Whether or not online file-trading has had an effect on compact disc purchases <A HREF="http://www.stereophile.com/news/11643/">positive</A> or <A HREF="http://www.stereophile.com/news/11679/">negative</A>, a new report published by the <A HREF="http://www.ifpi.com">International Federation of the Phonographic Industry</A> (IFPI) indicates that the real problem facing the music industry worldwide is that fewer and fewer of those CD purchases are of the real thing.
BMG and <A HREF="http://www.sunncomm.com">SunnComm</A> Technologies revealed last week that they have entered into a "strategic worldwide" licensing agreement and revenue deal to add restriction technology to CDs in an effort to reduce piracy and the unauthorized duplication of music. The companies report that the agreement will enable the use of SunnComm's newest proprietary CD restriction system, known as MediaMax CD-3 Technology, on BMG discs.
Harman International announced July 1 that it will close its Madrigal facility in Middletown, CT on August 30 as it continues to consolidate and reorganize its high-end brands under the <A HREF="http://www.harmanspecialtygroup.com/">Harman Specialty Group</A> banner. Although the name Madrigal was itself not used as a brand on audio products, it had been the umbrella under which Harman had produced and distributed its Mark Levinson, Revel, Audio Access, and (<A HREF="http://www.stereophile.com/news/11612/">recently discontinued</A>) Proceed brands.
Apple announced last week that music fans have downloaded over five million songs from its iTunes Music Store since its launch two months ago. In addition, the company reports that over 46% of the songs have been purchased as albums, and over 80% of the over 200,000 songs available on the online store have been purchased at least once.
There may be a digital network in your audio future. To help you run it, 17 consumer electronics and computer companies, including Fujitsu, Gateway, HP, Intel, IBM, Kenwood, Panasonic, Microsoft, NEC, Nokia, Philips, Samsung, Sharp, Sony, and Thomson recently announced the formation of the <A HREF="http://www.DHWG.org">Digital Home Working Group</A> (DHWG).
The record biz is in a world of hurt and doesn't mind broadcasting the news far and wide. But while the source of its woes will be debated in business schools for years to come, studies are starting to emerge that document the demographics of music buyers and their changing behaviors.
DVD-Audio has been struggling to find its footing for three years now; the average consumer on the street has very likely never even heard of it. Watermarked discs, confusing playback menus, competition from SACD, and a dearth of titles haven't helped, but perhaps the biggest problem DVD-A faces is simply getting the word out.
Sony announced last week that it has created a new brand product line intended to identify its highest end products: <A HREF="http://www.sony.net/SonyInfo/QUALIA/">Qualia</A>. Initially, the new line will launch only in Japan, and will include both audio and video products in addition to a small pocket camera. Sony President Kunitake Ando had previously suggested the line would launch by March 2003.
Audiophiles will get a rare opportunity to discover the similarities and differences between SACD reproduction and the real thing at this year's <A HREF="http://www.homeentertainment-expo.com">Home Entertainment 2003</A> show in San Francisco. <A HREF="http://www.diversityrecords.net">Diversity Records, Ltd.</A> has announced it will record two performances by its artists at HE2003 on June 7 (1–4:30pm).