RealNetworks Inc is to develop software in compliance with IBM Corp Electronic Music Management System (EMMS) – a music download format that is being tested by most of the major record companies in the US. The companies see it as a possible answer to MP3; the download format that the recording industry believes could severely damage its profit margins if left unchallenged.
RealNetworks is the first streaming media company to go with IBM’s format, which is being tested by the likes of BMG Entertainment, Universal Music, Warner Music and Sony Music in trials that will eventually lead to users being able to download full-length DC-quality albums to their computers. Microsoft Corp is expected to announce version 4.0 of its MS Audio rival format this week. IBM’s technology is part of the wider Secure Digital Music Initiative (SDMI) that is the industry’s attempt to develop – and agree upon – a secure way of delivering downloadable music for which they can charge users.