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Audiophiles Scoff, but Rio MP3 Players Proliferate

MP3 may be under constant attack by audiophiles, and by music-industry attorneys in the courts, but the format shows no indication of disappearing. Santa Clara, CA–based S3http://www.s3.com/">S3;, maker of the Rio portable audio player, has reason to believe that MP3 has plenty of growth potential. The company is going after licensees for the Rio to make knockoffs, and has plans to produce Rio-type players for home and car audio this summer.

Toshiba Announces E-commerce Plan

In early June, Toshibahttp://www.toshiba.com/">Toshiba; will institute a new retailing program that embraces the Internet but favors traditional retailers. The electronics manufacturing giant will have "a defined group of Internet retailers" that will be built on a base of traditional retailers, according to an announcement made in late April. Later, the program will be expanded in stages to include Internet-only retailers. The announcement follows an">http://www.stereophile.com/news/10662/">an announcement by Sony Corp. late in January that Sony would begin direct Internet sales this year.

Sony, Universal Join Forces for Subscription Music Service

It's mating season for entertainment-industry giants. Sony">http://www.sonymusic.com/">Sony Music Entertainment and Universal">http://www.umusic.com/">Universal Music Group are in talks to develop a jointly operated subscription music service for the Internet, according to a report the two companies issued in the first week of May. The news followed by only a week an announcement of a possible">http://www.stereophile.com/news/10729/">possible merger between record clubs Columbia House and BMG Music Club.

DVD-Audio Wishful Thinking?

In hopes of stoking the multichannel DVD-Audio engine, Burr-Brownhttp://www.burrbrown.com">Burr-Brown; announced last week the PCM1604 audio digital-to-analog converter, which they describe as a high-performance, 6-channel audio DAC featuring 24-bit capability and 192kHz sampling, for use in a "wide variety of multichannel audio applications."

Judge to MP3.com: "Guilty as Charged"

The roller-coaster fortunes of MP3.comhttp://www.mp3.com/">MP3.com; took a downturn April 28, when US district judge Jed S. Rakoff found in favor of the Recording">http://www.riaa.com/">Recording Industry Association of America in its copyright-violation suit against Internet music site MP3.com. Investors in the once–high-flying startup immediately began unloading shares of the company's stock, which had dropped 40% by the end of the trading day.

Consumer Electronics Giants Post Mixed Results

It's been an up-and-down week for consumer-electronics companies, as revealed by recent earnings reports surfacing around the globe. First, the bad news: Sonyhttp://www.sony.com">Sony; reports that its profits fell 32% in the latest fiscal year, and cites the strong yen for depressing the value of the consumer-electronics and entertainment company's overseas earnings.

USA Digital Radio Coalition Makes Technical Progress

Progress toward a working digital radio technology took a big step forward in April with the addition of Lowpass">http://http://www.lowpassprototype.com/">Lowpass Prototype Inc. to the development team. According to an April 27 press release, USA">http://www.usadr.com/">USA Digital Radio, Inc., a privately held digital radio technology company owned by the nation's largest radio broadcasters, has added the manufacturer of radio-frequency systems for radio and television transmission to its coalition to develop and commercialize digital AM and FM radio.

Napster Still Under Siege

The Napster saga continues. As reported">http://www.stereophile.com/news/10725/">reported last week, software maker Napsterhttp://www.napster.com">Napster; and several colleges were looking at a likely court battle, instigated by music group Metallica and others attempting to prevent their songs from being distributed via MP3 audio files without official consent or payment of royalties. After Metallica announced its suit, rapper Dr. Dre also jumped in, giving Napster until last Friday to remove links to his work.

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