http://www.latimes.com/business/la-fi-cnet15nov15,1,2062635.story

MP3.com to Change Owner and Format CNet buys the online music service from Vivendi. It will focus on providing news and information about digital music next year.


CNET NETWORKS MP3 COM INC ACQUISITIONS

MP3 COM INC

ACQUISITIONS

CNET NETWORKS


By Jon Healey, Times Staff Writer


Once a rock star in the online music world, MP3.com is leaving the building.

The San Diego-based company helped launch the digital-music revolution five years ago by enabling independent artists to offer downloadable songs directly to the public.

But after two desultory years under the wing of global media conglomerate Vivendi Universal, MP3.com is about to change owners and stop the downloads.

A spokeswoman for CNet Networks Inc., an online media company , said Friday that it had purchased the MP3.com brand and Web address from Vivendi. Terms were not disclosed.

Rather than compete with downloadable music services such as Apple Computer Inc.'s iTunes Music Store, the site will focus on providing news and information about digital music when it launches next year, the spokeswoman, Martha Papalia, said. By contrast, the current version offers downloadable songs free and for pay, sells CDs with music in MP3 format and provides online music storage and custom radio stations.

Founded by entrepreneur Michael Robertson, MP3.com set out to overthrow the major record labels by letting artists reach fans through the Internet. But it never found a way to turn unknown acts into stars, or to turn the public's voracious appetite for music into profits.

Still, MP3.com has been a boon to independent musicians, said Larry Feldman, owner of online music distributor DMusic.com.

"It's about musicians having access to worldwide distribution" without the major labels, Feldman said. "That's the revolution."

Jeff Simpson, guitarist for San Diego alternative rock band Dr. Chunk, pointed out that several online outlets for musicians have sprung up since MP3.com started. "We all know now there are other opportunities out there."

Vivendi executives did not respond to requests for comment.

The main clue to CNet's plans came from a Web page for MP3.com artists, where CNet pledged, "We are working hard to build a service that will be best-in-class at hosting, promoting and showcasing your work."

MP3.com posted a note about the sale Thursday, alerting artists that it planned to destroy all of the music, images and other material soon after the current site shuts down Dec. 2. Musicians and former MP3.com executives said they saw the end coming long ago, after Vivendi put the venture on the block.

Things turned sour for MP3.com in 2000, when it launched an online music storage service that drew lawsuits from record labels, songwriters and music publishers. In May 2001, after paying more than $100 million in settlements and licensing fees, MP3.com sold its assets to Vivendi for $372 million.

Vivendi put MP3.com up for sale this year as part of its efforts to unload its entertainment ventures and pay down its debt.

CNet fell 48 cents to $7.36 on Nasdaq. Vivendi shares dropped 9 cents to $22.15 on the New York Stock Exchange.

Thanks to Jon Healy for sending me this.

good article..nice to see dmusic mentioned in it

yeah really good to see dmusic mentioned on it.

"Still, MP3.com has been a boon to independent musicians, said Larry Feldman, owner of online music distributor DMusic.com.

"It's about musicians having access to worldwide distribution" without the major labels, Feldman said. "That's the revolution."

DMusic...ROCKS!

Way to go Larry.. L.A. Times is one biggest papers in the U.S., its third i believe with 1.19 million. Wall Street Journal is first(1.85 million) and second USA Today(1.34 million)

"Vivendi executives did not respond to requests for comment. "
Sez it all don't it?

Larry sez it all in one sentence mind you. Hell I noticed that on the Tech TV report. Larry said more in 15 seconds than RIAA says in a lifetime.

The artical pretty much says it all.

Today's lesson, never deal with a corporate. They always f**k you over for profit.

Amen to that ronnie!

Not since the Great Leap Forward has there been such a destruction of the commons. Back then, for political reasons, millions of books were burned. Now, for very sensible commercial reasons that we must not question, millions of MP3s will be lost to the commons. You have precisely seventeen days to grab the good stuff (and, Steb Sly - we hope you have a backup)

Punters and musicians alike will have until December 2 to retrieve the goods. After that, the future isn't too difficult to predict.

CNET will follow Wal-Mart, Real Inc. and Apple Computer into the DRM business, infecting as many computers as they can with restrictive software controls that close what for a brief period has been an open computer platform. They all hope that this tentative business model, the terms of which are set by the entertainment "industry", will somehow turn them a profit. Or at least give the illusion of doing so, until a better idea comes along.

From http://www.theregister.co.uk/content/7/34009.html

"CNET will follow Wal-Mart, Real Inc. and Apple Computer into the DRM business, infecting as many computers as they can with restrictive software controls that close what for a brief period has been an open computer platform. "

"Infecting" is an excellent choice of words. Death to DRM!

This is GOOD NEWS !!!! With MP3.com going defunked where do you think all that traffic will GO!!!!!! Hopefully alot of it will come to DMUSIC!!! And you can't surf DMUSIC very long before you discover it's sister BOYCOTT RIAA!!! NOW more than ever music fans will learn the truth about the music Ind. and the Boycott will hopefully grow bigger than ever before now that music fans will learn that a major label KILLED the BIGGEST INDIE MUSIC web site on the net.Also alot of mp3.com's artists will also come to DMUSIC and they too will learn the truth!!! Fighting the GOOD Fight just got BETTER!!!!!!!!!!!!!!!!!

Dmusic is only going one way, and that is up, Larry Feldman u r da man.
hang on i need an icon....

yo wrong one dude !!!
should have been long live Dmusic.

So who's going to invite all those displaced indies to DMusic?

So who's going to invite all those displaced indies to DMusic?
~zippy.

Ooops.

Ooops.

Stupid question... but.. whats DRM?

Digital Rights Management - or, generically, "copy protection." DRM is the main tool of the enemy of music freedom. IF the major media companies make DRM too wide-spread and accepted by the public, the independent content creators are doomed to fight for sales on an un-level playing field. Boycott-Riaa should perhaps rename itself "Boycott-DRM" in my oppinion.
DRM is the tool of the RIAA minded devils of the content industry. Fortunately, it is flawed in that it don't work well and can always be broken. The bad thing is that if the public becomes too used to it, we can't compete on a level playing field.
Fight against the enemy of fair use!
Copyright was intended to be fair, NOT to lock away content. Content exists for the PURPOSE of being SHARED...
The Enemy wants only THEIR content to have a chance.

Shmoo, of Electric Gypsy
Support Local and Independent Music!

Vivendi put MP3.com up for sale this year as part of its efforts to unload its entertainment ventures and pay down its debt.

LOL looks like someone's winning this battle!

Zippy their are many post on sophie message board telling mp3.com artists to come on over to DMUSIC!!!!!!!!