Like many CD-ROM startups that began with high hopes and foundered in a market glutted with tides, Ion, once touted as the world’s first interactive record label, is changing direction. The company inked a $5 million pact with BMG two years ago and produced a David Bowie title called “Jump.” An early exit from the BMG deal has been executed and Ion is bowing out of the crowded consume-product business to focus on software tools. Noted artist and original partner Lou Beach has departed to pursue his advertising business.

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