.................................
To leave Commie, hyper to
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                           THE STANDARD'S
                         M E D I A  G R O K
           A Commentary on What the Press Is Reporting and Why
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                                       | http://www.thestandard.com |    
       
Tuesday, April  3, 2001


TOP GROKS
~~~~~~~~~
Speak Into the Mic, MusicNet 

Yesterday, Media Grok read about a press conference where an actual
product was unveiled, technical details were plentiful, and corporate
execs spoke as plainly and honestly as a small-town bartender.

Then we woke up.

The MusicNet gang - RealNetworks, EMI, Bertelsmann and AOL Time Warner
- hosted a typically uninformative press powwow on Monday. MusicNet
will supply some of the big-label tunes that have so far existed
online in only a less-than-legal manner, but only some of them. 
Two majors, Sony and Universal, haven't signed on to MusicNet, and 
they have a competing service called Duet. Some reporters missed 
this detail at first, but most latched onto it by Monday afternoon. 
"Three out of five isn't bad. But it's not necessarily good, either," 
wrote TheStreet.com's George Mannes.

The Seattle Times quoted RealNetworks President and COO Larry Jacob-
son talking about how hard it was to get even three majors on board. 
("You have to start somewhere," Jacobson said.) When asked whether 
MusicNet would pursue the missing two labels, Real honcho Rob Glaser 
said, "We invited a number of folks to participate. ... It's logical 
to assume that we talked to all five." Could you be a little more vague?

The mud didn't get any clearer on the technology front - not that
press conferences are usually rife with gearhead details. "One of 
the biggest questions is whether MusicNet will support archrival
Microsoft's Windows Media Audio technology for streaming and the
secure downloading of music," said News.com. The Washington Post 
said Glaser expects the technology to work by late summer. Someone 
asked an AOL Time Warner exec why he'd join a venture before the 
technology got finalized, and according to the Post, he answered, 
"I am holding Rob's first-born hostage." PR lesson No. 83: If 
dodging the question doesn't work, try making a bad joke.

Supposedly the timing of the MusicNet announcement - right before
Napster's Senate Judiciary hearing - was a coincidence. The Washing-
ton Post got an anonymous "industry source" to disagree, and Inside
reported that the principals "pulled near-all-nighters the last two
nights" to nail down the agreement. Timing aside, journos wondered
about MusicNet's cost, selection, antitrust implications, digital
rights restrictions and relationship with Napster. The Telegraph
grumbled that MusicNet's initial launch won't include Britain - or
anyplace else outside of North America. But isn't MusicNet principal
Bertelsmann based in Europe?

MusicNet could still be a big deal, so we'll give Rob Glaser a break:
Inside reported that Glaser first approached the major labels about a
subscription service back in 1995. He may mumble at press conferences,
but he sure is prescient. - Jen Muehlbauer

How MusicNet Heats Up the Digital-Music War 
http://www.thestandard.com/article/display/0,1151,23296,00.html?nl=mg 

RealNetworks Signs 3 Majors to Subscription Service 
http://www.thestandard.com/article/display/0,1151,23279,00.html?nl=mg 

Record Giants Join With RealNetworks 
http://seattletimes.nwsource.com/cgi-bin/WebObjects/SeattleTimes.woa/wa/gotoArticle?zsection_id=268448455&text_only=0&slug=realnetworks03&document_id=134280520
 

3 Music Firms in Net Deal 
http://www.washingtonpost.com/wp-dyn/articles/A29558-2001Apr2.html 

Music Industry Chases Online Dollar in the Napster Style 
http://www.telegraph.co.uk/et?ac=003329181426891&rtmo=0xei22Kq&atmo=tttttttd&pg=/et/01/4/3/cnap03.html
 

RealNetworks Venture May Find a Majority's Not Enough 
http://www.thestreet.com/tech/internet/1374104.html 

After Years of Talk, Major Labels Pull All-Nighters to Form
Subscription Service
http://www.inside.com/jcs/Story?article_id=27662&pod_id=9 

Record Labels Subscribe to Online Music Deal 
http://news.cnet.com/news/0-1005-200-5416207.html 


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