Loudeye Corp. (LOUD)

[excel]

This article last month really helps to explain the renewed interest and the timing of this companies emergence into this area as a major player.

Investor's Renewed Interest in Digital Media Boon for Seattle Company
By Brier Dudley, The Seattle Times
Jun. 4--Investors directed their apparently renewed interest in digital media toward Seattle's Loudeye yesterday, pushing the company's stock up 140 percent.

The stock rose from 53 cents to close at $1.27 on the Nasdaq Small Cap Market, then climbed to $1.52 a share in after-hours trading.

Loudeye encodes and distributes digital music and videos for record labels and retailers. It also provides Webcasting services to corporate customers.

The company was a stock-market darling when it went public in early 2000 and investors were excited about the promise of its large distribution system.

But Loudeye's stock has since dwindled as the company lost millions waiting for digital-media distribution to become widespread.

Now the shift to digital is gaining momentum, helped in part by the music industry's desperation and the success of Apple Computer's new online music service, Loudeye Chief Executive Jeff Cavins said.

"The pressure is on and Apple has helped, I think, educate the industry that it's not that scary, there are people out there that will buy content if you make it easy and fast -- it has to be easier and better than it is to steal it," he said.

Investors also may be piqued by a series of deals announced by Loudeye in recent weeks, including one with New York music catalog The Orchard that was announced yesterday.

Earlier, it announced deals with the EMI record label, Amazon.com and AOL.

Yesterday's showing was reminiscent of Loudeye's initial public offering in March 2000 when the stock jumped 150 percent. But back then the gain was from $16 to $40.

-----

To see more of The Seattle Times, or to subscribe to the newspaper, go to http://www.seattletimes.com.

(c) 2003, The Seattle Times. Distributed by Knight Ridder/Tribune Business News. LOUD, AAPL, EMI, AMZN, AOL,