UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)
         [ X ]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934

         For the quarterly period ended September 30, 2000.

         [     ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                   SECURITIES EXCHANGE ACT OF 1934

         For the transition period from ________________to_______________

                         Commission file number: 0-27704

                           DIGITAL DATA NETWORKS, INC.
                  (Name of small business issuer in its charter)


Washington                                      91-1426372
(State or other jurisdiction of                 (IRS Employer
incorporation or organization)                  Identification No.)

3102 Maple Avenue, Suite 230
Dallas, Texas                                   75201
(Address of principal executive offices)        (Zip Code)

                                 (214) 969-7200
                (Registrant's telephone number, including area code)


Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15 (d) of the  Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes [ X ] No [ ]

As of November 10, 2000,  2,284,597  shares of Common Stock and 1,840,000 Common
Stock Purchase Warrants were outstanding.


<PAGE>



                                      INDEX
                                                                        Page
PART I.       FINANCIAL INFORMATION

    1.  Consolidated  Financial  Statements                               3

    2.  Management's  Discussion  and Analysis of Financial Condition     8
        and Results of Operations
    3.  Quantitative and Qualitative Disclosure about Market Risk        10

PART II.       OTHER INFORMATION

 Item 1.       Legal Proceedings                                          11

 Item 2.       Changes in Securities and Use of Proceeds                 (a)

 Item 3.       Defaults Upon Senior Securities                           (a)

 Item 4.       Submission of Matters to a Vote of Security Holders       (a)

 Item 5.       Other Information                                         (a)

 Item 6.       Exhibits and Reports on Form 8-K                          (a)

SIGNATURES                                                                12


----------------------------------------------------------------------------

(a)These items are  inapplicable or have a negative  response and have therefore
been omitted.

<PAGE>


                           DIGITAL DATA NETWORKS, INC.
                           CONSOLIDATED BALANCE SHEETS
                             (Dollars in thousands)
<TABLE>
<CAPTION>

                                                                 December 31,       September 30,
                                                                    1999                2000
                                                                    ----                ----
                                                                                     (unaudited)
Current assets
<S>                                                                <C>              <C>
  Cash and cash equivalents                                        $    372         $    215
  Trade accounts receivable, net of allowances
     for doubtful accounts of $8                                         56               41
  Prepaid expenses and other current assets                               3               18
  Receivables from officer and director, net of reserves                 81               88
                                                                    -------           ------
     Total current assets                                               512              362
Equipment, net                                                           28               34
Investments in equity securities (Note 3)                               150                2
Other assets                                                              2                2
                                                                    -------           ------

Total assets                                                       $    692         $    400
                                                                     ======         ======

Current liabilities
  Accounts payable                                                 $     49         $     29
  Accrued payroll and related                                            20               18
  Unearned income                                                        98               31
  Other accrued liabilities                                             151              151
                                                                    -------           ------
     Total current liabilities                                          318              229

Long-term debt and accrued interest                                     166              172
                                                                    -------           ------
     Total liabilities                                                  484              401
                                                                    -------           ------

Commitments and contingencies (Note 4)

Stockholders' equity
  Preferred stock, no par value, 1,000,000 shares authorized,
     No shares issued or outstanding                                      -                -
  Common stock, no par value, 10,000,000 shares authorized,
    2,314,597 shares issued and outstanding                          13,418           13,422
  Treasury stock, at cost, 30,000 shares                                 (7)              (7)
  Unrealized gain (loss) on equity securities available for
    sale(Note 3)                                                         90              (58)
  Accumulated deficit                                               (13,293)         (13,358)
                                                                   --------          -------
     Total stockholders' equity (deficit)                               208               (1)
                                                                     ------          -------

     Total liabilities and stockholders' equity                    $    692         $    400
                                                                     ======           ======
</TABLE>










           See accompanying notes to consolidated financial statements


<PAGE>


                           DIGITAL DATA NETWORKS, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
             (Dollars in Thousands, except per share information)

<TABLE>
<CAPTION>

                                                      Three Months                  Nine Months
                                                   Ended September 30,          Ended September 30,
                                                   -------------------          -------------------
                                                 1999           2000              1999           2000
                                               --------      ---------          -------        -------

<S>                                            <C>           <C>                <C>            <C>
   Revenues                                    $    183      $     126          $     435      $     412
                                                -------       --------           ---------      --------

   Expenses
     Direct operating costs                          34             28                154            102
     Salaries and related                            88             82                245            246
     Marketing, general and administrative           39             45                140            139
                                                -------       --------           --------       --------

       Total expenses                               161            155                539            487
                                                -------       --------           --------       --------

   Other Income (Expense)
     Interest expense                                (3)            (2)                (8)            (5)
     Interest income                                  1              4                 22             15
     Gain on merger termination settlement
       (Note 3)                                       -              -                 60              -
                                                -------       --------           --------       --------

       Total other income, net                       (2)             2                 74             10
                                                -------       --------           --------       --------

   Net income (loss)                           $     20      $     (27)         $     (30)     $     (65)
                                                =======       ========           ========       =========


   Net loss per share - basic and diluted      $ (0.01)      $    (0.01)        $  (0.01)      $    (0.03)
                                               ========       =========          ========       =========


    Weighted average shares outstanding         2,284,597     2,284,597          2,284,597      2,284,597
                                                =========     =========          ==========     =========
</TABLE>





















           See accompanying notes to consolidated financial statements
                                       4

<PAGE>




                           DIGITAL DATA NETWORKS, INC.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)
                           (Dollars in Thousands)
<TABLE>
<CAPTION>
                                                                        Nine Months Ended September 30,
                                                                            1999         2000
                                                                            ----         ----

CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                     <C>             <C>
Net Loss                                                                $   (30)        $  (65)
   Adjustments to reconcile net loss to net cash
   used in operating activities
     Depreciation and amortization                                           71             10
     Gain on merger termination settlement                                  (60)             -
     Decrease in accounts payable and accrued liabilities                   (11)           (22)
     Decrease in unearned income                                            (62)           (67)
     Other                                                                   23              3
                                                                         -------         ------
Net cash used in operating activities                                       (69)          (141)
                                                                         -------         ------

CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of Equipment                                                     -            (16)
   Payments received on notes receivable                                     27              -
   Proceeds from terminated merger settlement                               319              -
   Advances on notes receivable                                            (100)             -
                                                                          ------         ------
Net cash used in investing activities                                       246            (16)
                                                                          ------         ------

CASH FLOWS FROM FINANCING ACTIVITIES
   Debt principal payments                                                  (13)             -
                                                                          ------         ------
Net cash used in financing activities                                       (13)             -
                                                                          ------         ------

Net increase (decrease) in cash and cash equivalents                        164           (157)

CASH AND CASH EQUIVALENTS
   Beginning of Period                                                      151            372
                                                                          ------         ------

   End of Period                                                        $   315         $  215
                                                                                         ======
</TABLE>


          See accompanying notes to consolidated financial statements

                                        5

<PAGE>




                           DIGITAL DATA NETWORKS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1  Description of Business

Digital Data  Networks,  Inc.  ("the  Company" or DDN"),  a wireless,  passenger
communication and advertising  company,  is principally engaged in the operation
of a  "digital  information  network",  a network  of  computerized  electronics
message  displays that delivers  current news,  information  and  advertising to
riders  on-board  public  transit  vehicles.  The  digital  information  network
consists of a series of electronic  information displays utilizing digital radio
transmission technology.  The Company,  incorporated in 1988, operates a digital
information network in Dallas, Texas under the name The Transit Network.

The accompanying  unaudited consolidated financial statements have been prepared
in  accordance  with  generally  accepted  accounting   principles  for  interim
financial  information and with the  instructions  to Form 10-QSB.  Accordingly,
they do not include all of the information  and footnotes  required by generally
accepted  accounting  principles  for  complete  financial   statements.   These
consolidated  financial  statements  should  be read  in  conjunction  with  the
consolidated  financial  statements  and related notes  thereto  included in the
Company's 1999 Annual Report on Form 10-KSB.  In the opinion of management,  all
adjustments,  consisting only of normal recurring accruals, considered necessary
for a fair presentation have been included. Operating results for the nine-month
period ended  September 30, 2000 are not  necessarily  indicative of the results
that may be expected for the year.

Note 2  Financial  Condition,  Liquidity  and Going  Concern

While losses from operations have decreased significantly to $57,000 in 1999 and
$65,000 for the nine months ended  September  30, 2000,  the Company has not yet
generated  positive  cash flows from  operations.  The Company has  incurred net
losses  for  several  years,  including  approximately  $3  million  in 1997 and
$322,000 in 1998.  It was in 1998 that the  Company's  securities  were delisted
from the Nasdaq SmallCap Market as a result of non-compliance  with tangible net
worth  requirements.   These  conditions  raised  substantial  doubt  about  the
Company's ability to continue as a going concern.

Note 3 Terminated Merger Settlement

In February  1999,  the Company  entered into a Settlement  Agreement and Mutual
Release with Internet Sports Network,  Inc. ("ISN") terminating an Agreement and
Plan of Merger between the parties. In connection with the Settlement Agreement,
the Company  received  approximately  $320,000 cash and delivered  shares of ISN
common stock to ISN such that the Company  retained  ownership of 150,000 shares
of ISN common Stock.  The recorded value of the 475,000 ISN shares  delivered to
ISN  pursuant to the  Settlement  Agreement  of $190,000  and costs  incurred of
$69,000  relating  to  the  merger  were  removed  from  investments  in  equity
securities and other assets,  respectively.  Cash received exceeded the recorded
value of ISN related  assets,  exclusive of the remaining  recorded value of the
retained shares,  by $60,000 and is included in other income in the accompanying
consolidated statement of operations as gain on settlement.

The Company's investment in 150,000 shares of ISN common stock (the "ISN Stock",
since split one-for-six in 2000, now representing  25,000 post split shares) had
a cost of $60,000 when purchased in mid-1998,  which  approximated its estimated
fair value during  period  preceding  the  settlement.  ISN Stock is included in
investments in equity  securities at its estimated  fair value of  approximately
$2,000 at September 30, 2000, a decrease due to a decline in the market price of
ISN stock from  $150,000 at December 31,  1999.  The  unrealized  gain (loss) on
these  available-for-sale  securities  is  included as a separate  component  of
stockholders' equity.

                                       6

<PAGE>




                                                                      13
                           DIGITAL DATA NETWORKS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note 4  Commitments and Contingencies

In April 1998, the Company  settled  litigation  initiated in a lawsuit filed in
the Supreme Court of British Columbia, Canada against the Company in 1997 by the
former  stockholder  of hip  Communications  pertaining  to the  Company's  1996
acquisition of that company.  Pursuant to terms of the settlement agreement, the
Company  paid  approximately  $40,000 and received  30,000  shares of DDN common
stock. The estimated value of stock received has been recorded as Treasury stock
based upon  prevailing  market  prices  around the  settlement  agreement  date.
Settlement net costs are included in marketing, general and administrative costs
in the accompanying  statement of operations.  In 1999, an action in damages for
breach of settlement  agreement was  commenced  against the Company.  As part of
that  settlement  agreement,  the Company was required to transfer the "hip.com"
domain  name to the former  shareholder.  The Company  has not  transferred  the
domain  name and no longer has  registration  rights to such  domain  name.  The
Company  has  contacted  the party  which has such  registration  rights  and is
attempting to reacquire the hip.com  domain name.  The Company is also exploring
the  viability of  disputing  the current  ownership of the hip.com  domain name
under the Internet  Corporation  for Assigned  Names and Numbers  Uniform Domain
Name Dispute  Resolution  Policy. Due to the early stage of this litigation and,
as no amounts were named in the action,  the Company is unable to determine  the
consequences, monetary or otherwise, which might result from the outcome of this
uncertainty.

In 1997, the Company entered into a letter of intent with Advanced Communication
and Information Services ("ACIS") to acquire all of the capital stock of ACIS in
exchange for DDN common  shares.  Pursuant to the letter of intent,  the Company
forwarded ACIS approximately $1.05 million cash under terms of promissory notes.
Subsequently,  ACIS issued to the Company  1,000,000 shares of ACIS common stock
and withdrew from the letter of intent.  ACIS  defaulted on repayment of amounts
owed, and in 1998, the Company received a judgment from the King County Superior
Court in the State of Washington  against ACIS in the principal  amount of $1.35
million.  Collection  efforts with respect to this judgment have not resulted in
any recovery,  nonetheless,  the Company continues to monitor various collection
actions.  There can be no assurance  that the Company will recover any,  all, or
part of this  judgment.  The entire  amount of the  receivable  was  written off
during 1997.

The  Company  has a contract  to  provide  services  with the Dallas  Area Rapid
Transit authority ("DART") that includes a provision for a 4% royalty payment to
DART on certain gross  advertising  receipts.  The agreement  expires in October
2001 and DART is required to rebid the contract.  There can be no assurance that
the Company will be the successful bidder for the new contract.

In 1999,  the  Company was named as a defendant  in a lawsuit  brought  before a
United  States  Bankruptcy  Court  by  the  Trustee  for  the  estate  of  Dally
Advertising,  Inc., one of the Company's  former  customers,  seeking to recover
certain  payments  made  by the  customer  within  90 days of  filing  its  1997
bankruptcy  petition.  The  Trustee  and the  Company  subsequently  agreed to a
settlement  in the amount of $2,500,  and in June 2000 the Court  approved  this
settlement.

The Company is subject to various legal proceedings and claims that arise in the
ordinary  course  of  business.   Company  management  currently  believes  that
resolution of other various legal  proceedings  will not have a material adverse
impact on the Company's financial position, results of operations or cash flows.



                                       7
<PAGE>





                           DIGITAL DATA NETWORKS, INC.

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations

                              Safe Harbor Statement

Forward-looking statements,  within the meaning of Section 21E of the Securities
and Exchange Act of 1934, are made throughout this  Management's  Discussion and
Analysis of Financial Condition and Results of Operations. For this purpose, any
statements  contained  herein that are not statements of historical  fact may be
deemed to be  forward-looking  statements.  Without limiting the foregoing,  the
words "believes",  "anticipates",  "plans",  "expects",  "estimates" and similar
expressions  are intended to identify  forward-looking  statements.  There are a
number of  important  factors  that could  cause the  results of the  Company to
differ  materially from those indicated herein.  These factors include,  but are
not limited to, those set forth in Item 6 entitled  Management's  Discussion and
Analysis of Financial  Condition and Results of Operations in the Company's Form
10-KSB for the year ended December 31, 1999.

                              --------------------

         The following  discussion  and analysis  should be read in  conjunction
with the Company's interim consolidated  financial statements included elsewhere
in this  Quarterly  Report on Form  10-QSB and with the  Company's  consolidated
annual financial statements and management's discussion and analysis included in
the Company's Annual Report on Form 10-KSB.

Results of Operations

         Revenues decreased from $183,000 to $126,000 for the three month period
ended  September 30, 2000,  due primarily to increased  time spent  developing a
market for a recently-introduced  product,  which resulted in less marketing and
sales  efforts for  existing  products.  The decline in revenues  for this three
month  period more than offset  revenue  increases  during the first half of the
year,  resulting in a revenue  decrease of 5% from  $435,000 to $412,000 for the
nine months ended September 30, 2000.

         Total  expenses  decreased  from  $539,000 to $487,000  during the nine
months ended  September 30, 2000,  as compared to the prior year period.  Direct
costs   decreased   from  $154,000  to  $102,000   primarily  due  to  decreased
depreciation  expense  in 2000  as  more  equipment  became  fully  depreciated.
Salaries  and  related  increased  slightly  from  $245,000 to  $246,000,  while
marketing,  general and administrative  expenses remained relatively  unchanged,
decreasing  from $140,000 to $139,000  compared to the prior year period.  Total
expenses of $155,000  for the three  months ended  September  30, 2000  declined
slightly from $161,000 during the comparative prior year period.

<PAGE>




                           DIGITAL DATA NETWORKS, INC.

Results of Operations (continued)

         Other income,  net decreased  significantly from $74,000 to $10,000 for
the nine months ended September 30, 2000, primarily the result of a $60,000 gain
on termination of merger settlement in the prior year period,  described in Note
3 in the financial statements.

         The  Company  continues  to record a valuation  allowance  for the full
amount of deferred  income  taxes,  which would  otherwise  be recorded  for tax
benefits  relating to operating  losses,  as realization of such deferred assets
cannot be determined to be more likely than not.

Financial Condition, Liquidity and Capital Resources

         The  Company is subject to various  legal  proceedings  and claims that
arise in the ordinary course of business.  Company management currently believes
that resolution of such legal maters will not have a material  adverse impact on
the Company's  financial  position,  results of  operations  or cash flows.  See
"Legal Proceedings."

         Net  cash  used by  operating  activities  for the  nine  months  ended
September 30, 2000 was $141,000,  a $72,000  increase as compared to the $69,000
used during the comparative prior year period. Most of the year-to-date increase
occurred  during the three months ended  September 30, 2000 resulting  primarily
from the  increase  in net loss.  Cash used by  financing  included  $16,000 for
capital  expenditures  during the three months ended  September 30, 2000.  There
were no sources or uses of cash relating to financing activities during 2000, as
the Company has not disposed of  investments  and continues to minimize  capital
expenditures.

         The Company is currently  re-installing its information  system on DART
buses that are periodically  being added to DART's fleet to replace older buses.
In addition,  the Company will soon be incurring other capital costs relating to
the installation of its Marquee Headliner  advertising  product.  The Company is
funding the  re-installation  of its information  system and the installation of
its Marquee Headliner  product from existing cash and new product revenues.  The
Company's  contract  with  DART is due to  expire  in  October  2001 and DART is
required to rebid the contract.  There can be no assurance that the Company will
be the successful bidder for the new contract.

         At September 30, 2000, the Company's principal current assets consisted
primarily  of  $215,000  of cash,  most of which  was  invested  in  short-term,
interest-bearing  investments with banks and other financial  institutions,  and
$41,000 of net accounts receivable. The Company's investment in ISN common stock
is included in investments  in equity  securities at its estimated fair value of
$2,000 at September  30,  2000.  The  Company's  total  liabilities  of $401,000
consisted  of $47,000 in  accounts  payable  and  accrued  payroll  and  related
liabilities,  $31,000 of

                                       9
<PAGE>

unearned income, $151,000 in accrued liabilities of discontinued operations, and
$172,000 of long-term debt.

                           DIGITAL DATA NETWORKS, INC.

Financial Condition, Liquidity and Capital Resources (continued)

         The  Company  has  incurred  net losses for  several  years,  including
approximately  $3 million in 1997 and $322,000 in 1998.  It was in 1998 that the
Company's  securities  were delisted from the Nasdaq SmallCap Market as a result
of non-compliance with tangible net worth requirements.  These conditions raised
substantial doubt about the Company's ability to continue as a going concern.

         The Company has taken actions to reduce negative cash flows,  including
disposing of portions of the business, such as the sale of the Internet services
segment,  reducing general and administrative  expenses,  and minimizing capital
expenditures.  While losses from  operations  have  decreased  significantly  to
$57,000 in 1999 and $65,000 for the nine months ended  September  30, 2000,  the
Company has not yet generated  positive cash flows from operations.  The Company
has pursued  merger  possibilities  and  continues  to do so. The ability of the
Company  to  generate  positive  cash flows  from  operations  and net income is
dependent,  among other things, on market conditions,  the  yet-to-be-determined
receptiveness by the advertising  community to the Company's recently introduced
advertising  products,  the recovery of recorded assets,  cost control,  and the
Company's ability to raise capital under acceptable terms. While the Company has
had some  successes in these  endeavors  in the past,  there can be no assurance
that its efforts will be successful in the future. These financial statements do
not  include  any  adjustments  that  might  result  from the  outcome  of these
uncertainties.

Item 3 Quantitative and Qualitative Disclosure about Market Risk

         The Company  believes  that it does not have any  material  exposure to
interest or commodity risks. The Company does not own any derivative instruments
and does not engage in any hedging transactions.


                                       10
<PAGE>


PART II.   OTHER INFORMATION

Item 1.   Legal Proceedings

         In 1997,  the Company  entered  into a letter of intent  with  Advanced
Communication  and Information  Services  ("ACIS") to acquire all of the capital
stock of ACIS in  exchange  for DDN  common  shares.  Pursuant  to the letter of
intent,  the Company  forwarded ACIS  $1,048,000  cash under terms of promissory
notes for working capital pending  completion of the acquisition.  Subsequently,
ACIS  withdrew  from the letter of intent and  defaulted on repayment of amounts
owed.  In April  1998,  the  Company  received a judgment  from the King  County
Superior Court in the State of Washington against ACIS, ordering ACIS to pay the
Company the amount of the loan, plus interest, plus a $300,000 cancellation fee.
The Company  continues to monitor various  collection  actions.  There can be no
assurance that the Company will be successful in recovering  any, all or part of
this judgment.

         An action  in  damages  for  breach of  settlement  agreement  has been
commenced  against  the  Company in  connection  with the April 1998  settlement
agreement  with the former  shareholder of hip  Communications.  As part of that
settlement agreement,  the Company was required to transfer the "hip.com" domain
name to the former shareholder.  The Company has not transferred the domain name
and no longer has  registration  rights to such  domain  name.  The  Company has
contacted  the party which has such  registration  rights and is  attempting  to
reacquire the hip.com  domain name.  The Company is also exploring the viability
of disputing the current ownership of the hip.com domain name under the Internet
Corporation   for  Assigned  Names  and  Numbers  Uniform  Domain  Name  Dispute
Resolution  Policy. Due to the early stage of this litigation and, as no amounts
were named in the action,  the Company is unable to determine the  consequences,
monetary or otherwise, which might result from the outcome of this uncertainty.

         In 1999,  the  Company was named as a  defendant  in a lawsuit  brought
before a United States  Bankruptcy  Court by the Trustee for the estate of Dally
Advertising,  Inc., one of the Company's  former  customers,  seeking to recover
certain  payments  made  by the  customer  within  90 days of  filing  its  1997
bankruptcy  petition.  The  Trustee  and the  Company  subsequently  agreed to a
settlement  in the amount of $2,500,  and in June 2000 the Court  approved  this
settlement.

         The  Company is subject to various  legal  proceedings  and claims that
arise in the ordinary course of business.  Company management currently believes
that resolution of such legal matters will not have a material adverse impact on
the Company's financial position, results of operations or cash flows.


Item 6.   Exhibits and Reports on Form 8-K

         None.


                                       11
<PAGE>



                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.



                                       Digital Data Networks, Inc.
                                       (Registrant)


Date:     November 14, 2000            By:    /s/   Donald B. Scott, Jr.
                                       ------------------------------
                                       Donald B. Scott, Jr., President



Date:     November 14, 2000            By:    /s/   Richard J. Boeglin
                                       ----------------------------
                                       Richard J. Boeglin
                                       Vice President, Finance & Operations




                                       12
<PAGE>