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Alliance Entertainment buys Liquid Audio

13 June 2002 15:12 by Petteri "dRD" Pyyny | 3 comments

Alliance Entertainment, a privately held company which provides various online services in music sector, has agreed to buy one of the best-known old online music companies, Liquid Audio.

The financial terms of the contract were not disclosed, but the information came only week after Liquid Audio's shareholders called the company to put itself up for sale. Company made revenue of $135,000 in its first quarter and meanwhile lost a whopping $4.9M.

Liquid Audio has developed its secure music format and DRM system for years -- it was a pioneering company in this emerging area of business back in 1990s. Company provides secure tracks from major record labels to online retailers such as Amazon.com.

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Related articles:

  • Universal and Sony to offer cheap legal music downloads (13 June 2002)
  • Liquid Audio licenses BMG's music (11 March 2002)
  • Liquid Audio's investors call for sale (10 September 2001)
  • Liquid Audio cuts its workforce by 40% (2 May 2001)
  • Amazon launches free music downloads (28 February 2001)
  • EMI starts offering digital downloads (14 July 2000)
  • BMG announces relationship with Liquid Audio (6 April 2000)
  • Liquid Audio comes to your neighborhood store (29 February 2000)
  • Microsoft partners with Liquid Audio (23 January 2000)
  • Liquid Audio and WinAmp agreement (4 January 2000)
  • Is Liquid Audio in trouble? (26 November 1999)
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    Discuss this article! 
    A_Klingon (Moderator) 14 June 2002 5:06 Send private message to this user   
    Liquid Audio? Not surprising.

    Too little, too late. Heavy DRM. (Ughhh) I dabbled with it once just out of curiosity; and I wasn't particularly thrilled with it. Just one of another couple dozen audio formats whose time has come to be put out to pasture.

    RIP. Don't slam the door on your way out.

    -- K.A. --
    dRD (I hate titles) 14 June 2002 15:58 Send private message to this user   
    I've always wondered how you can actually spend $5M within three months when you have already seen that your revenue isn't going to be even 1/10th of the expenses for running the business.

    Some of these guys should definately go to the local library and pick up some "Business Basics" books and study those until they set up their next business. Chapter 1: Company's only and sole goal is to make profit. End of period.

    Petteri Pyyny
    Webmaster
    http://AfterDawn.com/

    This message has been edited since posting. Last time this message was edited on 14 June 2002 15:58

    A_Klingon (Moderator) 15 June 2002 1:12 Send private message to this user   
    Agreed.

    Maybe they were expecting something. Maybe somebody made them a promise which they wouldn't or couldn't keep. Maybe they were 'hanging on' pending the successful conclusion of some deal which didn't pan out. Maybe somebody broke a promise.

    Who knows? I don't think I ever actually *asked* for Liquid Audio -- that is -- I never consciously downloaded & installed it. It came packaged with something else, I forget what. (No, honest). Come to think of it, I *think* it was actually bundled with my Windows-98 disc, the one that came with my Packard-Bell computer. (The "system recovery disc") which I've had to use a couple of times. The damned thing (Liquid Audio) is in there I think, and I have to manually uninstall it.

    (Along with AOL, and a bunch of other unsolicited, useless stuff that M$ insisted on including).

    -- K.A. --
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