The MP3 format has generated significant resistance from music companies, who say it will encourage piracy. The music industry is working on its own secure standard for distributing music on the Internet.
In what appears to be a nod to the music industry, Creative said it would not follow archrival Diamond Multimedia's lead with a dedicated MP3 player. Instead, Creative will make a player to handle "all formats," according to Eion Leyden, the company's European brand manager. "MP3 is not going to rule the roost," Leyden said. "We could do a Rio-type product, but that would be a short-sighted."
Leydon hinted the player may even develop into a car audio system.
Nonetheless, Leyden predicted the trend towards Internet music would eventually lead to lower prices for music.
"The music industry should definitely worry about the Internet. Soon there will be official sites to download tracks, and in a few years' time, we will see a significant shift down in price for retail CDs."
