DRM Plus Multiplatform Plus Interoperable Equal Revenue

SCOTTSDALE, Ariz., March 11, 2009 - Multiplatform and Interoperable DRM will represent over 8% WW of pay TV subscribers participating in a multiplatform offers. Yet in many respects currently it still remains a goal rather than current practice. However time and the natural progression of these services on multiplatform's will start to solidify into an ecosystem capable of supporting and justifying a multifaceted but cohesive offer. For the immediate future smaller scale multiplatform initiatives will remain fragmented with third parties providing the platform, DRM or both.

In 2008, over 80million CE devices had Ethernet connectivity By 2012MultiMedia Intelligence estimates nearly 8%of worldwide pay-TV subscribers will be participating in amultiplatformoffer The success of these initiatives is dependent upon the coordination and cooperation of each memberwithin the value chain - e.g. Apple is a key missing component to all Interoperable plans thus far.

The research, DRM + Interoperable + Multiplatform = Revenue, analyzes and forecasts the multiplatform market and details the status of the interoperable DRM. Forecasts are provided on an annual basis from 2007 through 2012. The Study addresses the issues that kept this technology from full deployment and address's some of the cost issues that are critical moving forward.

Multiplatform and Interoperable DRMare in their experimental or nascent stages - interoperable DRM in particular. Amongst the various interoperable DRM solutions onlyMarlin has products on the market while others like DECE are still shrouded in secrecy. Multiplatform services and hence the related DRM is likewise in its early stages, and for the time being remains more experimental than core strategic initiatives.

These markets are still largely fractionated, with DRM provided by several parties, however over time these DRM platforms will consolidate as service providers scale up multiplatform operations. Amongst the various television categories IPTV holds the most potential followed by digital cable. Since IPTV is purely a digital medium transmitted over data lines often a return channel is readily available. Cable still includes many analog subscribers who are less inclined to have broadband services hence a lower number of potential subscribers for multiplatform services. Satellite, due to the nature of its transmission technology, is often a unidirectional signal. Integrating a backchannel usually necessitates a partnership with a local broadband provider or embracing new wireless technologies like WiMAX; all of which push out the timeline for significant subscriber pools where multiplatform services are applicable.

In terms of revenue we anticipate a relatively small market size with top line growth eclipsing USD 85 million by 2012. In large part this figure remains small due to the requirements necessary to qualify a subscriber as a multiplatform user and hence RGU for DRMproviders.

Interoperable DRM is on the horizon, but its level of success is still largely unforeseeable. Without a unified platform of choice, let alone an industry wide accepted goal/path towards interoperability, the solution could very well perpetuate the problems that exist in today's market.