http://www.mp3.com/news/197.html Exclusive: Microsoft Prepares Breakthrough MS Audio 4.0! By Doug Reece March 11, 1999 Sources say that Microsoft will release MS Audio 4.0--a new file format that compresses audio files to half the size of an average MP3 file while improving sound quality--sometime in April. The company also plans to distribute free encoders for the ASF (advanced streaming format) audio. "It's a high-priority over there with 'The Owner,'" says one source. Sources say the format will have a security feature built in, but reports are mixed as to MS Audio 4.0's e-commerce capability. Some believe the format will launch with commerce functions built in; others say it's not clear how far along Microsoft is with commercial applications. According to another source in the music industry, Microsoft has been approaching the major record labels over the last few weeks to discuss the new format. Some labels have also been solicited for music content, which Microsoft plans on including on a demo CD that contains 10 hours of music in the MS Audio 4.0 format. Initially, MS Audio 4.0 can only play on Windows Media Player, which raises questions about Microsoft's strategic position. It will also play on Windows CE devices (hand held PCs). "They're not trying to squeeze out anybody," says yet another source. "They don't fancy this as another Liquid Audio and they're not looking at this as a means to extend their world domination. They're just providing you with another alternative." The launch of MS Audio 4.0, if true, also brings into clearer picture Microsoft's recent investment in Reciprocal Inc. (formerly the Rights Exchange, Inc.). According to a press release from Redmond, the equity stake in the digital rights management company is "the first step in a relationship in which the companies will work together to build the emerging digital content distribution and commerce industry." It's expected that Microsoft will tout the format at its Got ASF? web site (http://www.microsoft.com/sbnmember/osig/gotasf.asp).