. Real Jukebox conforms to copyright law by means of an electronic
"tether" that restricts digital copies of the audio CDs to the hard drive of
the user's personal computer. "People can turn the tethering feature off,
but we remind them that they can't legally take a file and mail it to a 100
friends," says Rob Glaser, chairman and chief executive of RealNetworks in
an interview with the New York Times.
This support of MP3 by RealNetworks illustrates that technology companies
will not wait for the recording industry to catch up. While they respect
the record labels' intentions, they also need to acknowledge the market
demand for MP3. This demand for distribution of music through the Internet
has spread from home PC users and college students to small record companies
and major recording artists who see the enormous potential in reaching fans.
Alanis Morissette, Tom Petty, and the Beastie Boys are among the growing
number of established acts tapping into a new web audience through legal
downloads offered by the web site MP3.com in the unprotected MP3 format.
Some labels, such as Capitol and Virgin records routinely offer songs on
their official label sites as a way to promote music and offer a legitimate
alternative to pirated MP3 files. "We know that we can't stop piracy
online, but at least this way we have some control over how our artists'
music is played," says one new-media executive at a label. "I'd rather have
the music fans get it from our site than elsewhere."
Understandably, the major labels are eager to tap into this market and are
aggressively working with technology companies to develop secure formats.
In fact, Universal Music Group will begin selling music by download this
fall. With the goal of having authorized players onto store shelves for the
Christmas season, it must be decided if these new devices would be able to
play not just music recorded with a new secure standard, but also recordings
made with the MP3 format. A compromise to this would be a "sunset model"
which would allow players to initially play unprotected MP3 files but would
stop playing them after a decided upon period of time. This assumes that
future formats with the new security standard will supplant MP3.
More than 110 companies involved with the SDMI met for two days at the end
of March. During this third meeting of the Portable Device Working Group,
28 companies proposed technology solutions to implement the functional
requirements of the portable device architecture.
"The majors are going to be aggressively in (the online world) in a big
way," RIAA President Hilary Rosen said. She vows not to let the
traditional music industry be left behind by cyber-savvy competitors, the
way major networks miscalculated the popularity of cable TV. "The record
companies are not going to make that mistake with the Internet."
Update: SDMI announces standard for new portable devices.
Click here for details!
"Free Web Music Spreads From Campus To Office",
The New York Times, April 5, 1999 (Neil Strauss)
Point Your Browser Tip: http://www.nytimes.com/
Extra Cyber Tip: "keyword" search using name of article above.
"SDMI On Track", RIAA Fast Tracks, April 13, 1999
"I.B.M. Joins RealNetworks On Format For Net Music",
The New York Times, April 13, 1999 (Reuters)
Point Your Browser Tip: http://www.nytimes.com/
Extra Cyber Tip: "keyword" search using name of article above.
[Editor's Note: We highly recommend this article to our readers]
"eMusic Giants Fight A Corporate War Online",
CNN, April 14, 1999 (Lessley Anderson)
Point Your Browser Tip: http://www.cnn.com/
Extra Cyber Tip: keyword search: "Music giants fight a corporate war online"
"Sony And IBM Create Alliance On Internet Music",
The New York Times, April 16, 1999 (Matt Richtel)
Point Your Browser Tip: http://www.nytimes.com/
Extra Cyber Tip: "keyword" search using name of article above.
"Movie Makers Shudder As Illegal copies Of Hot Films Spread On The Internet",
CNN interactive CNN.com, April 23, 1999 (Associated Press)
"Pirate-Proof Music On Web? So Far, That Does Not Compute",
The New York Times, April 24, 1999 (Neil Strauss)
Point Your Browser Tip: http://www.nytimes.com/
Extra Cyber Tip: "keyword" search using name of article above.
"New System For PC Music Stirs Recording Industry's Piracy Concerns",
The New York Times, May 3, 1999, John Markoff
Point Your Browser Tip: http://www.nytimes.com/
Extra Cyber Tip: "keyword" search using name of article above.
"MP3 Audio Enters The Mainstream",
CNN interactive CNN.com, May 4, 1999 (L.A. Times)
"Digital Nation: RIAA Turns A Corner On Net Piracy",
Music News Of The World, May 13, 1999 (Chris Nelson)
"Thank U, MP3",
Rolling Stone, June 10, 1999 (Eric Boehlert)
