Groundfloor opportunity in Destiny Media (DSNY)

A $40M market cap company about to take off..

After a recent sell-off because of lack of news, the company is ready to roll, launching it’s long awaited and eagerly anticipated beta version of it’s revolutionary Clipstream G2 product. Potential clients have already expressed an interest. For an in-depth look, see our DSNY forum (or see our earlier introductionary article).

Destiny Media (DSNY) is a $40m microcap company that is debt free and already profitable and has one legacy product (Play MPE) that is a near monopoly. The product has recently been revamped and is now ready to expand into new geographical locations and, more importantly, address wholly new categories of clients.

This in itself is a good opportunity, but most of the upside lies in a second product, Clipstream G2, which enables media streams without streaming servers, content distribution companies or media players, playing right in the browser, basically any browser on any device.

After a long wait, the product is now ready and in beta, enabling Destiny to start raking in customers, who will surely come (they have already knocked on Destiny’s door, per the CC last Friday) as the advantages are rather large and numerous. From the recent 10K:

A Clipstream® powered website does not require that its visitors download and install player software. Clipstream® just plays. Other solutions require intrusive codecs and new versions of their player in the background.

As Clipstream® is playerless, management estimates that at least 10% more visitors see the rich media content

Clipstream® playback takes minimal CPU and memory resources, so the viewer’s computer is free for other tasks. This means that many Clipstream® objects can appear on the same page. Other solutions often restrict to one piece of content per page.

The Clipstream® solution is less intrusive and, as a result, safer for users. Alternative solutions control a user’s device and can be used by malicious sites to install malware. Clipstream® content will never crash or compromise your machine.

Clipstream® content is uploaded to any brand of web server and just works. Alternative solutions require that you purchase, install and configure streaming server systems, running on dedicated hardware.

Clipstream® plays on any JavaScript and HTML 5 enabled device, so playback is not restricted to computers. This cross platform approach means the same object will work for any browser on any brand of computer or device at any bitrate. (An autodetect procedure automatically delivers the highest possible stream quality).

Because there is no player, Clipstream® encoded media never becomes obsolete and never has to be re- encoded. Content encoded in Clipstream® ten years ago still plays today. Other solutions launch new player software without backwards compatibility.

Clipstream® media will automatically cache because it is an ordinary web component, just like a graphic or a block of text. This means that Clipstream will save up to 90% on bandwidth cost (over 90% for ads), while providing much more reliable playback This standards based approach means that there is no limit to simultaneous streams.

Clipstream® components can be uploaded to the cloud for third party hosting. Player solutions require complicated server farms to handle more than a few thousand simultaneous visitors.

Clipstream® objects can be embedded into databases for long terms storage and easy context sensitive retrieval. Every aspect of the Clipstream® engine can be accessed by web authoring tools to create a customized look and feel

Dozens of parameters provide functionality not available from any other streaming solution. For example, Clipstream® provides the only technology available to link every pixel or group of pixels in a banner to a different audio stream. This technology can be used for audio navigation of a website or to provide ads that do not require the visitor to leave the host site to listen to an ad.

We think the shares in Destiny Media offer really compelling value at these levels.