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Goodbye, Liquid Audio?

gosand writes "Yahoo is carrying the AP story that basically says that Liquid Audio's days are numbered. The board voted unanimously in favor of a $57 million stockholder cash payout. They would rather sell the company, but if there is no buyer then they would probably have to liquidate the company. Liquid Audio indeed. There have been other Slashdot stories on this topic, but this could be the last one."

21 of 153 comments (clear)

  1. Wow. That sucks. by Limburgher · · Score: 3, Funny

    But then, maybe AssetsandHardCurrencyAudio would have been a better name. Seriously, this is sort of sad.

    --

    You are not the customer.

  2. Serves 'em right by ruiner13 · · Score: 3, Interesting

    Maybe they should have embraced more platforms than just Windows. Every time there has been a story on /. about Liquid Audio, many people bitch about linux or mac support. They should have listened, then they'd (theoretically) have a few more customers. Frankly, IMHO, if you are going to be an internet/internet based service company, you'd better support all internet platforms or you're just bound to fail (unless you are M$).

    --

    today is spelling optional day.

    1. Re:Serves 'em right by Dark+Paladin · · Score: 3, Insightful

      While I think you're being a little harsh, I have agree with you on another level.

      It seems to me that a lot of the new "Internet audio" companies that are endorsed by the major music industries have been overgoing a very slow and very painful evolution.

      Phase 1: We've got music - but you can only listen via Windows and Internet Explorer, and you must be connected to the Internet for it to work.

      Me: Fuck that - I'm an OS X geek.

      Phase 2: All right, now we've got music you can download - but it only works on the original machine you bought it at, and you have to be connected to the Internet to make it work - and you have to be using Windows and Internet Explorer.

      Me: Fuck that - have a Powerbook I like to put my music on, and I'm not always connected to the Internet.

      Phase 3: How about this - you still need Windows and Internet Explorer, but we'll let you burn CD's - but you can't rip them to MP3.

      Me: Fuck that - I've got an iPod, and I want to carry my music with me.

      Next phase will probably be: All right, you can have portable music but only if you use a WMA file for it. And you have to pay a monthly subscription.

      Me: Look, how about you offer each song I want for $1 to $2 each (depending on newness of the song, length, etc) at 64-320 bits MP3 encryption, and keep a record of what I've bought so I can downoad it whenever I want.

      Them: But...you might let others listen to it! Oh, well, - I guess that online music sales don't work. We tried.

      Me: Arrrrgggghhhh!

    2. Re:Serves 'em right by sql*kitten · · Score: 5, Insightful

      Maybe they should have embraced more platforms than just Windows. Every time there has been a story on /. about Liquid Audio, many people bitch about linux or mac support. They should have listened, then they'd (theoretically) have a few more customers.

      Like Loki, the games company, you mean? The unpleasant fact is that Slashbots make a lot of noise about free-as-in-speech but their behavior indicates that free-as-in-beer is all they really care about. If it cost more to port to Linux than can be made by paying customers, then it would only accelerate a company's demise.

      Ah, you say, but if it was Open Source, it would outlive the company! Sure it would, but what kind of a business model is it when you actively encourage your users to withhold their support and circle like vultures waiting to devour the products you've invested your time and money in?

    3. Re:Serves 'em right by Xzzy · · Score: 5, Insightful

      > Maybe they should have embraced more platforms
      > than just Windows. Every time there has been a
      > story on /. about Liquid Audio, many people bitch
      > about linux or mac support.

      not to derail your totally valid and warranted rant here (supporting all platforms really shouldn't be as difficult as most companies make it sound), but you can HARDLY attribute the failure of a company to what platforms it supports.

      No matter what you would like to SEE happen, windows is by far the most used platform in the world. Remember the old saying, 'you can never lose by buying blue'? The same holds, for the most part, with windows. You can never go wrong by picking windows.

      If a company does fail, it's going to be due to a flawed business model, a poor product, whatever.

      But at this point in time, failing to support mac or linux is not going to be a driving point in a company failing.

    4. Re:Serves 'em right by Dark+Paladin · · Score: 3, Insightful

      My only argument against that is the same one for Mac games: time.

      I honestly believe that Loki fell, not because Linux geeks "don't want to buy software", but "don't want to buy 6-12 month old games". There's a huge difference. I have both a Win98 PC, a PowerMac, a PowerBook, and all 4 consoles (GC, Xbox, PS2, GBA).

      Now, if I already have Max Payne for the PC, what's going to make me want to buy Max Payne for the Xbox - 6 months later? Or the Mac version - another 6 months after that?

      Games are more of a "gimme now" effect - usually the first version of a game released for any console does the best. (Odds are, I'm willing to bet that the Xbox version of Dead to Rights will sell better than the PS2/GC versions, only because it preceeded the other two by 6 months or so).

      So I'm afraid I can't accept your argument that Loki fell because "Slashdotters don't want to pay" - I've noticed that most Linux folks don't mind paying for things if they need to. So $50 for a game now, or $50 a year later for the same game that might or might not run on your favorite flavor of Linux (if you get it running at all - that was my biggest problem with Loki games - I could never get the Linux versions to run anyway because I'm not "elite" enough.

      But that's just my opinion - there's a kernel of truth to your comment, but I think there are more factors than you were willing to look at.

    5. Re:Serves 'em right by Dave_bsr · · Score: 3, Informative

      This guy knows it. I don't buy games just because I can play them on Linux. I buy games because I want them, and being able to play them on Linux is really nice, cuz I won't have to boot into that other operating system I keep around for gaming. But- I'm not gonna pay more money for a later game just so i can play it on Linux / Xbox / other system.

      Go Blizzard's way with mac's: release a hybrid version and people just might pick it up.

      Note: UK2K3 is one such game, I hear...which absolutely rocks. Go buy it.

      --


      Who is this Anonymous Coward character, how does he post so much, and why is he always such a whore?
  3. What about the users? by base3 · · Score: 5, Insightful
    What happens to the people who were foolish enough to actually pay money for music in this locked down, DRM-encumbered format?

    Since the company will be dissolved, this precludes anyone stepping up to ensure that this music will be playable on future operating systems, such as the upcoming Microsoft Windows Goatsex Rights Management Edition.

    The likelihood that these users will be left out in the cold without being able to use what they bought^W licensed in perpetuity is the kind of argument against DRM/Palladium/TCPA we should be pushing.

    --
    One CPU cycle wasted on digital restrictions management is ONE TOO MANY.
    1. Re:What about the users? by scalveg · · Score: 3, Informative

      Liquid's strategy from the beginning was to enable customers to burn their own (standard, redbook audio) CDs of purchased music.

      If you have any Liquid tracks you have not yet burned to CD, now would be a good time.

      There have been issues with the service not working with all CDR drives. For those customers limited to on-system playback, the Liquid Player should be able to continue playing your (paid, non-expiring) content until some day in the future when OS incompatibilities prevent it from running.

      If you substantially change your system, make sure to retain the passport.lqp file. This will NOT allow you to move CDR burn permissions to your new system, but should allow playback.

      Chris Owens
      San Carlos, CA

  4. Cooincidently by szyzyg · · Score: 3, Funny

    These guys Offices were right across the road from Napster's offices..... there's something very hostile about the internet music business.

  5. Unethical Stuff by DaytonCIM · · Score: 5, Insightful

    Liquid Audio sued two dissident shareholders, including MM Companies Inc., for allegedly violating federal securities laws in their efforts to block the online music company's planned merger with media distributor Alliance Entertainment Corp.

    The merger died last month and two MM Companies executives now sit on Liquid Audio's board of directors.

    Liquid Audio's suit against MM Companies has been dropped, Doig said.


    Does that seem a little unethical to anyone else? Maybe what is killing Liquid Audio is poor management and outside investor influence.

  6. FMJ by All+Names+Have+Been · · Score: 5, Funny

    There have been other Slashdot stories on this topic...

    ... there are many like it, but this one is mine.

    With apologies to Stanley Kubrick.

  7. Well no wonder by Anonymous Coward · · Score: 5, Informative

    From their web page:

    "OUR SITE IS OPTIMIZED FOR INTERNET EXPLORE (sic) 4.X OR BETTER AND NETSCAPE 4.X OR BETTER"

    Ignoring the AOL-ish use of capitalization and the misuse of the word 'optimized', I'm using Galeon 1.2.6, which I think is better than either one of those, but I still can't get into the site.

    I guess their non-sighted customers aren't important either, since the above notice is provided as a gif.

  8. Liquid Audio Sold its Intellectual Property to MS by Anonymous Coward · · Score: 4, Informative

    Liquid Audio sold its intellectual property to Microsoft in September. If the company goes under, you'll see support for their format in a Windows Media Player Update or Plugin.

    http://www.pcworld.com/news/article/0,aid,105501 ,0 0.asp

  9. Curious by Snork+Asaurus · · Score: 4, Interesting

    This seems curious, given that Microsoft just bought 20 or so of Liquid's patents for "digital watermarking, content distribution, audio encoding, loss-less compression and transferring audio to digital playback devices". Maybe Liquid was just trying to raise cash, but where MS is involved one has to wonder if there's something else afoot. Maybe they told Liquid to sell or they'd stomp them. Maybe Liquid knows that their days are numbered once the beast gets into the business. Maybe Liquid feels that DRM is a lost cause and is getiin' while the getin's good. I've got a headache, so someone else can do the math, but this has to be more than a coincidence.

    --
    Sigs are bad for your health.
  10. MS cuts a piece of everyone's pie. by TPS+Report · · Score: 5, Insightful
    Liquid Audio's days are numbered [...] The board voted unanimously in favor of a $57 million stockholder cash payout. They would rather sell the company, but if there is no buyer then they would probably have to liquidate the company.
    Interestingly enough, I was reading this month's issue of CPUmag , and they said Liquid Audio had already sold the majority of the patents they hold - to Microsoft. MS is letting them (indefinately?) use the technologies and patents Liquid Audio came up with, but Microsoft owns the patents now. Yes, really. Now that I see today's story, I wonder what company they had in mind to "make a $57 million stockholder payout".. :) I'm sure there's at least a few patents MS will find useful enough to include in Windows Media Player 9.x. Did anyone else notice that Windows Media Player 9 is not uninstallable? Welcome to step one of forced Digital Rights Management. Step two, coming soon: The "do not enable DRM" checkbox in WMP will accidentally disappear in future versions. Step three: Welcome to Palladium. Fun times. :)
    --
    I was told that I could listen to the radio at a reasonable volume from nine to eleven...
  11. My answer to what the record companies should do by BigJimSlade · · Score: 5, Interesting

    Dear Recording Industry: feel free to implement this at anytime...

    A music professor of mine said that he thought the music industry would improve if it went back to a "singles" market (ie: Don't put out a whole album of crap if you've only got one or two good songs). This is the way it was in the 1950s and 1960s. This makes perfect sense for downloadable music. I see two real problems with these a la carte tracks right now.

    Number One: There is not an easy way to pay for something online that costs so little

    Number Two: Traditionally, you have paid for a tangible product that you hold in your hands... a work of art, if you will.

    I suggest the following to counteract this:

    If the music industry truly want's to treat online music as a service, how about $0.10 - $0.50 a track. You don't get unlimited downloads (except maybe a way to resume a download that did not complete or something) At this price, who cares if you lose it? You can just download it again really cheap. It's probably not even worth most people's time to back it up to a CD, but it's certainly something they can do.

    Now what about the micro-payment problem? It's simple: pre-paid music cards. They work for telephone service quite successfully in the US and for cell phones overseas. Why not sell a $10 card at the local convenience store (or even at something like Tower Records to start with) that works like a phone card and allows you to download whatever music you want! Maybe you get even more "download credits" for buying more at one time (a la Dave & Busters game cards... the more money you put on at one time, the more credits you recieve) Special incentives can be offered to frequent downloaders, etc.

  12. Re:Sad, inevitable, but if people would act... by BigJimSlade · · Score: 4, Interesting

    Liquid Audio was used by certain major label acts (Creed comes to mind) to release "unreleased" tracks on their web site.

    I don't know why people are up-in-arms about the company's demise in the slightest. They had plenty of patents on digital watermarking technologies and the content was very restrictive, besides being available only on one platform (Windows). Bye bye, Liquid Audio. I'll hardly miss ya.

  13. Re:My answer to what the record companies should d by Robin+Hood · · Score: 3, Interesting

    You don't get unlimited downloads (except maybe a way to resume a download that did not complete or something)


    Simple, easy-to-implement solution: your money buys you a certain amount of time (six hours? 24 hours?) in which that file is available for you to download. A click-through legalese document says that you assume the risk of making sure your download worked, and backing up the file after it's been downloaded.


    They give you six hours (or whatever) so even a modem user can retry once or twice if he's having temporary problems downloading (lousy connection, computer crashed part-way through, etc.). And they implement the permissions by storing a cookie on your computer with a session ID; the *server* stores the "time left in download window" information so that hacking the cookie won't do you any good. This also defeats people E-mailing the d/l link to their buddies or putting it up on a Web site (a really savvy person could E-mail the cookie along with the link URL, but this will stop 99.8% of the kiddiez who might try this).


    I've seen a system like this work for delivering software across the 'Net: you pay and you get a temporary download link. Seems like it should work just fine for music as well.

    --
    The real meaning of the GNU GPL:
    "The Source will be with you... Always."
  14. Very fucking simple, people. by NineNine · · Score: 3, Insightful

    Broadband. You can't listen to shit with 56K analog, and the vast majority of all Net users don't have anything coming even close to an uncapped, unlimited high speed pipe. I would have gladly paid for it when I had a job that had broadband. Hell, I used quite a bit of streaming audio when I worked (mainly launch.com), but as soon as I got home, fuck it. They were waaay too early. Something like this will fly in about 10 years when broadband is more ubiquitous then it is now.

  15. But you didn't address the suggestion. . . by kfg · · Score: 3, Insightful

    as given. The suggestion was that instead of embracing *only* the majority market they could have *widened* their appeal by embracing the niche markets as well, thus giving them more customers.

    You responded with the commercial failure of a company ( which, by the way, only sold physical media, not net media) that catered *ONLY* to *one* of the niche markets, thus having the *narrowist* customer range possible.

    Not the same thing at all.

    Let me ask you this, have fewer people adopted the use of Shockwave or RealPlayer since they have been made available for Linux, or, perhaps, *more*?

    Which is still alive, Real, or Liquid?

    KFG