1. Online Music Industry: Battle for Standards
Diane Anderson
Tereasa Gandhi
Mike Hutchings
Talgat Imangaliev
BPOL 541 YA
Suresh Kotha

2. Introduction Background - Music & the Internet
Importance & Expectations of Standards
Why No Standards Today
The Players & Their Strategies
External Forces, Namely the “ RIAA”
Conclusion

3. Music [Middle English from Old French musique, from Latin musica, from Greek (he ) mousike (tekhne ), (art) of the Muses, , feminine of mousikos, of the Muses from Mousa, Muse; see men-1 in Indo-European Roots.]
What is Music?
Probably one of the oldest hobbies on the earth
What else is Music?
Arguable one of the most widely accepted things among humans
But really, what is Music?
“An aesthetically pleasing or harmonious sound or combination of sounds” – from Dictionary.com

4. Internet What is the Internet?
“The Internet, sometimes called simply "the Net," is a worldwide system of computer networks - a network of networks in which users at any one computer can, if they have permission, get information from any other computer (and sometimes talk directly to users at other computers).” – from Whatis.com
Flow of data and information

5. Online Music What is Online Music?
Music + Internet = Music, in the form of data, available online
Different standards of audio files (data) available for both download and streaming.

6. Standards: Importance & Expectations
Importance of Standards
Creates Network Externalities through positive feedback & interoperability
Lucrative to the Victor
Expectations of Standards
Nearly invisible
Fast & Usable
Widely used by music artists & recording labels

7. Why No Standards Today? Nascent Industry; Innovation abounds
Technology emerged and accepted by consumers
Limited Standards Established
Only focused on downstreaming technology
Not include codec, container for digital media or security structure
Not endorsed by Microsoft

8. The Players & Their Strategies
RealNetworks
Alliance with Microsoft
Interoperability with other technology
Emphasis shifting toward content provider
Microsoft
Alliance with software vendors, recording artists, ISPs, OEMs etc…
Pricing pressure
Apple & MP3
Open source code

9. External Forces: Big Five Record Companies (80% of all music sold)

10. RIAA to MP3: Drop dead!
To many musicians, the MP3 trading software isn't a revolution -- it's a rip-off.
RIAA: “No one is off our radar screen.”

11. Record Industry Solutions
EMI: Liquid Audio
Sony: Microsoft Media Technologies 4.0
Universal: AT&T a2b

12. Secure Digital Music Initiative (SDMI)
What is SDMI?
What is the relationship between RIAA and SDMI?
Is SDMI trying to squelch Internet music distribution?
How is SDMI trying to set standard for online music?

13. Questions? Comments? (Just do not ask to sing, please!)
Diane Anderson
Tereasa Gandhi
Mike Hutchings
Talgat Imangaliev
BPOL 541 YA
Suresh Kotha