February 21, 2001  
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From the New York Times: "Outlining plans to transform itself into a fee-based service, Napster said today that it intends to start charging users this summer to exchange music files online. And the company said it has proposed giving $1 billion over five years to record companies, including the major record labels that sued Napster after accusing it of abetting copyright infringement.

"Napster said it is contemplating charging users a fee between $5.95 and $9.95 to download an unlimited number of music files, and may charge an additional fee for users who want to transfer the files to their own compact disks.

"But the business model depends on several factors, including whether Napster users will be willing to pay, whether the company will be able to build the technology to securely transfer files, and whether the record companies will go along...

"Under the proposal, the five major companies would split $150 million annually, with the portion to each company determined by what percentage of their works are exchanged by Napster users. An additional $50 million a year would be split among independent music companies and artists."

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BY PAUL MALONEY
Internet radio -- at
the touch of a button -- thousands of options -- on any stereo in your house. Heard it before, right? IM Networks' iM Tuner (Sonicbox), Akoo's Kima, and other interesting appliances (see RAIN report on other Internet radio appliances here) are products that promise to allow you to enjoy the diversity and excitement of audio on the Internet without tying you to your computer, and maybe even simplifying the process.

Recently here at
the RAIN test labs, we were able to check out a prototype of a new appliance that promises to do all of that, but has some important subtle differences.

As one might
expect, the ZeeSounds "ZeePad" has quite a bit in common with the other products we've seen. It's a small, attractive little box that connects to your computer's USB port (which is also where it gets its power -- no AC adapter or batteries necessary!). The output of your computer's soundcard is then "broadcast" by the unit throughout your home, where it can be enjoyed in a setting more comfortable and appropriate for listening.

But here's the first,
and most important difference. While the iM Tuner and Kima work with a 900 MHz signal (the frequency area your cordless phone probably uses), the ZeePad actually emits a low power FM signal somewhere around 88 on your FM receiver. Now this is an important distinction for a couple of reasons:

(1)
You don't need a second "translator" unit near your stereo. Your receiver can't pick up a 900 MHz signal, so for the Kima and IM Tuner, a second piece is necessary. (Interestingly enough, this can be seen as a disadvantage of the ZeePad -- if your home stereo doesn't actually have a tuner, such as the one owned by the author of this article -- you can't use the ZeePad).

(2) The signal isn't limited to one receiver. The fact that the signal from the ZeePad connected to your computer is FM means that any FM receiver in the house can pick it up. You could be in the backyard listening on a transistor, your spouse could be in the living room listening to the hi-fi, and the kids could be listening upstairs. As for your entire family agreeing to listen to the same thing, at least it's technically feasible.

(3) The radio with which you choose to listen doesn't need "RCA" inputs (the jacks into which you plug the CD player, etc.). Just dial up the appropriate frequency and go.

Now it's true that the ZeePad doesn't trump both the Kima and IM Tuner on every one of these counts. For instance, the Kima can be used without a tuner, and without RCA inputs. The Sonicbox can be used as a "Walkman"-type receiver without another radio at all. (And one other "nitpicky" point: Yes, the Kima also uses a very low power FM signal, but only to send from the second, or receiving unit, to the stereo -- we're talking maybe a couple feet.) But it's the combination of these advantages that makes the ZeePad cool.

Another advantage, and probably a huge one, will be price. When the product hits the market, look for it to retail between $60 and $80. And ZeeSounds partner and consultant Floyd Gelini tells RAIN that if the company can secure the necessary investment to fund additional R&D, that price may drop significantly. It stands to reason that consumers would be more likely to take a chance on a product in the "stocking stuffer" price range, rather than on a $100-$200 appliance.

ZeeSounds also intends to make the product smaller. The unit, while not large now, takes up some desk space. But the company plans to shrink it down, maybe even down to the size of a mouse. Or better yet, the company is negotiating deals with OEM's ("Original Equipment Manufacturers," which aren't actually manufacturers at all, but the companies that assemble computer units) to have the unit come installed inside PCs as standard equipment, like a CD ROM drive.

The biggest question in our mind is how this product will be approved by the FCC. The very fact that it broadcasts an FM signal which could potentially interfere with your neighbors' broadcast reception could prove fatal in the approval process. Gelini, however, stressed that he and the company are confident that government approval of the product won't be a problem. The unit's limited range, and the fact that the signal is carried on less commonly used frequencies, should address most interference concerns. But with a reported range of up to 50 meters, we still think there's a possibility of a problem (the RAIN offices are in Chicago, where there are a lot of apartment/condo dwellers, and a lot of noncommercial radio stations down at that end of the dial).

By the way -- we did actually listen! The product seemed to work really well, and sounded fine. It'd certainly be interesting to be able to "bench" test and compare all the major appliances for frequency response, distortion, etc. (and someone will most likely do that soon). But it certainly works well enough to accomplish its purpose.

While Gelini stressed that there's ample opportunity for promotion, branding, a ZeeSounds Internet radio portal, and related wireless "spin off" products, he says the company right now wants to concentrate on the product. Check out what it might look like here, and watch for a launch soon.


Have an opinion on this article? Share it! Simply click the headline at left to bring up a convenient "Submit" form.



From the press release: "MeasureCast, Inc. announced today that 34 percent of Internet radio listening during the week of February 12 - 18 occurred midday -- between Noon EST (9 a.m. PST) and 4 p.m. EST (1 p.m. PST). The peak listening time was 3 p.m. EST (Noon PST), when nine percent of all listening occurred.

"Eighty-four percent of all listening for the week occurred between 8 a.m. EST (5 a.m. PST) and 8 p.m. EST (5 p.m. PST). As is the case almost every week, Thursday was the most popular day for Internet radio listening, capturing 19 percent of all listening for the week. And 11 stations on the MeasureCast Internet Radio Top 25 list recorded an increase in the total number of hours streamed compared to the previous week."

Read the press release here. As always, you can see the latest weekly and monthly MeasureCast Top 25 by clicking the links under "Metrics" on the left-hand menu of the RAIN page.



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February 21-25, 2001 The Gavin Seminar 2001, Miami, FL
February 26-28, 2001 Broadcasters Website Sales Conf. 2.0,
Tempe, AZ


xxx  

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