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Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology -- Ignore unavailable to you. Want to Upgrade?


To: Burt Roger who wrote (8646)11/30/1999 12:56:00 AM
From: bob  Respond to of 18366
 
All,

IN CASE YOU HAVEN'T NOTICED, TAKE A LOOK AT WHAT TIME-WARNER AND UNIVERSAL ARE DOING.

Time Warner, Inc. today launched an online entertainment hub
from which it could begin selling downloadable music by the end
of the year, becoming the second Big Five record company
looking to provide online promotion for relatively unknown
artists.

Designed as a one-stop destination for Time Warner's various
properties, including Warner Music Group, Entertaindom serves
as a showcase for newly created and repurposed programming
presented through multiple channels devoted to music, movies,
television and games [see 11.24.99 Warner Bros. Online
Launching Entertainment Hub].

Although Time Warner has not outlined its downloadable music
retail strategy, Entertaindom will be a primary sales and
promotion outlet for such content, possibly by the end of this
year, according to Jim Moloshok, president of Warner Bros.
Online, and executive in charge of Entertaindom.

Warner Bros. Online's strategy calls for creation of an
Entertaindom MP3 area, which will allow unknown artists to post
free music, and more established acts to sell downloadable
music, Moloshok said.

Earlier this month, Seagram Company's Universal Music Group
announced formation of FarmClub.com, a web site that will
invite musicians to post tracks, in order to receive feedback
from industry A&R reps and fans, and potentially benefit from
exposure on a weekly cable television show to be produced by
USA Networks [see 11.09.99 Universal Music Launches
Internet-Focused Label].

In developing these new web sites, the Big Five labels have
taken a page from MP3.com's playbook.

The leader in downloadable music on the Internet, MP3.com
offers music by nearly 27,000 artists, and provides more than
154,000 free downloadable songs to promote CDs by those
artists.

Unlike MP3.com and similar sites, however, Entertaindom will
highlight content provided by Warner Music Group, as well as
other media outlets, as part of a "non-denominational"
approach, according to Moloshok.

For Warner Music Group and other record labels, Entertaindom
serves as a venue for showcasing music videos by their artists,
as well as reviews, news and interviews about artists from Time
Warner's Entertainment Weekly magazine.

The music area of Entertaindom currently features music videos;
"Rhino Pop Retro," a weekly program of music nostalgia and
culture content programmed by Warner Music's Rhino Records;
music news and reviews from Entertainment Weekly; and music
charts provided by Billboard.

Music retail is being handled by Kabang.com and by CDnow, the
latter of which is in the process of merging with Columbia
House, which is jointly owned by Time Warner and Sony Corp.

Like Time Warner, Sony Corp. is readying launch of a
non-branded online music destination, known as Uville [see
7.21.99 Sony Music Planning Non-Branded Music Site].

Slated to launch this fall, Uville will offer music news and
reviews, alongside music and merchandise sales. The site will
offer downloadable music sales as part of Sony's strategy to
offer digital music using Microsoft's Windows Media Audio
format [see 5.12.99 Microsoft and Sony Pair for Downloads,
Promotions].

With their joint ownership of Columbia House and CDnow, Sony
and Time Warner could share content and sales, similar to the
way Universal Music and BMG operate GetMusic.

Entertaindom is one of several Internet hubs Time Warner plans
to launch, according to reports, with others focusing on news,
sports, information and finance.

The multiple hub approach moves Time Warner away from its
previous web concept, the Pathfinder Network, which upon launch
in 1994 aggregated content from several Time Warner properties.
Presently, Pathfinder.com is the online home for Time and Life
magazines.

Next month, Time Warner will launch an online marketing and
advertising campaign for Entertaindom. Early next year, that
effort will be expanded to print, radio and television
initiatives, valued at approximately $30-35 million, according
to Moloshok.



To: Burt Roger who wrote (8646)11/30/1999 1:58:00 AM
From: bob  Read Replies (2) | Respond to of 18366
 
MIAMI HAROLD ARTICLE ON E.DIGITAL CORPORATION

Published by berge on RB.

Published Tuesday, November 30, 1999, in the Miami Herald

DESIGNS ON THE FUTURE
BY FRED TASKER
ftasker@herald.com

THE TEAM: Ecstatic Miami-Dade's Design and Architecture Senior High (DASH) students are, from left, Michel Alvarez with his winning design, Eric Telfort, Jing Chen, Lucion Telfort, Jose Ortez and Duane Lawrence, and counselor Deborah Singer. Below is a prototype of the miniplayer Alvarez designed.
--------------------------------------------------------------------------------

Early next spring, if things go as planned, your teenager will be hitting you up for $200 to $250 to buy the latest really nifty gadget -- a minimusic player that fits in a shirt pocket and plays music downloaded from the Internet.

Blame Michel Alvarez, at least in part. The 18-year-old senior at Miami-Dade's Design and Architecture Senior High (DASH) magnet program just submitted the winning design for the player, which might be sold by electronics giants like Sony and Pioneer.

'There's a very good chance of this happening,' says Fred Falk, CEO of e.Digital Corp., the San Diego firm that chose Alvarez's design. 'Michel's design was very unique. There's nothing like it on the market.'

Falk says e.Digital and its venture partner, Lucent Technologies, are showing the design to companies like Sony, Pioneer, AT&T, Sharp and others that might decide to manufacture and sell it. And the design is receiving rave reviews. The player could be in stores before spring, he says.

How did an 18-year-old full-time student and weekend private-party DJ still wearing braces get in on something this big? It's a story that tells a lot about how products are developed in this lightning-paced age.

The minimusic player idea started last June, as a joint project between e.Digital, a San Diego firm, and Lucent Technologies. Already music lovers can download music from the Internet using the MP3 compressed digital format or by recording music onto CDs.

But new technology now permits downloading music through your computer onto 'compact flash cards' only 1 1/2 inches square, to be plopped into players less than three inches across. The new chips hold 120 minutes or more of music. That's less than the capacity of a full-size CD, but still longer than the 50 or 60 minutes of music that are typically recorded onto CDs by commercial record companies. It's also more than the capacity of MP3 players, which typically play only 60 minutes of music.

ELUSIVE DESIGN

Under the partnership, e.Digital was designing the hardware and software for the new player, and Lucent was hiring a designer for the case, display screen and function buttons.

'But the design company they hired couldn't come up with a drawing that anybody liked,' Falk said. 'They had no pizazz.'

Falk had come to know Deborah Singer, a computer teacher at DASH, when she, doing research into buying e.Digital stock, posted comments on the firm's bulletin board. Falk was so impressed with her views that he contacted her.

And when Singer heard about Falk's design difficulties, she asked him to let her students take a shot at it.

'We were under the gun at that time,' Falk says, 'so I told her, 'We'll give you a week.' '

Singer and DASH administrators chose 16 students from industrial design, architecture and graphics classes -- then on summer vacation -- and called for volunteers to try designing the player.

'I gave them four days,' Singer says.

Singer, a NASA Classroom of the Future master teacher, lent a hand.

'I took them to electronics shops to try things out. We played with machines, pushed buttons, to see what worked.'

Alvarez wasn't intimidated by the challenge.

'I just took it as a fun assignment.'

Already working eight hours a day as an intern at a local engineering firm, and from 7 to 10 p.m. at a Gap clothing store, Alvarez did the design work late at night.

'I came home one night really tired; I was dead. But I had an idea for the design. It just came out of nowhere. I said, 'Why not just a circle?' '

He sat down at his desk, and, between 11 p.m. and 3 a.m., created the four drawings that e.Digital ended up choosing.

Falk was impressed.

'By the end of the week there was a packet at our door with 10 or 15 completed drawings. It was a fabulous job by all the students.'

He chose Alvarez's design. It was attractive, easy to hold and easy to use, he said.

'And it had pizazz.'

'We showed it at our shareholder meeting a couple of weeks ago, and they went crazy over it.'

'TWAS THE SHOES

Alvarez has loved to draw all his life. While he was in the studio art class at South Miami Middle School, he grew dissatisfied with his $100-plus Air Jordan sneakers and designed the perfect pair for himself -- although he never had a way of getting them made.

'I love all kinds of drawing -- still lifes, landscapes, portraits. But now I'm moving from 'art-art' to design art.

He got into electronics as a weekend, private-party DJ, even writing his own rap lyrics -- yet another way to earn money for college.

After graduation, he hopes to attend the Center for Creative Studies in Detroit, or maybe the Rhode Island School of Art and Design.

'I'm debating between transportation design or product design. I have to try them out to see which I like.'

Ultimately, he'd like to open his own firm, designing the automobiles or electronic gadgets of the future.

Right now he's concentrating on earning money for college. So it would be nice if his new minimusic player design could provide some of that money.

Says Falk: 'If we sign up a manufacturer who wants to use this design, we can look into something like that.'