Liquid Audio Expands and Releases Third Quarter Results
Liquid Audio announced that 1,000 music sites, including 22 major
retailers, are now a part of its distribution network and are using its
software and services to integrate digital music into their stores. Since
the beginning of July, Liquid Audio has doubled the number of name-brand
retailers around the world using its Retail Integration and Fulfillment
System (RIFFS) to sell the Liquid Catalogue of downloads in their online
stores. BestBuy.com is the newest company to announce the usage of Liquid
Audio as its digital service provider. Six other retailers, including Tower
Records in the US and HMV in the UK are using the Liquid Kiosk Network
software to sell music downloads in selected retail stores.
The majority, 30 out of 39, of the authorized retailers in the EMI
Recorded Music digital download program have chosen Liquid Audio as their
digital service provider. Liquid Audio has also expanded their services in
other directions. Warner Music Group is using Liquid Audio's digital music
delivery system to sell digital downloads through retailers. The retailers
include BestBuy.com, CDNOW, CDPlus.com, Chapters.ca, HMV, Musicland's
Destination Web sites: MediaPlay.com, OnCue.com, SamGoody.com, and
Suncoast.com. Also included is TowerRecords.com.
Using Liquid Audio's multi-format music delivery software and
distribution services, the Warner Music Group downloads will incorporate
leading digital rights management solutions and compression technologies.
Consumers will have a choice of downloading music using either Liquid Audio's
digital rights management technology in the AAC format or Microsoft's Windows
Media Digital Rights Management in the Windows Media Format. The use of
these technologies will ensure that the downloads are available to the vast
majority of computer users and portable device owners. The digital media
players and jukeboxes supported are: Liquid (TM) Player for the Mac and PC,
MusicMatch Jukebox, RealJukebox, Sonique, Winamp, Windows Media Player 7 and
Windows Media Player 7 for the Mac, and Yahoo! Player. Liquid Audio users
are able to export music to portable music devices, including models from
Toshiba and Sanyo! .
"Liquid Audio has established a commanding market lead at retail with a
large number of major retailers selecting our digital distribution
infrastructure to provide major label and indie content to their customers,"
stated Gerry Kearby, CEO and co-founder of Liquid Audio, INC. "As a pioneer
in digital music, Liquid Audio understands how important it is for retailers
to provide consumers with a secure, user friendly digital download
experience- both online and offline."
Scott Young, vice president and general manager, Entertainment at
BestBuy.com, said, "Liquid Audio is a leading service provider of secure
digital downloads of both independent and major label content. BestBuy.com
chose Liquid Audio as a digital service provider because of a shared
commitment to ensure a high-quality customer experience for the digital
delivery of music."
"With Liquid Audio's Retail Integration Fulfillment System (RIFFS) we
have added a virtual warehouse of tens of thousands of downloadable Liquid
Tracks to CDNOW," stated Tracie Reed, vice president of Merchandising at
CDNOW. "It is important to us that we deliver a variety of products and a
superior customer service experience. Liquid Audio software and services
help us do that."
"The Liquid Kiosk Network enables customers to create their own music
compilations or complete albums right in the store," said Mike Farrace,
senior vice president, Digital at Tower Records. "Having the kiosk in our
Hollywood and Berkeley stores helps us create an interactive shopping
experience for our customers as well as add more than 80,000 songs to our
The RIFFS provides the application software that merchants use for
distribution, tracking and commerce integration of digital music. RIFFS also
provides the content, security, digital rights management and CD-quality
sound that fuels music downloads. The Liquid Kiosk Network extends Liquid
Audio's music distribution system beyond the Internet and into the retail
store, allows music fans to browse virtual music inventory, listen to
previews and make music selections.
Liquid Audio has also joined with Microsoft Works Windows Media software
by successfully encoding 50,000 tracks of music covering all genres for
delivery through the Liquid Audio distribution network. Liquid Audio also
plans to deliver support for Windows Media Audio and Windows Media DRM
support in the next major upgrade of Liquid (TM) Player software.
"This Liquid Audio milestone underscores the popularity of content in
Windows Media Format among music fans and the industry," said Dave Fester,
general manager, Windows Digital Media Division, Microsoft Corp. "Liquid
Audio is fast becoming the key distribution channel for Windows Media digital
music on the Internet."
Mr. Kearby stated
"Liquid Audio makes it easier for consumers to access the music they want
over the Internet by offering the best formats combined with the best
security. By supporting leading formats such as Windows Media, we can
provide our retail partners with the best flexibility and selection for
digital music delivery."
The 2000 third quarter results for Liquid Audio show the potential
progress of the company, as it has expanded its global music distribution
network with the addition of the new content providers.
Total net revenues for the third quarter were $3.4 million, compared with
$3.5 million for the second quarter of 2000 and $1.8 million for the third
quarter of 1999. Net loss was $8.9 million, or $0.40 per share (basic and
diluted). Cash, cash equivalents, and short-term investments were $133.6
million at September 30, compared with $157.8 million at year end.
"We're encouraged by the recent activity of the majors, as well as a
steady stream independent labels, in releasing content via Liquid Audio's
expanding distribution network for their secure digital download programs.
These customers chose Liquid Audio because our software simplifies the user
experience for the distribution of content in multiple formats," stated Gerry
Kearb. "We're also
pleased with the continued increase in Liquid Kiosk Network installations in
retail stores throughout Europe and Asia, as well as the launch of the first
U.S. kiosk network at Tower Records stores. We continue to build the
infrastructure of a B2B e-commerce network for the global distribution of
music, with the roll-out of our fifth-generation product line, which includes
the first SDMI-compliant player available to OEMs. With this infrastructure
in place, we lo! ok forward to migrating our revenue stream toward recurring
download transaction revenues."
BestBuy.com - www.bestbuy.com
CDNOW - www.cdnow.com
CDPlus.com - www.cdplus.com
Chapters.ca - www.chapters.ca
EMI Recorded Music - www.emigroup.com
HMV - www.hmv.com
Liquid Audio - www.liquidaudio.com
MediaPlay.com - www.mediaplay.com
Microsoft - www.microsoft.com
Musicland - www.musicland.com
MusicMatch - www.musicmatch.com
OnCue.com - www.oncue.com
SamGoody.com - www.samgoody.com
Sanyo - www.sanyo.com
SDMI - www.sdmi.org
Suncoast.com - www.suncoast.com
Toshiba - www.toshiba.com
Tower Records - www.music.iz.com
Warner Music Group - www.warner.com/music/
Yahoo! - www.yahoo.com
Related MusicDish e-Journal Articles:
» Liquid Audio Goes To Europe
» Liquid Audio Expands its Role in the Music Industry by Providing Services to Numerous Companies (2000-01-18)
» Liquid Audio: The Next MP3? (1999-11-04)
Related News from Mi2N:
» Zomba Records Group Selects Liquid Audio For Digital Distribution Services
» Liquid Audio Selected By 22 Major Retailers Worldwide For Digital Distribution; BestBuy.com Latest To Announce Integration Of Liquid Audio As Digital Service Provider
» Liquid Audio Announces Third-Quarter 2000 Results
» Leading Online Retailers 'Go Live' With Warner Music Group Downloads Using Liquid Audio's Digital Delivery System
» Liquid Audio Successfully Encodes 50,000 Tracks In Windows Media Format