Liquid Audio and Adaptec plough ahead with online music

The companies will be working together -- combining Adaptec's CD- Recording software products, Easy CD Creator and Toast and Liquid Audio's Liquid Music Player -- to enable customers to make their own CDs from downloaded tunes.

The system will make music-on-demand a reality, according to general manager of Adaptec's software products group Dave Ulmer, although he was eager to assert any advances would be in accordance with copyright laws. The recent shake-up of Diamond Multimedia, although fruitless, has everyone on their toes.

No products have been announced although Adaptec's Petter Nordwall has something in the pipeline.

According to the International Federation of the Phonographic Industry Internet music could account for about 15% of traditional music store business by the year 2002. During this time analysts at IDC predict that 25% of all CD and DVD devices will have the ability to record CD's.

"The Internet has revolutionised how consumers shop - for books, software, airline tickets and now music" said Robert Flynn, vice president of business development for Liquid Audio. He believes the deal with Adaptec will make it easier for customers to record their own CD's.