While the case hasn't been decided, the association wasn't granted a preliminary injunction to stop the Rio from hitting shelves, Marks says. But as the industry tries to snuff out digital bootlegging, companies are recognizing the burgeoning influence of cyberspace in building an audience for musicians and selling music. Microsoft Corp., for example, announced it will launch a software called MS Audio 4.0 to deliver secure music over the Web. And record companies BMG Entertainment and Universal Music Group formed a joint venture this month to create a series of Web sites to promote and sell music. But while the Internet appears to be making record companies vulnerable, a 10 percent revenue increase last year for record labels may show that the damage isn't as bad as the industry fears, says Eric Scheirer, a research assistant at the Massachusetts Institute of Technology's Media Lab.
Garage bands can give fans a taste of what's coming, they say, and use it to test out new songs.
A lot of friends say they download. There's no question that Web distribution will flourish in the next five to 10 years, says Randy Weiner, executive producer of new media for LOUD Records, whose artists include hip-hop bands. At a time when more people are shopping online for access and convenience, they'll turn to MP3 or something like it for the same reasons - especially as technology makes digital downloads easier, Scheirer says. Loud is taking the digital plunge by partnering with Audio Explosion, a company that just introduced Mjuice, an MP3-based music delivery service. There will be more of a radio model.