e.Digital Corporation (fka EDIG)

[Cassandra]

The security of the content is the actual key. Apple is working with the music labels to protect their content.

Unfortunately, e.Digital made the opposite choice in the design of the Odyssey. Unlike the iPod, the Odyssey can be used to transfer music from one user to another, possibly illegally. It's a strange departure from the former claim of e.Digital that it had the only solution to protect content and that if legal downloadable content were available, EDIG stock will go to moon. Now e.Digital's design facilitates illegal music swapping.

In fact, one Ody 1000 user actually promoted illegal transfer of content as the main advantage of the Ody over the iPod. This is certainly not the way to impress the music labels:

http://www.agoracom.com/nonmemforum/msgreview.asp?id=240727&refid=0&orig=240727

Subject: Only a fool would buy an ipod over an Odyssey 1000
From: sinacull
Date: Wednesday, February 26, 2003 (EST) at 8:27:03 PM

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I have had my O-1000 for about a month now and let me tell you it is one fine piece of engineering. The two major reasons I would buy it over the ipod include a much lower price and the 'mass storage' feature. The first reason is self explanitory the second feature is the overwhelming reason to buy an O-1000. I just transfered my entire music collection to my new computer quickly and easily. I didn't even need any software. I just plugged my player into my new computer and dragged and dropped the whole collection into the computer. I can go over to my friends and drag and drop their music collection into my 0-1000. Right there I have paid for my edig Odyssey 1000. You can't do that with an ipod. Backing up files and photos is a drag and drop cinch. The O-1000 is a clear winner.

Apple's strategy of adding secuity measures has engendered support from the music Labels. Quote from LAT article:

"Sources said Apple will make the songs available for sale through a new version of iTunes, its software for managing music files on Macs. Users will be able to buy and download songs with a single click and transfer them automatically to any iPod they've registered with Apple.

Rather than make the songs available in the popular MP3 format, Apple plans to use a higher fidelity technology known as Advanced Audio Codec.

That approach allows the songs to be protected by electronic locks that prevent them from being played on more than one computer. Still, sources say, Apple wants to enable buyers to burn songs onto CDs. That feature would effectively remove the locks.

That's been a sticking point for executives at Sony, sources said. The other four major record companies, however, appear ready to license their music to the new service."

Link to article (registration free):

http://www.latimes.com/business/la-fi-music4mar04001448,1,2023391.story