• by Ross Fadner , April 30, 2004

CNET Networks acquired an ailing MP3.com late last year with the hope of relaunching and repositioning the Web site as an information portal for the online music industry. After months of renovation, the new MP3.com goes live today with Nvidia, the graphics chipmaker, as a launch advertiser. Deals with additional advertisers in the technology, games, consumer packaged goods, and music sectors are in the pipeline, although CNET declined to name them.

The revamped site will focus on music search, discovery, and community, and will offer personalization, comparison, and information services, according to Vince Broady, senior vice president, games and entertainment, CNET Networks.

Broady, who also heads CNET's popular gaming site GameSpot, says that GameSpot recently conducted a survey among its users in order to get better information about their favorite Web sites across various vertical categories. He says that most categories had clear winners--like ESPN.com for sports and Google for search--but results for digital music were very fragmented, indicating a need within the industry for a site devoted to objective information in online music.

"The GameSpot audience is largely connected to digital music," Broady notes. He says that Internet music and tech gadgets fit into their lifestyle, and they're "savvy enough to know that they don't know everything about music," he says. GameSpot's audience is dominated by the notoriously aloof 18-34 male. GameSpot generates 4-5 million unique users and 145 million page views per month, according to Nielsen//NetRatings.

Broady adds that CNET hasn't forgotten about the independent artists who used to publish their music on the old MP3.com. While the new MP3.com will be focused solely on licensed music from the major record labels, CNET's Download.com recently added a feature for independent artists to publish music for users to download for free.

MP3.com covers 700 genres of music. Per a licensing agreement, 15- and 30-second clips from each song in MP3.com's database will be available for preview, according to MP3.com Director Tim Mitchell. "We bring a more media-based angle," says Mitchell of the site's positioning, and adds that the site draws from the CNET ethic of presenting technology news from a non-partisan perspective.

Mitchell says the site will be focused on discovery and usage. The purpose, he says, is to determine which music selections are available through various digital services, and to compare costs and device compatibilities.

The site will also feature playlists published by users, artists, and celebrities. Mitchell says that he expects ad revenue to offset the cost of licensing the music clips.

According to Phil Leigh, Senior Analyst, Inside Digital Media, it will be interesting to see whether MP3.com will be able to generate the traffic necessary to draw advertisers. Leigh notes that MP3.com's name is one thing the Web site has working in its favor.

Within the music industry, "MP3" is by far the most expensive keyword search term. Leigh adds that the major for-pay digital music services all sell music in the mp3 format. "Because of the popularity of that term, it's a reasonable wager that [MP3.com] could make something out of [its efforts]," Leigh says.

Should MP3.com generate a lot of traffic, Leigh says it would be "a natural, obvious" evolution for MP3.com to start selling music, too. CNET executives say the company has no plans to sell music via MP3.com.

Even so, Leigh believes that there is a market for an arbitrator within the paid online music industry. "When it comes to digital players, there's still a lot of confusion about what's best. ... An independent source to sort through the possibilities could be helpful," Leigh notes.

MP3.com will promote legal music and sites only. At launch, the site will be free to all users, but Broady says that a member subscription model similar to the one employed by GameSpot could be implemented by the fourth quarter.

Should MP3.com implement a subscription model, Leigh says, "they'll have a hard time charging for it, but if they get a lot of traffic, they won't have trouble getting sponsors."

CNET has created an online ad campaign to support the relaunch with the tagline "Your way into music." The effort, created internally, will run across the CNET network of sites, including GameSpot, Download, and mySimon, and on Billboard, Lycos, Edmunds, and Rolling Stone, among others. Media buying and planning was also planned internally.

The interactive ads with sound position the new MP3.com as a destination for all types of music lovers, regardless of the genres they favor or the technology they use. One of the creative executions features a GenY-ish guy seated next to a man with a briefcase on the subway. Both are listening to music; copy above the GenY guy's head reads: "Ludwig van," copy above the middle-aged professional reads: "Camper van." Viewers are invited to click on the ad to play it. Strains of Beethoven accompany the ad, along with animated violins.

A different execution shows three schoolkids in uniforms--each likes a different type of music. Clicking on each kid reveals their tastes as viewers hear music clips from the rock, metal, and New Age genres.

Tobi Elkin contributed to this report.