The PAN Network Introduces the OneSource e-CD(TM) Distribution Network

The PAN Network, the birthplace of online digital audio, is pleased to announce the launch of the OneSource e-CD Distribution Network; a totally digital distribution system for the online sale and delivery of e-CDs through affiliated retail websites throughout the world.

An e-CD(TM) is similar in content to a physical CD, but is downloaded directly to the buyer's computer. In addition to the music tracks, it often contains more artwork, lyric sheets, photos, and other inserts than a physical CD might. What is or is not included with the music tracks is completely at the record label's discretion.

By saving the high costs of manufacturing, shipping, inventory stocking, and other "bricks 'n mortar" expenses, the savings can be passed on directly to the consumer to dramatically reduce the purchase price. Yet the artist, label, and retailer retain approximately the same profit margins as they would receive from physical CD sales. And, given the high elasticity of CD pricing, lower prices would be expected to translate into higher sales volumes.

Buyers who only want one or two tracks from a CD have the option of buying individual tracks, at the record label's discretion. Participating labels have the option of offering their product for sale by the track only, in its entirety only, or both. Labels can also determine whether or not tracks can be listened to prior to purchase.

The OneSource system is built on PAN's patent-pending anti-piracy platform called "DIF," or Digital Interactive Fingerprinting. Besides protecting the downloaded tracks, photos, and cover artwork from abuse through online piracy, DIF also allows each e-CD to be personalized at the point of purchase. Personalization enables a buyer to recover an e-CD without having to purchase it again if they ever have a computer disk crash or otherwise lose their computer files. Personalization also allows labels to design individualized promotional inserts that can be included with any e-CD, as well as a number of other applications.

OneSource is extremely flexible. It can be used on a turnkey basis by any copyright owner, and optionally from their own website where their music files are stored. It can be used on a private-label basis by affiliated retailers who wish to retain their branding and display their own logos. It can be used transparently by aggregators and portals who have copyright and license clearances and who handle their own credit card transactions. Or it can be used directly by record labels and individual artists by adding titles to the OneSource catalog and storing the files on the OneSource servers.

Promotional tie-ins and brand building programs are built-in to the system, allowing labels to achieve higher visibility for their artists. These programs are completely optional and include sponsorship and licensing opportunities from advertisers and corporate sponsors engaged in brand loyalty and incentive programs.

Labels and artists interested in adding their CDs to the OneSource catalog can do so at onesource.pan.com. Retailers interested in becoming affiliates can register at onesource.pan.com/retailers.html.

Established in 1981 as the world's first online service for the music industry, The PAN Network is the birthplace of online digital audio, as well as many other important innovations in widespread use on the Internet.

For further information, please visit onesource.pan.com/.