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First Label-Sanctioned Digital Music Sharing Service Announced
Posted: 05-Apr-2001 [Source: Hit Hive press release]

[HitHive to bring a vast amount of EMI's music catalog to mobile handsets and PDAs.]

Los Angeles, Calif. and Seattle, Wash. -- EMI Recorded Music and HitHive, Inc., today announced a groundbreaking agreement for the use and distribution of a vast amount of recordings from EMI's music catalog in digital format. The two companies have signed a strategic agreement that delivers the next generation of digital music services and liberates music from the PC. Through HitHive's business partners, consumers will have worldwide access to EMI's artists' music via all types of portable devices including wireless phones and PDAs.

This agreement makes HitHive the first company to deploy a sharing platform approved by a major music group. The HitHive patent-pending sharing platform creates a natural viral marketing mechanism that exposes consumers to music and drives sales.

"Bringing EMI's music to the wireless world will allow music fans to enjoy their favorite artists anytime, anywhere," said Jay Samit, senior vice president, EMI Recorded Music, "HitHive's technology will allow consumers to bring the music that is the soundtrack to their lives wherever they go."

On a reasonable and limited basis, consumers will be able to easily share their favorite EMI songs with friends and family around the globe. Using HitHive's patent-pending Loan and Borrow feature, consumers will be exposed to new music in a manner that fully respects the rights of artists and copyright owners. HitHive's controlled system allows users to invite friends to listen to their music. Friends may then listen through a PC or other music playback device for a specified number of plays. Once they have listened to a shared track, they are given the option to buy the song or album and have it automatically loaded into their own collection. HitHive's system also offers consumers the ability to store, manage and play music from virtually any Web-compatible device. Additionally, consumers can rate songs, review cuts and trade opinions with other music fans via HitHive.

Today's agreement also grants HitHive the opportunity to offer more revenue-generating services for its business partners. Benefits include music subscription services, music-based promotions, music samples, commerce in digital music and streaming and downloading features.

"HitHive is harnessing the excitement of sharing digital music with friends while incorporating the controls needed to protect copyright owners and open an untapped revenue stream. The result is a system that appeals to the music industry and consumers alike," said Mark Tucker, chairman and CEO, HitHive. "Partnering with EMI expands what we can offer our business partners."

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