MusicNet undergoes Windows Media conversion

By Matt Whipp

Posted on 12 Jun 2003 at 11:58

RealNetworks-backed MusicNet's catalogue is to be converted to Windows Media.

Currently offered through AOL's online service, the format change could well be the first fruit of AOL and Microsoft chumming up, dropping the former's antitrust suit, and agreeing a seven-year, royalty-free licence to use Microsoft's entire Windows Media 9 Series digital media platform.

Microsoft's cross-town rival RealNetworks is a majority shareholder and technology partner in MusicNet, which recently completed an additional round of funding from the company's original group of shareholders including RealNetworks, Bertelsmann, EMI and Warner Music Group. Quite how much funding was raised was not disclosed.

RealNetworks will continue to provide the technology to MusicNet - its Helix server is equally happy to serve Windows Media files and RealAudio, and preserves the DRM elements of the former. However, the company has recently turned its attention to RHAPSODY, a music service from Listen.com which it is in the process of acquiring.

A RealNetworks spokesperson said that beyond the benefits of RHAPSODY's distribution network already established, the service also avoids the gaze of the Competition Commission, which is keeping a close eye on the potential for those online music shops set up by the major labels to engage in uncomptetitive practices.

Roxio in turn has recently bought Pressplay, the music service set up by Sony and Universal, along with the assets of Napster, and it hopes to launch a legal music service under the Napster brand.