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

To: stun who wrote (11700)	3/23/2000 9:47:00 PM
From: bob	Read Replies (1) \| Respond to of 18366

stun, At this point only e.DIGITAL is licensing the ATRAC3 codec from Sony. To date, Sony hasn't announced that they have licensed anything from us. Some people think, myself included, that Sony will license the MicroOS to be incorporated into their own design sometime in the future. Transcoding is not an opition for anyone wanting to be successful in this market IMO, and Sony is known for its superior quality, thus I would assume they would want a player that plays all codecs with different DRM's natively and seamlessly with no transcoding involved. For them to market a player that is proprietary to ATRAC3 only would be a disaster and they know it. Their latest entry was deemed a failure from the start and I doubt they want at repeat of that. I have no idea if their MC-P10 is that device, but it wouldn't surprise me if they do indeed license our OS. Time will tell. Bob

To: stun who wrote (11700)	3/23/2000 9:55:00 PM
From: Gary Mohilner	Read Replies (2) \| Respond to of 18366

I believe what's exciting is Sony controls several major recording labels. It would make sense that they all use Sony's codec for marketing music over the Internet. Any player that couldn't handle it would be at a tremendous disadvantage, those that convert it to a different form will not offer as high a quality. In addition, this announcement certainly left the door open to the future possibility that Micro OS will be included in new players developed by Sony. Gary