To: J.N.N. who wrote (15477 ) 10/20/2000 11:46:46 AM From: bob Read Replies (1) | Respond to of 18366 From WEBNOIZE today. E.Digital Increasing Storage Capacity Support by Dave Brigham E.Digital is building support into its digital audio platform for a new data storage format that holds up to four hours of digital music. Developed by DataPlay, the format is less expensive than other solutions on the market. E.Digital develops a reference design for portable digital audio players that supports multiple audio formats (MP3, Sony's ATRAC3, EPAC, QDesign, AAC and Microsoft's Windows Media), digital rights management technology from InterTrust Technologies, IBM, Liquid Audio and others, and E.Digital's proprietary file management system. Companies licensing the platform may integrate it into a hardware unit of their own design. Currently, devices based on E.Digital's reference design use CompactFlash storage media with on-board capacity of up to 64MB, or about one hour of MP3-encoded music. The devices also support IBM's 340MB removable microdrive. Consumers pay as much as $150 for a 64MB CompactFlash card. Yesterday, E.Digital said it will build support for DataPlay's 500MB storage media format into its architecture. Slated for release early next year, DataPlay's quarter-sized disk can hold up to four hours of music, and will cost between $5 and $10. Last month, Iomega introduced an external media format that retails for $10, but contains only 40MB of digital storage [see 9.21.00 Iomega Pushing Affordable Storage Format, Shipping Branded MP3 Player]. The company is banking that the low cost of its format will convince consumers to buy a new portable device it is marketing. At $299, Iomega's device is priced significantly higher than players from its biggest competitors, S3's Rio ($169 for 32MB built-in memory) and Creative Labs' Nomad II ($219.99 for 32MB built-in memory). DataPlay is backed by S3, Creative Labs, Toshiba, Samsung Electronics, Imation and Universal Music Group. The company's technology has received good reviews from within the industry. DataPlay's format is "tremendous, because it reduces costs to consumers," said Ron Stevens, president and CEO of Digital5, a New Jersey-based company that develops and licenses back-end technology to consumer electronics companies. Stevens would not say whether Digital5 plans to support DataPlay's format. Currently, Digital5's technology is compatible with removable Flash memory cards and microdrives. No portable digital audio players integrating Digital5's technology have hit the market, but Stevens said that as many as four companies plan to release such devices by the end of this year. At least two companies have licensed E.Digital's architecture. Earlier this month, Korea-based Maycom became the first company to distribute a portable player based on E.Digital's design. Remote Solution, the U.S.-based division of Korea's HanGo Electronics, plans to release an E.Digital-based player early next year. E.Digital is in talks with other consumer electronics companies, and could announce such deals in the coming weeks, according to E.Digital President and CEO Fred Falk.