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Shareware Music Machine News
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AOL purchases Nullsoft and Spinner.com

Date posted: June 3 1999
By Geoff Nicholson

America Online is making massive moves to become a massive player with both Internet radio and online audio listeners thanks to a $400 million dollar deal with Spinner Networks and Nullsoft.

By purchasing both companies, AOL effectively becomes a music and programming network overnight with great potential to lead the way in online digital delivery.

Spinner.com broadcasts 2 million songs daily and claims around 1.5 million listeners a month. It's catalogue contains over 175,000 songs from more than 350 record labels.

Nullsoft is the developer of Winamp, a very popular audio player which is downloaded over a million times per month. It also offers SHOUTcast, an MP3-based audio broadcast system that allows any Internet user to, in effect, set up an online radio station.

It is expected that AOL will face direct competition in the marketplace from Yahoo! Inc., which has agreed to a $5.7 billion deal with Broadcast.com, as well as the Lycos RadioNetwork. Independent companies such as MP3.com may also prove to be a sleeping giant as the site's popularity continues to grow.

AOL has been quoted as saying it will use the Spinner and Nullsoft products and services play all the major Internet music formats, including Liquid Audio, AT&T's Corp.'s a2b and the Secure Digital Music Initiative (SDMI).

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