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BMG inks Web music pacts
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April 6, 2000: 7:21 p.m. ET
Entertainment giant sees summer launch of its downloading program
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NEW YORK (CNNfn) - BMG Entertainment, on Thursday announced two software deals that edged the giant media and entertainment company closer to selling over the Internet tunes from its massive catalog of popular artists. 
With online sales of recorded music expected to swell to $2.6 billion in 2003 from $327 million in 1999, according to Jupiter Communications Inc., BMG, and other leading music conglomerates, have been rapidly developing systems distribute their product over the Internet.
But efforts have been slowed by concerns about security, piracy and distribution methods.
Toward that end, BMG Entertainment, the $4.7 billion worldwide music and entertainment division of Germany's Bertelsmann AG, announced deals with software companies Microsoft Corp. and Liquid Audio Inc. (LQID: Research, Estimates) to facilitate the transfer of BMG music to consumers.
BMG said it has chosen Redmond, Wash.-based Microsoft's Windows Media technologies for sale of secure downloadable digital music, paving the way for broad commercial music distribution of current hits and catalog offering, starting this summer. 
BMG's roster boast songs from artists ranging from Elton John and Carlos Santana to Puff Daddy and Toni Braxton.
"By the winter holiday season, BMG plans to have a substantial amount of music available for sale electronically from its more than 200 record labels in 53 countries, including Arista Records, RCA Records and Ariola Music," BMG said.
However, the non-exclusive pact allows BMG to eventually seek similar pacts from other software makers, a company spokesman said. That leaves the door open to a potential future deal with Microsoft rival RealNetworks Inc. (RNWK: Research, Estimates).
BMG also announced an agreement with Redwood City, Calif.-based Liquid Audio Inc., that allows BMG to sell its music through online retailers using Liquid Audio software to integrate component technologies from several companies, including International Business Machines Corp. (IBM: Research, Estimates), InterTrust Technology Corp. (ITRU: Research, Estimates) and Microsoft.
"Using our Command and Control Applications, we plan to enable BMG to manage the flow of content from the point of creation to retail delivery," Liquid Audio said. 
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