LOS ANGELES--Microsoft hosted a full-blown media production at the House of Blues Tuesday night, outlining its plans for delivering audio and video entertainment on the Web, and giving the audience a few surprises along the way.
As expected, Microsoft introduced its new audio compression standard, which creates files about half the size of MP3, as well as a system for artists to receive compensation as they send their digital assets into cyberspace.
Microsoft also debuted a new portable player device developed by Casio, which runs Windows CE and supports the full range of new audio and video technologies. Introducing the new Windows Media Technologies 4.0 platform was Jim Allchin, a senior vice president at Microsoft who said the company's media player has about 100 million users today.
Still in beta stage, the system includes a new compression format, code-named MS Audio 4.0, and an updated video compression system, which were demonstrated over both a modem and digital subscriber line (DSL) to impressive effect.
Allchin brought out Mick Fleetwood to judge several music files being streamed and downloaded at different rates and compression sizes. Each of the short music tracks was compared to the same ones encoded with Real Network's technology and MP3.
In what turned out to be a fairly awkward and staged testimonial, Fleetwood declared Microsoft's platform the victor in every case. "I don't even know why I'm up here really," he said after the fifth or sixth time he was cued for a response.
Other observers, however, weren't so decisive and said the overall sound still isn't much better than MP3, and only slightly better than Real Networks.
"While the presentation was expansive, it didn't hit a home run," said Charles Martin, a sales executive with Earthlink. "If Real [Networks] is a 5, I'll give this a 7. But I think Bill needs to go back to the audio lab."
Justin Frankel, the founder of Nullsoft and the widely popular Winamp online music player, said that the new format might have a slight edge on MP3 in creating files optimized for low speed playback. Songs in MS Audio format are compressed for 28 Kbps play, making them easy for modem users to stream and making them sound a little better than the others.
On the high end, though, Frankel thinks MP3 may still be better. "I'm able to get CD-quality with MP3, but not with this [MSAudio 4]," he explained, noting that Winamp is supporting all of the major online music formats.
Some of the content providers in the crowd said that the competition between formats is good for the consumer, offering more choices and driving innovation.
"I think it has an amazing quality and is definitely better than [Real Network's] G2, and we were one of the first sites to put up content with G2," said Ram Fish, CTO of the Global Music Network, which promotes a variety of artists' work online. "Now we will give people the choice."
But in a market that aims to create unprecedented, direct connections between artists and their fans, some observers questioned why content owners would want to use Microsoft as an intermediary. Others expressed similar skepticism about the digital rights management system, which requires users to contact a third party before they are able to open a media file. The feature is optional, however, at the discretion of the content owner.
Buffalo-based Reciprocal designed the system that lets content owners establish access rules that are enforced wherever that file travels. The file access rights include pricing and usage, and functions like sampling, printing, and copying.
Casio's new portable player for the Windows Media 4.0 platform, which looks similar to a Palm Pilot, will hold from one to four hours of media content, and will be available in May for about US$400 to $500, according to Phil Holden, group product manager for Windows CE at Microsoft.
In the end, of course, it won't be nifty portable devices and compression techniques that will get people to use any of these new online media technologies. After all, it's about the content. And Microsoft somewhat covered the bases there, announcing deals with more than 20 music sites and record labels, including Restless Records, Dream Works Records, musicmaker.com, Platinum Entertainment, and others.
Ian Rogers, the longtime Web master at record label Grand Royal, who this weekend signed on with Nullsoft and Winamp, said that consumers don't much care about the technology itself as what it will get them.
"I can tell you that on the Beastie Boys site, those kids would download anything if they knew it meant getting more Beastie tracks," Rogers said.
During the requisite schmooze hour after the presentation, prolific Chicago bluesman Buddy Guy, rattled the rafters with his guitar, giving everyone a reminder of what music is supposed to sound like.
But for all the glitz of Tuesday's event, Microsoft didn't get to monopolize the spotlight for audio this week. RealNetworks timed two big announcements on Monday and Tuesday -- the company will team with tech goliath IBM to produce a secure way to deliver online music. Real will provide its player as a plug in for IBM's technology, which will be tested with content from the five major record labels this June.
Real said on Tuesday it bought MP3 software developer Xing Technologies, and said it wants to get at the big market of MP3 users.
Tech companies across the board are pitching their technologies to the recording industry's Secure Digital Music Initiative, which is creating an open specification with added security for the digital delivery of music online by the end of the year.
