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DRM Watch : DRM Technologies: Media Rights Technologies Launches, Powers Streaming Music Service

Media Rights Technologies Launches, Powers Streaming Music Service
July 14, 2004
By Bill Rosenblatt

The DRM and music distribution vendor Music Public Broadcasting relaunched itself as Media Rights Technologies (MRT) today.  The company offers some proprietary DRM technologies, including one for audio called X1 Recording Control, which it claims works with any file format and playback technology, protects against several different forms of transcoding and stream capture, and supports Superdistribution, thereby allowing files to be shared on a P2P network with compensation to rights holders at each step. 

X1 Recording Control is used in the company's BlueBeat music service, which was also relaunched.  BlueBeat is a paid subscription streaming radio service that offers over 300 different channels and very high sampling rates of 160 or 320 kbps, which approach CD quality sound.  BlueBeat compensates for unreliable broadband internet connections by caching large amounts of content on users' hard drives, thereby requiring as much as 4GB of disk space on users' PCs.  The service uses Microsoft Windows Media Player 9 for music playback, though it does not use Windows Media DRM and the files are actually encrypted MP3s.

BlueBeat is the brainchild of, and funded by, MRT CEO Hank Risan, who is (among other things) a mathematics prodigy, musician, and prodigious guitar collector.  It is an almost completely vertically integrated service: in addition to using its own DRM, the company does its own encoding from CDs, instead of obtaining files from Loudeye or some other service, and it uses its own hosting infrastructure. 

BlueBeat is actually one of the most refreshing online music services to come along in some time. It is designed to appeal to audiences that are both audiophiles and inveterate music explorers -- those who would be willing to pay the US $6 per month fee.  Its programming is widely diverse and intelligent, its sound quality outstanding (unlike all other streaming services, we have yet to experience rebuffering, even at 320kbps), and its look and feel is somewhat amateurish and iconoclastic, probably on purpose.  For now, it is not possible to download music or play it on demand, though the company expects to add such capabilities (plus others including controlled Superdistribution) in the future. 

The nearest existing analog to BlueBeat is Microsoft's MSN Radio Plus, which offers about 200 channels and high bit rates but not as much caching for $5 per month or $30 per year.  Of course, there are thousands of free streaming radio services, including AOL's Radio@Netscape (ad-supported) and Live365.com (huge variety but little quality control). 

Aside from BlueBeat, we remain skeptical about the appeal of Media Rights Technologies' X1 Recording Control DRM.  Several vendors in recent months, such as Digital Containers and File-Cash Networks, have been claiming to offer DRM technology that facilitates Superdistribution in order to bring a copyright respecting commerce element to file-sharing networks.  Others, such as Altnet and Weed, have been basing such capabilities on Windows Media DRM.  In addition, while stream capture is considered an increasingly significant source of piracy, we are also skeptical that X1 really does stop it as claimed. 

MRT has yet to obtain licenses from record companies (major or otherwise) beyond the standard RIAA/SoundExchange and compulsory ASCAP/BMI publishing licenses necessary for noninteractive streaming.  If the company succeeds in getting record company cooperation, it will be because it has convinced the majors that its technology really does represent a step beyond the DRM schemes from the likes of Microsoft, RealNetworks, Apple, and Sony.  As for BlueBeat itself, we like it a lot -- we're fans already.

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