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

To: cAPSLOCK who wrote (10162)	1/27/2000 3:10:00 PM
From: J.N.N.	Respond to of 18366

Let's follow this logic then..... Why don't the Major artists give the cd's away then? What is that you say? They Sell them? The only groups/bands left putting music on MP3 will be the artists that no one wants now, or ever will. Garage Bands - Yep, a lot of money in those "Musicians".

To: cAPSLOCK who wrote (10162)	1/27/2000 3:10:00 PM
From: Burt Roger	Respond to of 18366

Caps: MP3 is a potential customer of eDig as are all sites, marketers, manufacturers, labels, etc.. The file size, sound quality, security will all improve with or without MP3. Only the labels care about MP3. eDig positioned itself with all codecs and drms. They are not beholding to Lucent's epac and will be able to service all comers. Current consumers/users are using MP3 because that's all they have at this point.

To: cAPSLOCK who wrote (10162)	1/27/2000 3:15:00 PM
From: JimC1997	Read Replies (2) \| Respond to of 18366

cAPSLOCK, It's just supply and demand operating. MP3 files are free, so the demand is high. Secure encoded music will not be free so the demand may be less, but enough will pay to generate huge profits for the music companies. The price point of maximum profit for a monopoly is not the point that maximizes revenues, it is a higher price that maximizes profits (where marginal cost equals marginal demand). The music labels effectively have that monopoly, so they will take whatever action they deem appropriate to maximize profits. This bodes well for e.Digital. MP3 files (and various free successors to that Codec) will always exist and will be supported by the e.Digital music player. But the reason that the music labels will ultimately be the strongest supporters of e.Digital is that the player will accommodate their digital rights management systems. As Kerry has often pointed out, without the ability to process both multiple Codecs and multiple DRMs competitors do not stand a chance of surviving. And since the cost of access to that technology is relatively low (in the form of licensing and royalty fees to e.Digital), I expect that essentially all consumer electronics manufacturers will adopt the e.Digital MicroOS as the standard which enables that multi-Codec/Multi-DRM capability. JimC