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

To: PartyTime who wrote (10729)	2/4/2000 10:44:00 AM
From: bob	Read Replies (1) \| Respond to of 18366

To da moooooooon we go! Friday February 4 6:00 AM ET BMG's Zelnick lauds digital leaps By Marc Graser SAN DIEGO (Variety) - While Hollywood worries that the Internet may shrink its coffers, Bertelsmann Music Group president and CEO Strauss Zelnick told a high-tech summit Thursday that the digital downloading of music and films will only expand the markets for entertainment content. ``Digital downloading is the holy grail,' Zelnick said during his keynote address at the Variety Interactive Summit. ``The explosion of consumer interest from digital downloads will be the best thing that ever happened to retailers. Security is important, but it's not the be-all and end-all.' Pay TV and VCRs were once feared as major threats to the television networks and movie studios, and now the same fears have sprung up regarding the Internet, he observed. ``The VCR ended up creating new enthusiasm for the film market as a whole,' Zelnick noted. The Internet ``will do the same for the music business. More customers are good for us. This is real. It's not going away.' He added, however that piracy is a problem that ``can't be defeated by copy protection. CDs still aren't copy protected.' Zelnick promised that BMG will focus on heavier promotion of its music artists, e-commerce offerings and digital downloads online. Having taken the reins of BMG in 1998 after nearly four years as president and CEO of the company's North American business unit, Zelnick especially stressed the promotion of individual artists. BMG distributes Arista, RCA, Jive and Ariola, among others; artists in the BMG fold include 'N Sync, Puff Daddy, Kenny G, Sarah Mclachlan, Whitney Houston and Annie Lennox. ``People don't buy an RCA record, they buy a Whitney Houston record,' he asserted. ``Awareness is a huge problem in the record business. Breaking out a new artist is our biggest challenge.' But keeping in touch with how consumers use the Internet is another challenge companies aren't considering, Zelnick said. Among Zelnick's forecasts for the future of the music biz: - CDs are obsolete and will be replaced by computer chip-based devices that store music but still enable consumers to carry them around. Estimated market penetration: two to three years. - There will not be one Internet music downloading and storage standard. - The consolidation of the music business will continue due to cost-savings considerations and maturation of the CD business. - Traditional media giants with cash flow and strong revenues will win out among the Internet players. Zelnick said little on the succession controversy at BMG's Arista Records powerhouse, where 66-year-old president and founder Clive Davis is being squeezed out by BMG brass in favor of R&B producer Antonio ``L.A.' Reid. ``Any time you talk about management and succession, it must be handled with delicacy. I hope it will be resolved that way,' Zelnick said. Reuters/Variety