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Message: RE: Frank

RE: Frank

posted on May 21, 2005 03:14AM
My conversation with Robert mirrored yours. I spoke with him last thursday, a couple of days after your visit. I asked similaar questions and got similar answers. I got the distinct impression they are beyond negotiations. I`m not sure that means signed contracts but it sounds like their ducks are in a row. If you consider what we`re speculating on, there are several contracts with several companies / studios essential to making a kiosk based delivery system happen. I don`t think they could commit to the development of a concept like this without somekind of agreement going forward.

In order for a kiosk based system to function in a competitive enviornment at least one studio has to be on board. I don`t think a viable business plan can be demonstrated without some sort of scale built in. The concept needs to involve a marketplace that reaches out to a broad cross section. Consider that the studios have already transcoded content for the airlines so that aspect and cost has already occurred. The relationships already exist. In some cases going back to SDMI (the music iniatiative) Even with that as a given, the business plan would still require a partnering with a significant retail entity in order to achieve the kind of scale to make it all worthwhile.

It certainly seems something along those lines has happened as it appears that there are multiple PR`s pending. This could explain the confidence expressed by Robert in both our confersations.

Larry

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