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Folk wisdom has it that it's wiser not to lock the gate after the horses have escaped. The Secure Digital Music Initiative, a consortium of 140 music, software, and hardware companies, has taken that adage to heart. In a significant departure from its original intent to block the distribution of free music on the Internet, the Secure Digital Music Initiative announced in the last week of June that its forthcoming specification for music software and hardware will accommodate the "legacy content" already in existence. There are reportedly as many as 500,000 songs available in the MP3 format, and they will continue to be available even as new, robustly encrypted music comes onto the market.

The high-end audio industry may be in a slump, but the public's appetite for recorded music appears as voracious as ever. MP3, the hottest upstart in the digital audio market, got a big boost in late June when Diamond Multimedia Systems Inc. announced the next generation of its popular Rio digital music player, the Rio PMP 500, due to arrive in stores this fall.

Are audiophiles and recording engineers natural adversaries? From the many slings and arrows hurled back and forth between the camps, it would certainly seem so. Robert Harley asks, "But are recording engineers less concerned about sound quality than are audiophiles? If so, why? Isn't someone who has devoted his life to recording music more caring than the hobbyist audiophile? If not, why not?" Read his analysis of the issues in "A Clash of Values?" Also included is a lively volley of readers' letters.

The National Association of Recording Merchandisers (NARM) has released its Annual Survey Results for the 1998 business year, indicating that gross dollar volume for all music products grew by 10%, to $9.69 billion, with the CD market (83.3%, or $8.1 billion) continuing to build on its dominance. The report reveals that DVD sales "literally exploded in 1998," up a staggering 400% to $259 million.

Earlier this month, DirecTV announced that it is investing $50 million in XM Satellite Radio in an effort to capitalize on direct satellite-to-receiver broadcasting technology, which is intended to provide listeners in the car and at home with up to 100 channels of music, news, and entertainment available in North America. Additional XM investors include General Motors, Clear Channel Communications, and a private investment group.

The MP3 audio format has been rapidly gaining a solid reputation in the last several months. Portable products such as Diamond Multimedia's Rio have hit the market, and websites (typified by MP3.com) have gained financial success. (See related story.) But one area that has so far lagged is MP3-based playback and recording equipment for using the files at home without moving a computer next to the stereo.

Is there a computer in your audio future? Meridian thinks so. An expensive new flagship disc player hints at things to come at more affordable prices. Working at the far edge of the digital playback frontier, the UK company has just announced its 800 Reference, a new combination CD/DVD player, built like a computer, that takes digital audio and video playback to a new level. The player "sets the bar for DVD and CD reproduction," according to a June 16 press release.