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

To: Jon Stept who wrote (8963)	1/5/2000 5:23:00 PM
From: Ted Downs	Read Replies (1) \| Respond to of 18366

Jon, I mean, isn't like saying that Nabisco will now sell all their food online? Nabisco doesn't sell food to consumers, the supermarkets do. Is the suggestion that the music companies would sell their music directly to the customer? Is that realistic? Are there any examples of any music, software, publishing (purely electronic products) that sell directly to the consumer? I would expect a software company to be the first to do this as they tend to embrace and drive change and are in a very competitive industry, but not a 60 year old music cartel that has a monoply on content. First, yes there are many software companies that sell direct. That's not to say that music companies will but they have to license those people that want to sell direct online. $$$ come from licenses. If Nabisco sold their food online they wouldn't have to package, ship, warehouse and on and on. Cost goes down. Now they can #1 pocket the savings #2 pass on some of the savings to a distributor #3 find that General Foods is also doing this at savings & compete with lower prices The suggestion is lower costs. Efficiency produces savings for everyone (in theory). The music industry has to compete even though you feel they have an absolute monopoly. If they feel that XYZ Music is selling a country star's music cheaper than their country star's music is sold then don't you think they want to sell his music at competitive prices also. Don't you think music buyers shop at music stores,looking for specials, discounts in clubs etc. Yes, believe it or not there is competition in music sales. Now, online music buffs are downloading "music" in file formats on mp3 players. They are buying some of this and getting some for free.If you were in the music business would you feel threatened? Of course you would but you don't want piracy so what do you do. You talk to technology companies and get a secure system so you don't get ripped off but you compete with the "new" guys online. It's gonna happen and that's where edig steps in. This is how I size up the situation and yes the music industry has no choice but to get involved. IMHO Ted

To: Jon Stept who wrote (8963)	1/6/2000 3:04:00 AM
From: cAPSLOCK	Respond to of 18366

I think the reason the music companies are getting involved with this at all is because of the licensing issue. Their music is being pirated and distributed over the internet, and they want to prevent that. They are being reluctantly being pulled into it, they aren't pushing it. Bingo Jon, You just hit the nail on the head. That is one of the interesting things about the internet. It always has been the ultimate medium for the FREE exchange of information. Companies that have learned to make money off THAT concept are the ones that have made money on the internet. So the smart folks at record companies are thinking up ways to do this very thing. Because if THEY don't do it, eventually someone else will. Think of it this way... here are two companies that have been profitable on the net: Yahoo and Ebay. Neither of them sell anything. They are sites that offer free information. Simple as that. The reason companies like this are the first to become profitable is simply because they have small overhead, and are following the Internet zeitgeist: they deal in the free exchange of information. Now music offers a different sort of challenge. The content itself is what has been sold traditioanlly similar to the way books have been sold. As a tangible product. And this is the next tier of profitable internet companies. People who deal in tangible goods. (like AMZN) Just because the media can be manufactured (and theoretically sold) electronically doesn't mean that this will stop the sale of traditional product. At least not yet. Conversely, the sale of music on tangible media will not stop the electronic distribution. Newspapers and magazines have figured it out. Stock brokerages have figured it out. Even retailers are starting to catch on. The simple fact remains that the first businesses to sucessfully gain brand recognition in digital music will most likely control the market for a good deal of time. How they do it is the million dollar question... but they WILL do it. As to edig... what an exciting few days. I bought alot of shares of NCII around .80 a few years ago after gaining an understanding of their technology. I must admit that there was a period of time that I considered writing the stock off. We still have a ways to go. The hocky puck and the thermostat (admit it! ;) have yet to be seen in stores. ;) The thermostat is obviously a mock up. But the news is good, and the company has some visible stuff on the horizon! regards, cAPSLOCK