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ICON66 – Volume 2

MP3 – Music on the Net

MP3, and the other compression technologies that have emerged, are one of the few truly revolutionary developments of the Web.

Before the advent of the phonograph, the only physical objects connected with music were the instruments and the sheet music used to make it. Music was always a live experience, and most professional musicians could make a living from it. Then the music industry was born. Music was frozen into chunks, commoditised and sold in shops. MP3, and the other compression technologies that have emerged, are one of the few truly revolutionary developments of the Web - taking music away from the marketing of boxes and back towards a more direct link between artist and audience. A digital recording of a piece of music can be sufficiently compressed into an MP3 file to make it a practical proposition to download it from a website and play the near-CD quality music using a shareware player on your computer.

The first manifestation of the revolution was the eponymous site MP3.com. The site achieves huge traffic by offering anyone with a recording the chance to upload their music so that the rest of the world can download it and play it on their PC. Because of the millions of, mostly young, people flocking to the site, MP3.com now enjoys a valuation of billions of dollars.

There are now many sites offering a similar service up and running on the web - packed with exciting new music across all musical styles - and much of it is even available for free! There are dedicated hip-hop sites, sites focussed on new independant music, even sites that endeavour to offer something for everyone. Not all of these businesses can survive and the competition demands ever more ambitious marketing campaigns, or effective site design structures, to keep ahead of the pack and keep dedicated audiences coming back.

Now the major labels have been forced to sit up and take notice. The Warners/AOL/EMI mega merger confirms that the future of the music industry is on the web. The next generation of web music business, one with multiple revenue streams (and thus a sustainable business model) that does everything a record label should do by using the economies and market aggregation powers of the web, will soon be with us.

One such business Floot.com has just announced a joint venture with Freeserve, the UK's leading internet service provider, who will take an equity holding in Floot.com. The site launching this Spring will provide back catalogue music of every genre for download, or customised CDs, whilst also signing and developing new talent. "The internet is the future of all media businesses", commented William Pryor, Floot.com's MD and founder. "Combining Freeserve's 1.675 million active registered users with Floot.com's business model is going to make us a winner and will deliver considerable commercial benefits to both music buyer and musicians." Freeserve's Simon Cook added "Through our marketing and distribution deal, combined with an equity holding, we are able to kick start what promises to be a most interesting business. The internet will transform the music industry, and Floot will be at the forefront of these developments."

EXPERIENCE ONLINE MUSIC

A STEP BY STEP GUIDE

THE MUSIC INDUSTRY WILL NEVER BE THE SAME...
GET A FREE MP3 PLAYER
1. Open web browser, enter address: http://www.real.com/jukebox.
2. Look for "Real Jukebox Basic". Click on "Free Download".
3. Follow the instructions to download the player.
4. When the player has downloaded, double-click on it to install it.
5. Follow the installation instructions.

PLAY MUSIC ON-LINE
1. Open your web browser and enter the address: http://www.mp3.com
2. Choose a genre you like from the "Free Music & Charts".
3. Choose a title, and click "Lo Fi: Play" to the right of it.

DOWNLOAD MUSIC
1. Open your web browser and enter the address: http://www.mp3.com
2. Choose a genre you like.
3. Click on a title. - You will be taken to a page of the artist's work.
4. Choose a track, and click download - save it somewhere convenient.
5. To play the track, double click on it.

URL: www.floot.com

URL: www.mp3.com

Download a pdf of this article >>

Sector Expertise

"Having been recommended to meet with ICON, we were immediately impressed by James' appreciation for our business, his understanding of the funding market as well as his knowledge of the key institutions and individuals that we should speak to.

He worked with us to develop our strategy and played an instrumental part in liaising between management, incumbent investors and prospective new investors to help us close a new round of funding in under 3 months from start to finish. I would definitely recommend ICON."

Mike Deacon, Inetec

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