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New Product: Creative jumps on MP3 bandwagon, prepares to "Blast" the Internet with Project Nomad

March 8, 1999

New York, NY. Creative Technology has confirmed that it will jump on the MP3 bandwagon, and develop a line of portable digital players currently identified as Project Nomad. At the same time, Creative has formed content partnerships with several of the leading Internet music distributors, aiming to help drive consumer acceptance of MP3-based portable audio.

Creative, which made its audio mark on the digital world with its SoundBlaster audio products, says its Nomad players will use proprietary technology to make "next-generation, compact, affordable players." The "next generation" spin suggests some degree of technological advance over the ground-breaking Rio MP3 player. The Rio player was introduced late in 1998, and immediately defined a new consumer electronics category. It's made by Creative's arch-rival, Diamond Multimedia.

The market has been waiting for Creative to make its move, says Sim Wong Hoo, chairman and chief executive officer at Creative. He has dubbed the new initiative as Creative's Personal Digital Entertainment strategy.

"Taking these solutions beyond the desktop is a natural extension of our core competence in digital audio," says Hoo, "from semiconductors, to hardware design, algorithm design, software development, and content distribution over the Internet. We will bring compelling portable digital audio products to the market."

Creative says the Nomad players will be able to download content directly from the Internet, or to record directly from an existing CD collection. This is pretty much what the Diamond Rio already does, and what similar units announced by other manufacturers will do. But Creative says it won't just make a player... the firm will use its audio marketing muscle to make an impact on the entire music industry.

"Creative intends on driving the technology, direction, and strategy associated with the creation, playback, and distribution of digital audio content via the Internet," say company spokesmen.

Towards that end, the company has formed partnerships with some of the Internet's digital music distribution majors, including GoodNoise, MP3.Com, Audible Inc., AudioHighway.Com, Audio Explosion, SINC Recordings, and BigHeavyWorld.Com.

"In line with our new Personal Digital Entertainment strategy," said Hock Leow, vice president of the Multimedia Division of Creative, "we will work with our partners to provide one of the broadest arrays of digital audio content available."

Creative says content partners will provide digital audio on CDs bundled with the new players, as well as downloadable content via the Internet.

Web Site: Creative

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