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.

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