In a disclosure to the Philippine Stock Exchange, Music Corp. corporate secretary and legal counsel Jimmy Soo said the company’s board of directors has resolved to underwrite the required financing of up to $300,000 to protect Music.com, a 19-percent subsidiary, from bankruptcy.
The New York-based music portal was incorporated in 1998 and was positioned to become the premier worldwide music web address. With properties spanning North America, Europe and Asia, it was rapidly becoming "the music network" for industry professionals and fans worldwide, offering local community music information, content and services.
The company also provides individual artists and record labels with unique offline, grassroots marketing, the online promotion of their all-inclusive, co-branded website. Music.com maintains neutral and non-competitive relationships with all record labels and digital download technologies, having formalized agreements with several record labels, including Universal Music Group, the largest in the world.
But the proliferation of other music websites took its toll on Music.com’s operations as these competitor companies set out more affordable (even free) access and more innovative concepts that drew bigger audiences to their sites. Among the best-known music portals include Napster, Amazon.com, MTV and Sound buzz.com. – Conrado Diaz Jr.