U.S. SECURITIES AND EXCHANGE COMMISSION

                           Washington, DC  20549


                                FORM 10-QSB



             X  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE


                      SECURITIES EXCHANGE ACT OF 1934


             For the quarterly period ended: December 31, 1999



                TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE


                               EXCHANGE ACT

                        Commission file No. 0-13167


                             TM CENTURY, INC.
        (Name of small business issuer as specified in its charter)


   Delaware                                                 73-1220394
   (State of incorporation)           (IRS Employer Identification  No.)


   2002 Academy, Dallas, Texas                                  75234
   (Address of principal executive offices)                   (Zip Code)

   Issuer's telephone number:                             (972) 406-6800


   Check whether the issuer (1) filed all reports required  to be filed
   by Section 13 or 15(d) of the Exchange Act during the  past 12 months
   (or for such shorter period that the registrant was required to file
   such reports), and (2) has been subject to such filing requirements
   for the past 90 days. Yes   X   No___

   The number  of issuer's  shares of  Common  Stock outstanding  as  of
   December 31, 1999 was 2,483,193.

   Transitional Small Business Disclosure Format (check one):Yes__ No  X
<PAGE>
<TABLE>
                                   TM Century, Inc.
                                    Balance Sheets
              As of December 31, 1999 (Unaudited) and September 30, 1999
<CAPTION>
                                        ASSETS

                                                                  December 31, 1999   September 30, 1999
                                                                  __________________  __________________
      <S>                                                              <C>                   <C>
   CURRENT ASSETS
     Cash                                                         $         463,596   $         354,332
     Accounts receivable less allowance for doubtful
      accounts of $103,693 and $100,000 respectively                        655,111             721,538
     Inventories, net of allowances for obsolescence of $258,545            449,521             446,279
     Prepaid expenses                                                        42,037              31,277
                                                                  __________________  __________________
           TOTAL CURRENT ASSETS                                           1,610,265           1,553,426

   PROPERTY AND EQUIPMENT                                                 2,612,374           2,563,220
     Less accumulated depreciation and amortization                      (2,163,851)         (2,116,116)
                                                                  __________________  __________________
           NET PROPERTY AND EQUIPMENT                                       448,523             447,104

   PRODUCT DEVELOPMENT COSTS, net of accumulated amortization
     of $1,668,974 and $1,630,071 respectively                              339,947             324,094
   COMEDY MATERIAL RIGHTS, net of accumulated amortization
     of $24,800 and $18,600 respectively                                     99,200             105,400
   OTHER ASSETS                                                              19,866              19,316
                                                                  __________________  __________________
     TOTAL ASSETS                                                 $       2,517,801   $       2,449,340
                                                                  ==================  ==================
<PAGE>

                         LIABILITIES AND STOCKHOLDERS' EQUITY

   CURRENT LIABILITIES
     Accounts payable                                             $          68,040   $          63,508
     Accrued expenses                                                       183,509             196,978
     Current portion of obligation under capital lease                            0               3,202
     Current portion of note payable                                         33,333              33,333
     Deferred revenue                                                       103,047             127,382
     Customer deposits                                                       32,919              37,623
                                                                  __________________  __________________
           TOTAL CURRENT LIABILITIES                                        420,848             462,026

   NOTE PAYABLE, less current portion                                        57,334              65,667
   CUSTOMER DEPOSITS - NONCURRENT                                           126,723              99,114
   ACCRUED SETTLEMENT FOR RIAA DISPUTE                                      405,100             405,100
                                                                  __________________  __________________
           TOTAL LIABILITIES                                              1,010,005           1,031,907

   STOCKHOLDERS' EQUITY
     Common stock, $.01 par value; authorized 7,500,000 shares;              29,705              29,705
     2,970,481 shares issued; and 2,483,193 shares outstanding
     Additional paid-in capital                                           2,275,272           2,275,272
     Treasury stock - at cost, 487,288 shares                            (1,291,227)         (1,291,227)
     Retained earnings                                                      494,046             403,683
                                                                  __________________  __________________
           TOTAL STOCKHOLDERS' EQUITY                                     1,507,796           1,417,433
                                                                  __________________  __________________
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                   $       2,517,801   $       2,449,340
                                                                  ==================  ==================

                      See notes to interim financial statements
</TABLE>
<PAGE>
<TABLE>

                                 TM Century, Inc.
              Statements of Operations and Retained Earnings (Unaudited)
                 For the Three Months Ended December 31, 1999 and 1998


                                                                      1999           1998
                                                                 ______________  ______________
      <S>                                                               <C>             <C>
   REVENUES                                                      $   1,601,890   $   1,489,768
     Less  Commissions                                                 284,483         287,021
                                                                 ______________  ______________
       NET REVENUES                                                  1,317,407       1,202,747

   COSTS AND EXPENSES
     Production, Programming, and Technical Costs                      482,322         518,261
     General and Administrative Costs                                  469,142         558,650
     Selling Costs                                                     226,411         173,217
     Depreciation and Amortization of Property and Equipment            47,735          81,000
     Reduction in Carrying Value of Inventories                              0           6,000
                                                                 ______________  ______________
       TOTAL                                                         1,225,610       1,337,128
                                                                 ______________  ______________
   OPERATING INCOME (LOSS)                                              91,797        (134,381)

   OTHER INCOME (EXPENSE)
     Other (Expense) Income, net                                        (1,388)          1,551
     Interest expense                                                      (46)         (2,051)
                                                                 ______________  ______________
       TOTAL                                                            (1,434)           (500)
                                                                 ______________  ______________
   NET INCOME (LOSS)                                                    90,363        (134,881)

   RETAINED EARNINGS, BEGINNING OF PERIOD                              403,683         416,153
                                                                 ______________  ______________
   RETAINED EARNINGS, END OF PERIOD                              $     494,046   $     281,272
                                                                 ==============  ==============
   BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE              $        0.04   $       (0.05)
                                                                 ==============  ==============
   WEIGHTED AVERAGE NUMBER OF BASIC AND
     DILUTED COMMON SHARES OUTSTANDING                               2,483,193       2,483,193
                                                                 ==============  ==============


         See notes to interim financial statements
</TABLE>
<PAGE>
<TABLE>

                                   TM Century, Inc.
                         Statements of Cash Flows (Unaudited)
                 For the Three Months Ended December 31, 1999 and 1998

                                                                              1999          1998
                                                                          ____________  ____________
     <S>                                                                       <C>           <C>
   OPERATING ACTIVITIES
        Net income (loss)                                                 $    90,363   $  (134,881)
        Adjustments to reconcile net income to
        net cash provided by operating activities
               Depreciation and amortization of property and equipment         47,735        81,000
               Amortization                                                    45,104        64,444
               Provision for doubtful accounts                                  3,693        (4,530)
               Reduction in carrying value of inventories                           0         6,000
   Increase (decrease) in cash from changes in operating assets
        and liabilities:
               Accounts receivable                                             62,734        97,088
               Inventories                                                     (3,242)       30,453
               Product development costs                                      (54,757)      (31,869)
               Prepaid expenses                                               (10,760)      (11,572)
               Other assets                                                      (550)            0
               Accounts payable and accrued expenses                           (8,937)      (92,636)
               Deferred revenue                                               (24,335)       29,415
               Customer deposits                                               22,905         2,760
                                                                          ____________  ____________
        NET CASH PROVIDED BY OPERATING ACTIVITIES                             169,953        35,672

   INVESTING ACTIVITIES
        Purchases of property and equipment                                   (49,154)      (51,765)
                                                                          ____________  ____________
        NET CASH USED BY INVESTING ACTIVITIES                                 (49,154)      (51,765)

   FINANCING ACTIVITIES
        Principal payments on note payable                                     (8,333)            0
        Principal payments on capital lease obligations                        (3,202)      (46,463)
                                                                          ____________  ____________
        NET CASH USED BY FINANCING ACTIVITIES                                 (11,535)      (46,463)
                                                                          ____________  ____________

   NET INCREASE (DECREASE) IN CASH                                            109,264       (62,556)

   CASH AT BEGINNING OF PERIOD                                                354,332       348,957
                                                                          ____________  ____________

   CASH AT END OF PERIOD                                                  $   463,596   $   286,401
                                                                          ============  ============


   Supplemental disclosures of cash flow information:

         Cash paid for interest                                           $        46   $     2,051
                                                                          ============  ============

              See notes to interim financial statements
</TABLE>
<PAGE>


                              TM CENTURY INC.

                   NOTES TO INTERIM FINANCIAL STATEMENTS

                        DECEMBER 31, 1999 AND 1998

   1.  BASIS OF PRESENTATION

   The interim financial statements of TM Century, Inc. (the  "Company")
   at December 31,  1999, and for  the three months  ended December  31,
   1999 and 1998, are unaudited, and include all adjustments (consisting
   only of  normal recurring  adjustments) which  the Company  considers
   necessary for a fair  presentation.  The  September 30, 1999  balance
   sheet was derived from  the balance sheet  included in the  Company's
   audited financial statements  as filed on  Form 10-KSB  for the  year
   ended September 30,  1999.   Certain amounts  previously reported  in
   prior interim financial statements have been reclassified to  conform
   to the 1999 presentation.

   The accompanying  unaudited  interim  financial  statements  are  for
   interim periods and do not include all disclosures normally  provided
   in annual financial  statements, and  should be  read in  conjunction
   with the Company's  audited financial statements.   The  accompanying
   unaudited interim  financial statements  for the  three months  ended
   December 31, 1999 are not necessarily indicative of the results which
   can be expected for the entire fiscal year.

   2.  INCOME TAXES

   Deferred income  taxes are  provided, when  applicable, on  temporary
   differences between the recognition of income and expense for tax and
   for financial  accounting purposes  in accordance  with Statement  of
   Financial Accounting  Standards  No.  109 ("SFAS  109").    Temporary
   differences  which  give  rise   to  deferred  taxes  include   basis
   differences of property and  equipment, accelerated tax  depreciation
   in excess of book depreciation, and valuation allowances provided  in
   excess of amounts deductible for tax purposes.  Under the  provisions
   of SFAS 109, recognition of deferred tax assets is permitted for such
   amounts which can be carried forward to future periods.

   As of  September  30,  1999,  the  Company  had  net  operating  loss
   carryforwards of approximately $1.3 million expiring in 2008  through
   2011 available to offset future taxable income.

   3.  LONG-TERM DEBT

   Effective January 2,  1999, the Company  purchased the remaining  50%
   interest of certain comedy material that was written and produced  by
   an individual for  broadcast by radio  stations and  marketed by  the
   Company, resulting in the Company owning 100% of such Comedy Service.
   For consideration of the comedy material  and the Company being  able
   to use the individual's name in connection with promoting the  Comedy
   Service the  Company agreed  to  pay to  the  individual a  total  of
   $124,000, payable over five years through December 2, 2003.
<PAGE>

   4.  EARNINGS PER SHARE

   Basic earnings  per  share are  calculated  on the  weighted  average
   number of common shares outstanding during each period.  There are no
   dilutive common stock equivalents for the three months ended December
   31, 1999 and 1998.

<TABLE>
   The following table provides a reconciliation between basic and diluted earnings per share:

                                                           Three Months Ended
                                                               December 31
                                                       __________________________
                                                             1999         1998
                                                            ______       ______
    <S>                                                      <C>          <C>
   Net Income (Loss)                                   $     90,363  $  (134,881)

   Weighted Average Number of Shares Outstanding
         Basic                                            2,483,193    2,483,193
         Dilutive effect of common stock equivalents              0            0
                                                       ____________  ____________
         Diluted                                          2,483,193    2,483,193

         Earnings Per Share:
         Basic and Diluted Net Loss                    $       0.04  $    ( 0.05)
                                                       ============  ============
</TABLE>
<PAGE>

   5.  LEGAL PROCEEDINGS

   On May 22,  1998, the Company  received a letter  from the  Recording
   Industry Association of  America, Inc. ("RIAA") alleging that it  was
   illegally duplicating sound recordings of the RIAA's member companies
   in its Mobile Beat  Series I and II  and Mobile Beat Holiday  Series.
   The RIAA alleged substantial damages in the amount of $76,000,000 and
   stated that it would consider a pre-complaint settlement.  Settlement
   discussions then ensued  and are continuing.   On June  30, 1998  the
   Company and its  counsel met with  RIAA  and  its counsel.   At  this
   meeting the RIAA made a demand for $3 million to settle the  dispute.
   In September,  1998  mediation  was  undertaken  with  no  settlement
   resulting.

   Thus far no discovery has been undertaken.  The Company believes that
   it has a meritorious defense to  many of the claims asserted, but  it
   is possible that  it will  not prevail if  the matter  is brought  to
   litigation.   Any  significant  cash amount  paid  in  settlement  or
   awarded in  judgment  would likely  have  an adverse  effect  on  the
   Company.

   The Company recorded a reserve for  possible loss of $385,000 on  the
   terms of  its latest  settlement offer  based on  annual payments  of
   $50,000 over a period of eleven years.  The recorded reserve reflects
   a discount of the  settlement offer using a  discount rate of 8%  per
   annum.  During  1999 the Company  accrued interest in  the amount  of
   $20,100 through June 30, 1999.

   As the RIAA  has rejected the  most recent settlement  offer with  no
   counter offer, the Company will not continue to accrue any additional
   provision for  settlement of  the dispute,  nor will  it continue  to
   accrue legal costs related to the matter, however, it is management's
   opinion that  the  accrual balance  is  a "best  estimate"  based  on
   current circumstances.
<PAGE>

                             TM CENTURY, INC.

                  MANAGEMENT'S DISCUSSION AND ANALYSIS OF

               FINANCIAL CONDITION AND RESULTS OF OPERATION

   TM Century, Inc. (the "Company") is engaged primarily in the
   creation, production, marketing, and worldwide distribution of
   compact disc music libraries, production libraries, comedy services,
   station identification jingles and commercials for broadcast media
   use.

   TM Century's clients include radio and television stations; radio,
   television, satellite and Internet networks; web sites and portals;
   the American Forces Radio Network; numerous advertising agencies and
   commercial businesses.

   Forward-Looking Statements
   __________________________

   This Quarterly Report contains  forward-looking statements about  the
   business, financial  condition  and  prospects of  the  Company  that
   reflect assumptions made by management and management's beliefs based
   on information currently available  to it.  The  Company can give  no
   assurance that  the expectations  indicated by  such  forward-looking
   statements will  be realized.   If  any of  management's  assumptions
   should prove  incorrect, or  if any  of the  risks and  uncertainties
   underlying such expectations should materialize, the Company's actual
   results may differ  materially from those  indicated by the  forward-
   looking statements.

   The key factors that  are not within the  Company's control and  that
   may have a direct bearing on  operating results include, but are  not
   limited to, continued  maturation of the  domestic and  international
   markets for compact disc technology;  acceptance by the customers  of
   the  Company's  existing  and  any  new  products  and  formats;  the
   development by competitors of products using improved or  alternative
   technologies and the potential  obsolescence of technologies used  by
   the Company;  the continued  availability of  software, hardware  and
   other products obtained by the Company from third parties; dependence
   on distributors,  particularly in  the international  market, and  on
   third parties engaged to replicate the Company's products on  compact
   discs; the  retention  of employees;  the  success of  the  Company's
   current  and  future  efforts  to  reduce  operating  expenses;   the
   effectiveness of  new  marketing  strategies;  and  general  economic
   conditions.  Additionally, the  Company may not  have the ability  to
   develop new products cost-effectively.  There may be other risks  and
   uncertainties that management is not able to predict.

   When used  in  this  Quarterly  Report,  words  such  as  "believes",
   "expects", "intends",  "plans",  "anticipates",  "estimates"  and
   similar  expressions   are  intended   to  identify   forward-looking
   statements, although there may be certain forward-looking  statements
   not accompanied by such expressions.  All forward-looking  statements
   are intended to be covered by the safe harbor created by Section  21E
   of the Securities Exchange Act of 1934.
<PAGE>

   LIQUIDITY AND CAPITAL RESOURCES

   The Company relies upon current sales of music libraries and  jingles
   on terms of cash upon delivery for operating liquidity.  Liquidity is
   also provided by  cash receipts  from customers  under contracts  for
   production libraries and weekly music service contracts having  terms
   of up  to four  years.   The Company  is obligated  to provide  music
   updates throughout the contract terms for both production library and
   weekly music service contracts.   Sales of music libraries,  jingles,
   and the payments  under production library  and weekly music  service
   contracts will  provide,  in  the  opinion  of  management,  adequate
   liquidity to meet operating requirements at least through the end  of
   fiscal 2000.

   During the quarter ended December 31, 1999, approximately $49,000 was
   spent  for  the  purchase   of  property  and  equipment,   primarily
   associated with upgrades  of production  equipment. Expenditures  for
   product development  for  the  quarter  were  approximately  $55,000.
   Funds for  operating  needs,  new product  development,  and  capital
   expenditures for  the period  were provided  from cash  reserves  and
   operations of the Company.  The Company's expenditures for  property,
   equipment,  and  development  of  new  products  are   discretionary.
   Product development  expenditures are  expected to  be  approximately
   $185,000 in fiscal 2000. Management  anticipates that cash flow  from
   operations and cash reserves will be sufficient to meet these capital
   requirements at  least through  the end  of fiscal  year 2000.  The
   Company has no other significant commitments for capital expenditures
   in fiscal 2000.


   RESULTS OF CONTINUING OPERATIONS

   Comparison of the Three-Month Periods Ended December 31, 1998 and 1999
   ______________________________________________________________________

   In the three-month period ended  December 31, 1999 revenue  increased
   $112,000 or 7.5%  as compared  to the  same period  for the  previous
   year. Advertising revenues  from barter sales  of music services  and
   production libraries  were responsible  for  a $178,000  increase  in
   gross revenues.   Jingle revenue increased  $39,000 or  14% over  the
   three months ended December 31, 1998.  These increases were offset by
   decreases in HitDisc and GoldDisc revenues of $76,000.

   Revenues of  weekly HitDisc  and  GoldDisc music  services  decreased
   $55,000 and  $21,000 respectively,  or 19%  as compared  to the  same
   period in the  previous year.   The  decrease in  compact disc  music
   library revenues was due to a decrease in weekly and recurrent  music
   sales for domestic and international customers.  As the compact  disc
   music library market  matures, sales of  compact discs are  generated
   primarily from  changes  in  music formats  or  sales  of  new  music
   libraries or formats  rather than  from conversions  to compact  disc
   music delivery  technology.    The  market  for  compact  disc  music
   libraries to broadcast customers has  reached a substantial level  of
   maturity in the  United States, which  is the market  from which  the
   Company derives most  of its music  library revenues.   A decline  in
   revenues from music  library sales  may result  in a  proportionately
   greater decline in operating  income because music libraries  provide
<PAGE>
   higher  margins  than  the   Company's  other  products.     However,
   management believes the introduction of new products will  counteract
   the declines in revenues from existing music libraries. In  addition,
   the Company  contracts with  third  party sales  representatives  for
   sales in certain foreign markets.  Changes in representatives and the
   terms of ongoing agreements are  expected to favorably impact  future
   revenues from international sales.  Renewals and new sales growth are
   subject to customer acceptance of the new products.

   Production library revenues increased $109,000, or 38.8%.   Increases
   in production library revenue  is due to  the continuing increase  in
   advertising/barter arrangements for the  Company's sales and  imaging
   libraries.  Even though production  library revenues may decline  due
   to the expiration of  three-year contracts, management believes  that
   production libraries will continue to generate a significant  portion
   of  overall  revenues  from   sales  of  existing  products   through
   advertising/barter  arrangements  and  sales  of  new  products.  The
   Company continues to concentrate on  new product development in  this
   category and  has  broadened  the  target  market  beyond  the  radio
   broadcast industry to include television, post production houses, web
   sites, and  commercial businesses.  Sales and  new sales  growth  are
   subject to customer acceptance of the new products.

   Revenues for Jingles increased  $39,000 or 14 %  primarily due to  an
   increase  in  demand  for  domestic  syndicated  and  custom  Jingles
   compared to the same quarter last year.

   Commissions decreased $2,500 as a result of decreases in commissioned
   international sales  of  $67,000  offset by  a  $64,500  increase  in
   advertising commissions.

   Production, programming  and  technical costs  decreased  $36,000  or
   6.9%, and as a percentage of revenue decreased from 34.8% to  30.11%.
   The decrease  in  costs was  primarily  due to  reduced  amortization
   related to product development costs for production libraries.

   General and administrative costs decreased $90,000 or 16% as a result
   of the Company's  continued efforts in  reducing operating  expenses.
   These efforts included subleasing a  portion of the Company's  office
   space, restructuring management salaries  and reducing the amount  of
   bad debt expense by continuing an aggressive collection policy toward
   accounts receivable.

   Selling costs  increased $53,000  or 30.7%,  and as  a percentage  of
   revenues increased from 11.6% to 14.1%.  The increase in expenses  is
   due to an increase in sales salaries as a result of changes in  sales
   force and in-house commission plans.

   Depreciation and  amortization of  property and  equipment  decreased
   $33,000 or 41%, primarily due to more depreciable assets nearing  the
   end of their depreciable years.

<PAGE>
                        PART II. OTHER INFORMATION

   Item 1. Legal proceedings

   On May 22,  1998, the Company  received a letter  from the  Recording
   Industry Association of  America, Inc.  ("RIAA") alleging that it was
   illegally duplicating sound recordings of the RIAA's member companies
   in its Mobile Beat  Series I and II  and Mobile Beat Holiday  Series.
   The RIAA alleged substantial damages in the amount of $76,000,000 and
   stated that it would consider a pre-complaint settlement.  Settlement
   discussions then ensued  and are continuing.   On June  30, 1998  the
   Company and its  counsel met with  RIAA  and  its counsel.   At  this
   meeting the RIAA made a demand for $3 million to settle the  dispute.
   In September,  1998  mediation  was  undertaken  with  no  settlement
   resulting.

   Thus far no discovery has been undertaken.  The Company believes that
   it has a meritorious defense to  many of the claims asserted, but  it
   is possible that  it will  not prevail if  the matter  is brought  to
   litigation.   Any  significant  cash amount  paid  in  settlement  or
   awarded in  judgment  would likely  have  an adverse  effect  on  the
   Company.

   The Company recorded a reserve for  possible loss of $385,000 on  the
   terms of  its latest  settlement offer  based on  annual payments  of
   $50,000 over a period of eleven years.  The recorded reserve reflects
   a discount of the  settlement offer using a  discount rate of 8%  per
   annum.  During  1999 the Company  accrued interest in  the amount  of
   $20,100 through June 30, 1999.

   As the RIAA  has rejected the  most recent settlement  offer with  no
   counter offer, the Company will not continue to accrue any additional
   provision for  settlement of  the dispute,  nor will  it continue  to
   accrue legal costs related to the matter, however, it is management's
   opinion that  the  accrual balance  is  a "best  estimate"  based  on
   current circumstances.


   Item 2. Changes in securities - Not applicable.

   Item 3. Defaults upon senior securities - Not applicable.

   Item 4. Submission of matters to a vote of security holders - Not
   applicable.

   Item 5. Other information - Not applicable.

   Item 6. Exhibits and Reports on Form 8-K - Not applicable

   (a) Exhibits
   10. Material Contracts:  None.
   27.1   Financial Data Schedule

   (b) Reports on Form 8-K
   No reports on Form 8-K were filed by the Company during the three
   month period ending December 31, 1999.

<PAGE>
                                SIGNATURES

   In accordance  with Section  13 or  15(d) of  the Exchange  Act,  the
   registrant caused  this report  to be  signed on  its behalf  by  the
   undersigned thereunto duly authorized.

                                      Dated:

                                      TM CENTURY, INC.


                                      BY:/s/Teri R.S. James
                                      Teri R.S. James
                                      Vice President of Finance
                                      (Principal Accounting Officer)


                                      BY:/s/R. David Graupner
                                      R. David Graupner
                                      Chief Executive Officer
                                      (Principal Executive Officer)