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Blockbuster, Ibm Hear Only Static


In Business This Week

BLOCKBUSTER, IBM HEAR ONLY STATIC

COMPACT MUSIC DISKS ON DEmand. Great idea. Didn't fly. Blockbuster and IBM have called off their venture to market a system that would have let music retailers create CDs in-house, using data sent over phone lines. Blockbuster says the move doesn't signal a change in strategy but concedes that the market was not ready. Beyond consumer resistance, says a Blockbuster spokesman, "there's the expense of installing the hardware." Not to mention fierce resistance from the recording industry, which feared being left out of the sales loop.EDITED BY KEITH H. HAMMONDS


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