BMG Testing CD 'Cloaking' Technology From SunnComm
BMG Entertainment has agreed to test digital "cloaking" technology from SunnComm Inc. for possible use on its CDs. The proprietary MediaCloQ technology from Phoenix-based SunnComm is designed to prevent discs from being duplicated with a CD burner or "ripped" and converted to the MP3 format.
Nashville-based Music City Records has released two albums that feature MediaCloQ, including Charley Pride's "A Tribute to Jim Reeves" (Bulletin, March 28). SunnComm executive VP William Whitmore says the company is in "serious" talks with about 25 other labels.
Sami Valkonen, senior VP of new media and business development for BMG Distribution, says his company plans to test CDs that combine its in-house developed "Digital Access" application with MediaCloQ. With the BMG application, CDs that are placed in a computer can be ripped and dropped onto the hard drive for transfer to portable players, but the music files contain digital rights management technology that prevents them from being e-mailed or placed on a file-swapping network. "Ultimately, the way to combat piracy is for us as music companies to put additional benefits to the legitimate CDs, so there's a differentiation between the CD you purchase in the store and the one your friend makes for you," says Valkonen.
Valkonen would not discuss the cost of adding MediaCloQ to BMG discs but says, "We are absolutely committed that whatever we do in this field will not impact our prices to retailers." In March, Music City Records told Bulletin that MediaCloQ adds 12-15 cents to the cost of pressing a CD. SunnComm's Whitmore says pricing "will be handled on an individual basis, based on volume and commitment."
BMG's next testing phase will incorporate placing the technology on promotional CDs, likely in four to six weeks.
Sami Valkonen, senior VP of new media and business development for BMG Distribution, says his company plans to test CDs that combine its in-house developed "Digital Access" application with MediaCloQ. With the BMG application, CDs that are placed in a computer can be ripped and dropped onto the hard drive for transfer to portable players, but the music files contain digital rights management technology that prevents them from being e-mailed or placed on a file-swapping network. "Ultimately, the way to combat piracy is for us as music companies to put additional benefits to the legitimate CDs, so there's a differentiation between the CD you purchase in the store and the one your friend makes for you," says Valkonen.
Valkonen would not discuss the cost of adding MediaCloQ to BMG discs but says, "We are absolutely committed that whatever we do in this field will not impact our prices to retailers." In March, Music City Records told Bulletin that MediaCloQ adds 12-15 cents to the cost of pressing a CD. SunnComm's Whitmore says pricing "will be handled on an individual basis, based on volume and commitment."
BMG's next testing phase will incorporate placing the technology on promotional CDs, likely in four to six weeks.
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