RE: After the good news of the day I am sorry to see the negativism here.
posted on
Dec 22, 2005 01:21PM
I talked so long and about so many subjects that remembering them all will be impossible. However regarding the ``financial partners``, regarding ``selling 4000`` units will make us profitable is not what you all have been thinking. It is an entirely different business model.
Edig has perfected, not just in the last few days or weeks, but for some time, a ``closed system`` business model. The eVu WILL NEVER be seen on the shelf of Best Buy, or Good Guys, etc...It will only be sold to entities that have a specific need and will be offered ``menus`` on the eVu to fit that specific need. It will come fully loaded with content provided by EDig to the specs of the customer. It will also come with EVERYTHING necessary for the customer to maintain the unit and renew the content from time to time. It will have two batteries as part of the package. (by the way the batteries last 10+ hours on high resolution video and at least 20 + on straight audio)
The business set up agreed to by the customers exclude EDigital from ANY other requirements. EDig has nothing else to do but sit back and collect the money.
The content will be provided by a company, company`s who specialize in that business. These company`s have already been approved by ALL the content providers and EDigial has already passed inspection to use ANY content a customer desires.
By the way I asked RP about the patent application for security technology, mentioned in the PR. He told me those patents were applied for a year and a half ago. He also mentioned that the patent for the MOS was applied for in 1992 and was not granted until 1998. So those of you critical of that aspect of the PR might just have to bit your negative tongues.
I THINK THE MOST STARTLING THING I LEARNED WAS EDIG`S BUSINESS MODEL......T H E e V u I S N O T G O I N G T O B E S O L D. It will be RENTED. A full closed system specifically for a customers need, designed by a customer and delivered with ALL the necessary tools to maintain and re-content the unit by the customer. EDig WILL DO NOTHING TO THE UNIT AFTER IT HAS BEEN PUT ON THE UPS TRUCK. (except repair a bad unit still under warranty) When content needs to be refreshed, which may be every 6 months or so due to the usuage in, say a hospital, the customeer calls the ``content provider`` and is sent all that`s necessary to do so. Much as NETFLEX does now. The customer will get ``something`` that was not fully expained to me, in the mail and have a docking station as part of the original equipment delivered with the eVU, hook up the eVu to the docking station and slip in, perhaps a CD, I don`t know, the new content.
EDig has thought of every contingency in this new business model. This will allow for a much lower cost to the customer. No large sums of money will have to laid out initially by the customer, but above all EDIG WILL NOT FRONT ANY SALE OR RENTAL.
Of course any customer MAY BUY the units but all the COMMITTED, AND I USE THAT WORD AS INTENDED, customer want the complete rental package. In fact the original concept of the DP was for Alaska Air was to RENT the units but Mr. Boyer informed the powers to be that purchasing them outright and making a profit on them through renting them out was a much better deal. These eVu units WILL NOT BE RENTED BY THE ORIGINAL CUSTOMER OF THE UNITS. Where the profit will come from is through advertising on the units by say, drug companies, for units in a hospital.
The reason why EDig will not have to lay out any funds is due to the their ``FINANCIAL PARTNERS`` mentioned in the PR. It is not what most of you think.....EDig has, as part of a complete package, already engaged the services of a financial partner who WILL STAND THE FUNDING FOR ALL COSTS WHEN A COMPANY ORDERS eVu`s....Meaning company A wants to order 300 eVu units from EDig. EDig then puts company in touch with its financial partner who then contacts company A and goes through all the necessary credit checks and when approved comes back to EDig with an OK. EDig then ships the units to company A and is paid by its financial partner who is then the party who collects the payment from company A on a monthly basis of which the financial partner makes its profit and EDig also gets paid monthly. It will take only 4,000 units outstanding to make EDig profitable, any thing above that is the ``gravy`` This is NOT selling 4,000 units a year, it is HAVING 4,000 units out collecting rent a year.
The numbers of units already promised to DIFFERENT customers is 100. Not just one customer. I was told by WB and RB they are committed and WILL be ordering ``this quarter`` most likely by the middle to end of January with a lead time of 4 to 6 weeks for delivery.
So all of you ``doubting thomases`` out there may wish to hold off on your negativisms for just a month or two. From what I learned today you will either know of a success from EDig shortly or it will not be coming off at all..This is the first time a time line has been applied to EDig. WE WILL KNOW WITHIN TWO MONTHS.
I also asked if the company will be more open in its information dissemination. RP replied, ``WE STARTED TODAY``
I am tired writing....have more....whenever.