Replies to post #48364 on e.Digital Corporation (fka EDIG)

[drag and boogie]

lol sentinel...i was pointing out my point on a point on another post. oh oh, repetition.

[Cassandra]

I assume you're raising the point you brought up a couple of times yesterday - asking if other players that came out around the same time included DRM support.

Although the majority of players did not have DRM support, if one looks at sales volume, the percentage with DRM support would be very high since 3 of the market leaders included it - Creative, Rio and Apple (which uses a different DRM).

Creative has DRM support built into its entire Nomad line. Most or all Rio players also have DRM support. The secure content that has been available for a year or two from the subscription services was DRM encrypted, but the fact that free music from P2P sites was still readily available hurt the subscription model. Two things have changed in the last few months - the success of the iTunes model and the intimidation of illegal downloaders through RIAA lawsuits. Now the number of legal content sites is exploding and people who want to transfer music from those sites to a portable digital player must have one that is DRM compliant.

The issue isn't really whether e.Digital was unusual for not including DRM support in the Ody 1000, it wasn't. However, e.Digital (unlike other companies) has been hanging its hat on the availability of secure content as the key to its success for the last 4 years. When secure content was available, demand for e.Digital players and technology would be there. Now that content from all of the labels is both widely available and affordable, e.Digital isn't even in a position to exploit it since none of its players have DRM support. Creative, Rio and other players that have DRM support may be high on holiday shopping lists.

Think of how many posts and articles on EDIG message boards have been posted over the last 4 years about the secure content issue. How many times has it been said that "content is key"? It seems that EDIG investors have been led to believe that e.Digital would be in some sort of leadership position when content was widely available. Now it appears that Creative and Rio and best positioned to exploit the popularity of secure content.

I'm sure it comes as a shock to many shareholders that EDIG chose not to include support for secure content in its players. I know it sure surprised me.

BTW, when e.Digital announced the Ody 1000 in July 2002, it listed DRM support as a feature (as murgirl posted twice yesterday). I wonder why they changed their mind. I assume it was a cost issue.