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According to a recent report released by Information Technology researchers Frost">http://www.frost.com">Frost & Sullivan, the world Internet audio market generated revenues totaling $42 million in 1998, which dwarfs the 1997 revenues by 1516%. The report predicts that this market will continue growing at a healthy rate, achieving an increase into the triple percentage digits by the end of 1999.

Yet another variation on restricted-use compact discs appeared last week, when Phoenix-based SunnCommhttp://www.sunncomm.com/">SunnComm; announced an agreement with Nashville's Sunbird Records that also includes revenue sharing. Sunbird says it is preparing to release country music singer Len Doolin's Once in a Lifetime on November 1 using SunnComm's new "Expanded Experience CD" (CD3) technology in an effort to restrict use of the disc on computers.

Music buyer beware: SunnCommhttp://www.sunncomm.com">SunnComm; announced last week the dubious milestone that it had shipped over one million restricted MediaMax audio CDs in March and expects to beat those numbers in April. The MediaMax M4 suite of "Digital Content Enhancement" technologies is built using the Microsoft Windows Media 9 Series platform.

Ithaca, New York-based Netdriveshttp://www.netdrives.com/">Netdrives; says it has introduced the world's first MP3 player capable of playing MP3 audio files without using a personal computer. Called the Brujo (Spanish for "wizard" or "sorcerer"), the machine has a built-in CD player that can play more than 11 hours of MP3 music. The device can be connected directly to any home stereo system, and also works as a normal CD player.

MP3 players are going to hit the market in waves this fall, and manufacturers will be trying hard to make their products stand out from the pack. Several companies are bringing out combi MP3/CD portables, including consumer-electronics newcomer Pine">http://www.pineusa.com/">Pine Technology USA, of Fremont, California. Pine has long experience in the manufacture of motherboards, modems, and other computer components. The company is now shipping its $189 D'Music SM-320V MP3 portable. Its $219 model SM-320 includes an FM tuner. Both players have 32Mb of embedded solid-state memory and will accept a 32Mb SmartMedia card. Pine's players operate on two AAA batteries, and can double as voice recorders with up to 4.5 hours of recording capacity. Retailers include Fry's Electronics and Office Depot.

MP3, the popular and controversial Internet music format, took a big step toward legitimacy last week. Z Company, which operates San Diego-based MP3.comhttp://www.mp3.com/">MP3.com;, announced that it had attracted $11 million in venture capital from idealab! and Sequoia Capital. Z Company will change its name to MP3.com Inc. to reflect the company's core business interests, said president Michael Robertson.

Recordings more than 100 years old can now be heard on the Internet, thanks to a new">http://www.mp3.com/oldest">new program established by San Diego-based startup MP3.comhttp://www.mp3.com/">MP3.com;. Among the sonic treasures is Thomas Edison narrating a "phonographic trip around the world" recorded in 1888. The site offers copies of Edison cylinder recordings and early 78 rpm discs, all available for free.