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The Download Challenge

Love it or hate it, MP3 users are a huge new market, as yet untapped by the music industry. Portable digital compressed-audio players, whether employing Flash memory or compact hard drives à la Apple's iPod, are estimated to begin reaching critical-mass sales numbers around 2006, with an installed base of 24 million units by 2007. Most observers agree that this dramatic growth has been driven, in large part, by the vast quantity of no-fee music that is available in the format, as well as the players' ease of use and flexibility.

The Downloading Myth

The music industry repeatedly points to online file trading as the explanation for its declining market. But annual sales are still well ahead of 1998's figures and several analysts note that when you take into account the economic downturn, increased competition for entertainment dollars, high CD pricing, uninspiring new music, and consumer resistance to copy protection, those negative numbers should really be">http://www.stereophile.com/news/11441/">be far worse.

The Ebb and Flow of Internet Music Distribution

Looks like it might be a while before a profitable formula jells for selling music over the Internet. News this week indicates that one of the largest music retailers, Tower">http://www.towerrecords.com">Tower Records, is finally ready to challenge the market, while online distribution pioneer N2Khttp://www.n2k.com">N2K; will be scaling back operations until things steady a bit.

The ELF Foundation

The Elf">http://www.elfsystems.org">Elf Foundation's accomplishments are extraordinary. In just four and a half years, the nonprofit organization has facilitated the design and construction of more than 40 Rooms of Magic. These are private entertainment theaters in medical facilities for children: hospitals, as well as centers for autism, abused children, and kids with long-term disabilities. And none of the design work or state-of-the-art equipment for these children's oases costs the host facilities a cent.

The Empire Strikes Back

We all know the refrain. Classical music is losing its audience. With shorter attention spans, the ascent of the iPod, a penchant for music (and spoken word masquerading as music) in the background, and the submergence of audio by home theater, fewer and fewer people in the United States are being exposed to art music of the past and present.

The End of "Out of Print"?

Last Thursday, Virgin">http://www.virgin.com/">Virgin Entertainment Group announced an agreement with RedDotNethttp://www.reddotnet.com/">RedDotNet;, a Digital on Demand company, that Virgin says will allow its customers to download music and create custom CDs, DVDs, and MiniDiscs in-store. Virgin describes the deal as "a revolutionary development heralding a new wave of music retailing." As part of the agreement, Virgin will become a shareholder in Digital on Demand, RedDotNet's parent company.

The End of Analog As We Knew It?

First with CD players, then digital preamps, and recently amplifiers, digital technology has ground inexorably through the audio chain. Several companies have been developing ways to shorten the analog path or remove it entirely. Meridian's">http://www.meridian.co.uk/">Meridian's "digital" loudspeakers come to mind, as well as the amplifiers from manufacturers Spectronhttp://www.spectronav.com">Spectron; and TacThttp://www.tactaudio.com">TacT;.

The End of the Audiophile Nightmare?

Last week, Cirrus">http://www.cirrus.com">Cirrus Logic unveiled two new Crystal digital-to-analog converters that the company says will support both dueling high-definition audio standards: DVD-Audio and Super Audio CD (SACD). As a result, the new DACs should enable the creation of universal DVD players for both the mass and high-end audio markets. The new DACs are the CS4397 "SuperDAC," which the company describes as a "high-performance audio DAC on a single chip" with 120dB dynamic range performance; and the CS4391, a lower-cost DAC also supporting DVD-Audio and SACD and sporting a 108dB dynamic range.

The Ever-Mutating CD

Although the CD was successfully released into the music industry gene pool 20 years ago, several companies are still tinkering with its DNA in order to assist record labels in restricting how consumers use their discs.

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