Barry Willis

Merger mania in high-end land: Loudspeaker manufacturer <A HREF="http://www.halesdesigngroup.com/">Hales Design Group</A> and digital audio manufacturer <A HREF="http://www.wadia.com/">Wadia Digital Corporation</A> are joining forces to create what the companies' executives are calling "new digital products for the new millennium." The announcement was made February 14 at Wadia headquarters in River Falls, Wisconsin.

Satellite radio got a boost toward wider market acceptance on February 16, when <A HREF="http://www.siriusradio.com/">Sirius Satellite Radio</A> and <A HREF="http://www.xmradio.com/">XM Satellite Radio</A> announced an agreement to develop a unified standard for satellite radios. The current batch of satellite receivers can pick up transmissions from one of the providers, but not both. The next generation of receivers will expand the technology's reach by enabling reception of both companies' broadcasts.

This spring, downloadable digital music from <A HREF="http://www.emigroup.com/">EMI</A&gt; may begin popping up everywhere, if a new arrangement with <A HREF="http://www.supertracks.com/">Supertracks</A&gt; goes as planned. The two companies have created what they believe is a secure system for downloading music to computers, portable players, and to CD burners at kiosks in shopping malls. The news follows by only a couple of weeks an announcement that <A HREF="http://www.warnermusic.com/">Warner Music</A> and EMI will merge their operations under the larger umbrella of AOL Time Warner.

The inclusion of "hyperlinks" in music CDs that direct music lovers to Sony-affiliated online sales sites has angered the <A HREF="http://www.narm.com/">National Association of Recording Merchandisers</A>, a trade organization representing more than 1000 music retailers. NARM has filed suit against <A HREF="http://www.sonymusic.com/">Sony Music Entertainment</A> and Sony Coporation of America, seeking an injunction against the use of hyperlinks and charging that the practice of including the links in CDs is a violation of the Sherman Antitrust Act. Asking retailers to sell discs with such embedded links is the "equivalent of asking Tower Records to put posters for rival Musicland in their stores," said NARM president Pamela Horovitz.

Blaming a falloff in CD sales on the popularity of CD burners, <A HREF="http://www.bmg.de/">BMG Germany</A> recently issued approximately 100,000 copy-protected discs in an attempt to thwart the problem&mdash;and had to take a substantial portion of them back because consumers said the discs wouldn't perform in car players and in some home audio systems.

The FM radio spectrum could soon get a lot more crowded, thanks to rules recently adopted by the <A HREF="http://www.fcc.gov/">Federal Communications Commission</A>. New stations with broadcasting power of between 1W and 100W will be cropping up soon in communities all over the country, provided they don't interfere with existing stations, and provided they remain strictly noncommercial.

Where Sony goes, the electronics industry follows. And Sony is going on the Internet&mdash;not merely with product information and links to dealers, but with sales direct to consumers. The announcement was made late in January by <A HREF="http://www.sony.com/sel">Sony Electronics</A> president Teruaki Aoki. "We cannot neglect the customers' viewpoint," Aoki said, acknowledging that serving consumers is a higher priority for the electronics giant than protecting dealers.