Gateway tests waters of music business

The Poway, Calif.-based PC manufacturer is examining a number of strategies that could effectively turn the company into a player in the music publishing and distribution business.

Gateway already maintains a site, MusicZone, where select singles can be legally downloaded, but in the future the company's involvement could extend to launching Web sites with a larger selection of music; it may even promote new and upcoming artists.

"We are actively in discussions with major and independent labels and (are) talking with established acts about bringing the music-business model into the present day," said Brad Williams, a company spokesman.

Digital technology is changing the traditional relationship in the music industry between artists, publishers, distributors and consumers. The shake-up has opened the door for new players. With the advent of MP3 files and recording CD drives, the PC has become the nerve center of the home stereo.

File-swapping networks have also changed the way music is bought and sold. Instead of buying a complete CD, people can go online and get singles from famous as well as unsigned acts.

News source: CNet News - Gateway tests waters of music business

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