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MP3.com Secures $45 Million Investment for Music Web Sites

Strategic Insights

— 1 min read

MP3.com, a leading online music file provider, has secured a $45 million investment from Cox Interactive Media, a subsidiary of Cox Enterprises Inc. The two companies will form a joint venture to create music Web sites, with both parties contributing equally financially to the new venture. The partnership aims to capitalize on the growing popularity of downloading music clips from the Internet, with Amazon.com and other major Web sites forging similar alliances. Despite concerns from the recording industry about music piracy, many artists are embracing the idea of making their music available online.

Key Takeaways:

  • MP3.com will receive a $45 million investment from Cox Interactive Media to form a joint venture for music Web sites.
  • The two companies will make approximately equal financial contributions to the new venture, which will include advertising and e-commerce revenue sharing.
  • David Easterly, president and chief operating officer of Cox Enterprises Inc., will join MP3.com's board of directors.
  • MP3.com has a catalog with more than 56,000 songs by 11,000 artists available for download.
  • The company uses MP3 technology to offer near-CD-quality sound and sells albums and compilation CDs to customers.
  • MP3.com's revenue primarily comes from advertising, with the company filing for an initial public offering in May.

Statistics:

  • $45 million: The amount of investment from Cox Interactive Media to MP3.com.
  • 56,000: The number of songs available for download on MP3.com.
  • 11,000: The number of artists with music available on MP3.com.
  • 30: The number of local Web sites across the country operated by CIM.
  • May: The month in which MP3.com filed for an initial public offering.

Sources:

  • "Cox Interactive Media Invests $45 Million in MP3.com". (No specific date attributed)
  • MP3.com (original source)
  • Cox Enterprises Inc. (original source)
  • Cox Interactive Media (original source)
  • Amazon.com (mentioned as a major Web site forging alliances to bring music downloads to customers)
  • Recording industry (mentioned as maintaining concerns about music piracy)

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