"There's restrictions in some cases with what can happen to the content. They're downloading this media. And then what they can do with this media depends on the restrictions that the content providers have placed on us."
Cdigix has partnered with Creative Labs to allow songs to be ported onto its Zen Micro MP3 players. Students can also purchase music to burn onto CDs. It's similar to services from Napster or Real Networks…
"With that subscription, the student can download that music to their hard drive, but it's what's called a tethered download. That means it's locked onto their computer and it's effectively a rental model in a lot of ways."
Cdigix has competition in selling its services to colleges….from Ruckus Network and others. Both Cdigix and Ruckus are providing streaming movie and video services as well. Bloomberg Boot Camp, I'm Fred Fishkin.