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The launch of Pressplay, the joint venture between Vivendi Universal, and Sony Music Entertainment, is being pushed back to the fourth quarter, says Jean-Marie Messier, Vivendi chief executive.

The subscription digital music service was to launch in September. Messier cited the recent terrorist attacks in the United States as a reason to delay the rollout of the service.

"Our Pressplay will be launched in the beginning of the fourth quarter," Messier says. He did not give a specific date.

The music service will face competition from a relaunched and fee-collecting Napster. It will also be rivaled by MusicNet, the digital music distribution company formed by AOL Time Warner, Bertelsmann, EMI Group, and RealNetworks.

However, the U.S. Department of Justice is reportedly investigating both Pressplay and MusicNet for possible antitrust violations.

Rivaling Napster

Pressplay was organized as Vivendi's and Sony's corporate answer to the formerly free peer-to-peer music service from Napster. In an attempt to strengthen Pressplay's potential market position, Vivendi and Sony also partnered with Microsoft for its digital media technology and its MSN Internet service.

Napster recently announced it has signed a preliminary agreement with a group representing U.S. songwriters and music publishers in an effort to end some pending litigation. The agreement also seeks to give songwriters a cut of Napster's revenue when it launches a fee-based service later this year.

Pressplay's parent companies do not expect to see any positive revenue flow until at least the end of 2002, Vivendi Vice Chairman Edgar Bronfman adds.

"We'll be investing in Pressplay certainly in the fourth quarter and throughout 2002 before we see it turn positive. Pressplay is a new business, and there are very few new businesses that contribute positively to the bottom line in the first month or two of operation," Bronfman says.

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