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DVD Growth in Brazil, Advances in Streaming Video and High Definition Formats Create Digital Media Market Opportunities
Industry Participants Internap, Netflix, Infosmart and USA Video Interactive Positioned for Continued Market Penetration Across Hardware, Content, and Storage Segments
POINT ROBERTS, WA and DELTA, BC -- (MARKET WIRE) -- April 17, 2007 --www.DigitalMediaStocks.com,
an investor and industry news portal for the digital media sector, reports
on key growth areas within the digital media industry in DVD, high
definition and streaming video. Infosmart Group, Inc. (OTCBB : IFSG ), a
global DVDR manufacturer, is working to capitalize on the rapid growth
Brazil is seeing as the DVD format is only now being adopted in this
developing region. In addition, advancements in streaming video and the
availability of high quality downloads has opened the doors for many
players such as Internap (NASDAQ : INAP ), a global provider of integrated
content delivery systems and USA Video Interactive Corp. (OTCBB : USVO ),
provider of video-on-demand and digital watermarking anti-piracy
technology.
On the content side, positioned to benefit from continued demand for DVD
movies and the eventual shift to high definition, is online movie delivery
company Netflix.
While the format battle continues to dominate high definition circles, many
companies have found significant market opportunity for DVD and recordable
DVDs in developing markets such as Brazil.
According to Justin Davis, North American representative for Infosmart
Group (OTCBB : IFSG ), "Right now in Brazil you have 185 million people, 60
million TVs, but only 4 million DVD players. This mirrors exactly what we
saw in the U.S. 5-7 years ago when most people were utilizing VHS and began
transitioning from VHS into DVD. And now in North America basically
everyone is using DVDs and most likely owns one or more DVD players. Brazil
is at this transition stage right now and with this market only now
becoming a viable option, it creates tremendous growth potential. Infosmart
Group is positioned to take advantage of this opportunity through its newly
opened facility called Infosmart Discobras."
With the foothold that the existing standard continues to hold, Swasey sees
DVDs continuing to dominate. Netflix's Steve Swasey, Director, Corporate
Communications, states, "We are a distributor and we are going to continue
to send out the formats that movie studios continue to publish in and make
that available to our customers. It is however a DVD world and will
continue to be for five to ten years at least for several reasons. DVDs are
ubiquitous and with the advent of the HD DVD and Blu-ray, it is still the
most popular way of getting entertainment today."
Thanks to high profile sites such as YouTube, streaming video has become a
high growth and viable channel for content distribution that many feel
could change the face of consumer entertainment through the availability of
high quality downloads. The Internet has been a key contributor to the
growing level of digital content now available. However, with this surge
has come an escalated amount of video and movie piracy, reaching global
levels exceeding $18 billion.
Patrick Gregston, Sales Manager with USA Video Interactive Corp (OTCBB : USVO ), explains, "What makes the digital era different is the speed and
quality of what anybody can do, so the threats are multiple, and within the
means of millions and with the surge of companies now distributing and
selling video content over the Internet, piracy issues have become a
greater concern than ever before."
With the ability to digitally watermark content as it is being distributed
over the Internet using the Company's SmartMarking technology
(MediaEscort™), USVO is positioned to take advantage of this fast paced
delivery channel as they secure the rights of the content producers and
distributors.
Internap Network Services Corporation (NASDAQ : INAP ), a provider of choice
for the world's elite businesses on the Internet, through their recent
acquisition of VitalStream, has extended their reach into the rich media
content streaming delivery business and is turning the growing demand for
online video content into a high growth business from an advertising
perspective.
As described by Andrew Albrecht, Vice President, Corporate Development for
Internap, "Our acquisition of VitalStream allows us to put real time ads
into streaming video, targeting the ads using specific geographic and
demographic information and providing reporting back to the advertisers on
the number of ads that were targeted and delivered. Internap is looking to
continue to develop this technology to take advantage of the growing demand
for rich digital media content providing a means for monetizing digital
media content through seamless, streaming and targeted advertising."
In addition to the continued strength of the DVD market and the rise in
popularity of streaming video, it is difficult to deny the opportunities
associated with the inevitable shift to a high definition viewing
experience. Evidence that consumers are beginning to move towards high
definition is seen in the rising sales of HDTVs.
In addition to the continued strength of the DVD market and the rise in
popularity of streaming video, it is difficult to deny the opportunities
associated with the inevitable shift to a high definition viewing
experience. Evidence that consumers are beginning to move towards high
definition is seen in the surging sales of HDTVs which are equipping many
of today's consumers with technology to take advantage of high definition
media, with expectations that this pattern will continue to grow at
escalating rates.
According to Adam Thomas, Media Research Manager with Informa Telecoms &
Media and author of: 'HDTV: A Global Analysis,' "We are forecasting pretty
strong growth for high definition TV, with more than 150 million HDTV homes
worldwide expected by the end of 2011 -- which is more than three times the
number at present. The US has 28 million HD homes at the moment and we are
expecting that to rise to 63 million over the next five years."
To Read the Full Report: www.digitalmediastocks.com/Articles/041707a.asp
Digital Media Portal Sponsors:
Infosmart Group, Inc. (OTCBB : IFSG ) For More Info:
www.digitalmediastocks.com/CO/IFSG/ or visit www.infosmart.com.hk
USA Video Interactive Corp. (OTCBB : USVO ) For More Info:
http://www.digitalmediastocks.com/CO/USVO/ or visit: www.usvo.com
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