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1363 commoncentsinvestor Jan 11 2013
1388 sevted Jan 15
Our revenues are primarily in United States dollars and Euros while our operating expenses are primarily in Canadian dollars. Thus, operating expenses and the results of operations are impacted to the extent they are not hedged by the rise and fall of the relative values of Canadian dollar to these currencies. During the three months ended November 30, 2012, net fluctuations in the value of the Canadian dollar, Australian dollar and Euro relative to the US dollar compared to the three months ended November 30, 2011 resulted in a net decrease of net income of approximately $50,000.
Revenue from the Play MPE® system represents over 95% of our total revenues. Quarterly total revenue for the three months ended November 30, 2012 declined by approximately 6% over the same period in the prior year to $1,017,713 (November 30, 2011 - $1,087,459). This decrease was largely attributable to unfavorable foreign exchange rate fluctuations between the US dollar and the Euro.
Approximately 46% of our Play MPE® revenue is denominated in Euros for the three months ended November 30, 2012. Play MPE® revenue from Europe for the three months ended November 30, 2012 reached $468,717 (November 30, 2011 - $504,061) representing a decrease of 7%. European revenue is currently concentrated in the United Kingdom and the Scandinavian countries. Approximately 50% of Play MPE® revenue is denominated in US Dollars and 4% of Play MPE® revenue is denominated in Australia Dollars for the three months ended November 30, 2012.
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1417 Vangorilla Jan 17 2013
The G2 version that a NFLX would use, would sit on THEIR server(s), not DSNY's. That is the encoder version that is expected to be released by Spring.
The first version of G2 to be released (any day) enables an advertiser to create and publish a video through DSNY's site and distribute through DSNY's network.
DSNY has already proven their reliability to the record industry with music distribution. Their server network could handle videos for the advertising industry.
1426 Vangorilla
I like that analogy.
DSNY is making sure there are no bugs before they launch. The idea that big companies won't entrust their streaming videos to a small company is not accurate. If a company that spends over $1b in transcoding can find a solution that eliminates that cost, they will surely test it before adoption....but you sure want to own DSNY before that would happen.
I envision a big player wanting to own this technology just to block competitors or make money from their competition.
With regards to your cable modem analogy...the company that had that IP made a pretty penny licensing the technology to the modem manufacturers.
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The $67 billion music industry http://www.grabstats.com/statmain.aspx?StatID=67 trusts Destiny's servers to deliver their new music. Our little company is already serving some of the biggest companies in the world for mission critical functions.
And why can't Amazon just become a G2 customer and license it to their users?
Clipstream's competition is Flash, not Amazon.
1436 Vangorilla
I think there will be several pricing models.
Some customers will want DSNY to transcode and store the videos on their server, while the biggies will want complete control (transcoding and storing).
I am sure they are factoring in the recurring savings a customer gets when they use G2.
As far as someone coming out with a better product..maybe down the road but you have to appreciate what DSNY is accomplishing with G2 to realize what a difficult task that would be.
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1441 Vangorilla Jan 18 2013
The only statement you need to read.
"We believe management is in discussions with potential large content creators that could lead to multi-million dollar annual licensing revenue in the next six months."
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1463 Vangorilla
DSNY Investors when you get your proxy statement, I recommend reading pages 17-26 (including the cover letter).
Start reading at Item 1. Business and read until Clipstream Advantages.
I have to admit I am a geek and actually read this stuff. I was amazed at how well they explain what Clipstream G2 is and why it is so disruptive.
This really does make for good reading while we wait for the online streaming video industry to be transformed.
1477 Vangorilla Jan 30 2013
When the US Dept of Homeland Security warned that Java still poses risks after security fix, it just drastically increased the value of a working G2 product. Oh yeah and Oracle finally fessed up that there were massive security flaws too.
The delayed launch of G2 timed with this latest warning could be a blessing for DSNY investors. It could also be a great way to market this disruptive technology.
We're ready Steve.
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1483 DoughDiligence Feb 1 2013
'What am i missing' Lots of stuff.
H.264 will soon be obsoleted by H.265.
All the Amazon formats require royalty payments to the H.264 license owner if they distribute over 100,000 H.264 videos in a year. The payment is 20 cents per video transmission (I think), up to 6.5 million royalty payments per year. This may obligate the video trans-coding service users to start calculating their royalty payments. MP4 also requires royalty payments.
The Clipstream G2 format will be royalty free.
The Amazon format still requires multiple formats because Mozilla and other browser companies refuse to pay the royalty through running the videos natively - so the browsers run those video formats with a player component.
1484 sevted
To Our Shareholders, Customers, Partners and Employees:
I am pleased to report on our progress for Destiny Media Technologies, Inc. for fiscal 2012 and first quarter 2013. Our annual general meeting will be held at the Metropolitan Hotel on February 28th, 2013 at 10 AM and we look forward to meeting those of you that are able to attend. For those that cannot attend, please consider signing up as a member of our shareholder list to receive our latest updates by email at http://dsny.com/join-ir. Our latest news releases are available online at http://dsny.com/latest-news.
Revenues for the year were $3,983,789. Play MPE® continues to show expanded use in Europe and amongst US independent record labels showing revenue growth of 14% (to $1,617,015) and 20% (to $761,147) respectively. These gains were masked by a decline in the Euro relative to the US dollar, declines in Australia and the absence of a non-recurring revenue amount in 2011. Modest gains were seen in Canada and New Zealand. Clipstream® legacy revenue was $164,213 compared to $176,205 in 2011. Operating expenses grew by 2%, with a 21% increase in R&D spending offset by 23% decline in G&A and a 15% decline in sales and marketing costs. Income from operations was $719,678.
First quarter numbers are expected to be available online on January 14th at http://dsny.com/fin-reports.
The company has two business units, Clipstream® and Play MPE®, which facilitate playerless streaming and secure digital distribution.
Destiny has been developing streaming solutions since 1995, when it launched the world’s first internet
radio software. In 1999, we launched Clipstream® playerless streaming video using the Java capability available in computer based web browsers. This legacy solution is still being marketed to the market research industry for video questionnaires and is responsible for 5% of our revenue. In 2013, we plan to phase this technology out and replace it with a very exciting and disruptive technology we are calling Clipstream® G2.
Clipstream® G2 will play video on all modern web browsers whether they are on computers, tablets, smart phones or internet enabled TV's. Viewers will not need to install or configure player software and publishers will no longer require separate streaming servers or multiple video formats. With reduced bandwidth and infrastructure, publishers can reduce the need for content delivery networks. Because a single format plays everywhere, there is no need for transcoding. Content delivery is currently a $3 billion annual spend and, absent our technology, transcoding was expected to reach total costs of $1.6 billion by next year.
Without Clipstream® G2, there is no single solution for video delivery across a large number of devices. Adobe is phasing out non-desktop support for Flash and already the iPad and Android will not support it. The proposed alternatives, such as H.264 and WebM are not widely supported in the public.
Recent stats show that 84% of browsers will play Clipstream and that is expected to improve rapidly as IE 10 launches and IE 8 is phased out.
http://caniuse.com/#feat=canvas
Only 62% can play H.264, the most widely adopted alternative format.
http://caniuse.com/#feat=mpeg4
H.264 is based around a consortium of patents which require the payment of patent royalties. It is being phased out and replaced by H.265. H.265 will not be backwards compatible and is not supported by any browsers today. Google has announced that it will phase out support for H.264. The second most widely distributed format, WebM, is only at 54%.http://caniuse.com/#feat=webm
During the year, the company filed seven patents claiming priority to August 2011 around the next generation Clipstream® G2 engine. The solution is in final development and prototype versions of the technology are available for testing at http://dsny.com/g2/showcase.php. We expect to release commercially in Q3.
The Play MPE® system, which currently generates 95% of our revenue is actively used by the four major record labels (UMG, Sony, EMI and Warner) and over one thousand independent labels to securely deliver their prelease music, music videos, album graphics, marketing materials and meta data to trusted recipients, such as radio stations. We charge the labels a transaction fee and currently provide the system for free to recipients. The system is completely automated and therefore high
margin. Label staff digitize and upload content and provide data entry and are able to share assets with sister companies around the world.
Recipients are able to access music through a choice of a number of applications. They can reach content through our integration with third party systems such as the BBC or Mediabase, or through custom standalone Windows, Mac and Direct to Web applications developed by Destiny. Dedicated versions for the iPhone, Android, Blackberry, iPad and Tablet are expected to begin rolling out this quarter.
Real time statistics for Play MPE® are available at http://dsny.com/mpe%20stats.
We feel we have the foundations in place to become a much bigger company in the years ahead and we appreciate the support from our stakeholders. I welcome questions and constructive criticism at steve@dsny.com or (604) 609-7736 x222 and look forward to hearing from you.
Sincerely,
/s/ Steve Vestergaard
Chief Executive Officer
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1486 Vangorilla
My understanding of Amazon's service is that it is just a transcoding service.
Elastic Transcoder, a service aimed at helping users convert their videos into different formats, with a number of presets available for mobile devices, web browsers and the like.
You will still need to convert and you will still need players.
I still think people dont quite get what Clipstream G2 will do.
(With G2) A video is made in ONE format that will play on ANY device. That video will play ON the Net, not THRU the Net. No players or plug-ins are required. If your device can pull up a website, it can play a G2 video (that includes email).
In my opinion, Clipstream G2 eliminates the need for Amazon's Elastic Transcoder. There are plenty of other transcoding companies out there..maybe Amazon highlighting it just makes people more aware of the many video formats.
1489 sons1
Everything you need to know is explained below, please read it will help you understand the potential of G2!!
Clipstream® Generation 2
During the year, the company released a working prototype of a new disruptive second generation streaming video technology. The Company is continuing development with a goal of launching this product commercially in fiscal 2013. We launched our first streaming product in 1995 and the first generation of Clipstream® in 1999 and have come to understand the needs of our customers and this solution is expected to address all of those needs. One of the most challenging aspects of serving video is that with streaming servers, each viewer typically gets their own dedicated stream, which uses up hardware and bandwidth resources. Most large providers outsource this hosting to content delivery networks.
An Accustream 2012 report estimates current annual spending on content delivery networks at $3 billion. Another challenge is that there is no standard format for streaming video on the net, so customers are required to convert the videos (transcode) and store multiple copies of each video. A 2007 report by Frost and Sullivan estimated that the annual transcoding spend would be $1.6 billion by 2014. A third concern expressed by publishers is that for player based solutions, it is common for up to 15% of the customers to not be able to see the video, because their player plug-ins are configured incorrectly or are not the latest version.
Finally, competing solutions, such as HTML 5 video, support only unencrypted video playback, making it difficult for content
owners to secure and monetize their content.
Our new solution addresses all four of these concerns directly, using internet standards:
1. While other solutions can stream content using HTTP progressive download, it is not the typical way of providing video, especially with content that is likely to receive a lot of views. By contrast to a streaming server solution, such as Flash, Clipstream® streams can be reused. Recipient ISP's automatically make local copies of popular content (caching)
to save themselves the cost of connecting to the host server for future accesses to that content. Because Clipstream is part of the web page, the streams of popular content are also cached at the local ISP, producing dramatic bandwidth savings at the host ISP. It has been estimated that using Clipstream reduces bandwidth costs by more than 90%. This
allows the host to reach up to one hundred times as many viewers with the same infrastructure, while providing a better experience to the audience, because the content is “closer” in terms of latency. Because of this efficiency, publishers can either host themselves on their own corporate web server or reduce their reliance on content delivery networks.
2. We will provide encoder software which will convert video from any standard input format into our proprietary format. Once converted, the publisher can upload the video to any brand of web server and it will play back directly on web browsers on a wide variety of devices and computers. Our solution eliminates the need for transcoding completely.
3. We provide the publisher with text based player code, which they can cut and paste into their web page. This code directs the browser on how to decode and play back the content. It handles flow control, aspect ratios, bit rates, image quality and frame rate, etc. Because this code is written in the HTML 5 format, it will play on almost any browser that
supports the standard properly, achieving a nearly 100% play rate on desktops, laptops, smart phones, tablets, e-book readers and internet enabled TV's. Viewers are not required to download or configure player plug-ins.
4. Our solution will allow publishers to lock video content to only play from authorized source URL’s, it will enable watermarking of the content and it will be possible to encrypt streams to only play on authorized computers.
The solution is protected by seven pending US patents, drawing on a priority date of August 2011. The Company intends to file analogous patents in all major jurisdictions.
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1491 sons1 Feb 1 2013
Clipstream® Advantages
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! 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.
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! As Clipstream® is playerless, management estimates that at least 10% more visitors see the rich media content
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! 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).
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! 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.
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! 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.
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! 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.
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! 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
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! 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.
1493 sons1
Clipstream®
Historically, the most common way to get streaming video was through player based solutions, such as Flash, Windows Media Player and Quicktime. Video would be typically hosted on one or more streaming servers, which would be referred to indirectly by the web page on the web server. When the web page loaded, the streaming server that matched the browser and device of the viewer would be used to embed the video into the page.
This had the notable disadvantage that users were required to maintain and update player plug-in software. This could be difficult for novice users and users that didn't have administrative rights and sometimes upgrading the plug-in wasn't possible without also upgrading the operating system. It was common for up to 15% of users to be unable to see the video. For applications such as advertising, those lower play rates meant lower revenues for the site owner running the ads.
The most dominant format in the last few years has been Flash from Adobe, but earlier this year, Adobe announced that they would no longer be supporting Flash for smart phones. In addition, prominent devices, such as the iPhone and iPad do not support Flash.
Web pages are in the hypertext markup language format (HTML) and the latest standard, supported by browsers released in the last few years is HTML 5. It supports a new <video> tag which enables browsers to natively play video without a player plug-in. The issue is that different browsers support different formats. Site owners still have to encode their video in multiple formats to reach all computers and devices (transcoding). They would list the formats that are available in the video tag and the browser would choose one to play back.
As an example, video uploaded to Youtube would be transcoded into H.264, Web M and Flash and three versions of the video in these three separate formats would need to be stored. An HTML 5 compliant browser would choose one of those formats to play back.
By comparison, Clipstream® uses features only available in HTML 5 compliant browsers, but not the <video> tag. Flash and H.264 are the most widely supported formats, but H.264 is going to be phased out when H.265 launches in 2013. Both H.264 and H.265 are protected by over one hundred patents and use of these formats requires payment of patent fees to
the consortium (http://www.mpegla.com). Other open source formats, such as Web M and Ogg Theora are likely to become more popular over time.
All of these formats are likely to be used extensively and competitively, but they all have the disadvantage that they are not cross platform. We are not aware of another solution that doesn't require a streaming server or streaming player plug-in, but that plays on all HTML 5 compliant browsers on desktops, laptops, smart phones, tablets and Internet enabled TV's.
We believe that if granted, our seven patents will protect the techniques that we are using, so that no other competitor could offer a similar solution.
The other major concern with HTML 5 video is that it doesn't support digital rights management. The streaming formats that browsers would natively access are unencrypted formats and there is no easy way to stop users from downloading the streaming files that the <video> tag points to.
By contrast, Clipstream® content can be locked to only play from authorized Meta Data Fingerprinting, photos, video, PDF’s, Data (ISRC codes, intro times, beats per minute, etc.) exported into radio automation system/software. Exclusive integration with RCS Sound Software – the world’s leading radio scheduling software provider. Artist name, title, label, compatible with only one automation system. Radio must manually input “meta data” requiring more labor and leading to errors causing errors in royalty reporting. Formats CD, WAV, MP2, MP3, AAC, WMA MP3, WMA, WAV CD Players Windows, Mac, PC, Browser, Android, iPhone, Blackberry, iPad, tablet Typically browser based only CD URL's and it can be watermarked. Because it can be hosted on the corporate web server rather than third party content delivery networks, the authentication system and the streaming can lie on the same server. Streams can be provided that will only play on the specified, authorized viewer computer that had just been previously authenticated.
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1496 sons1
1498 sons1
As an example, video uploaded to Youtube would be transcoded into H.264, Web M and Flash and three versions of the video in these three separate formats would need to be stored. An HTML 5 compliant browser would choose one of those formats to play back.
By comparison, Clipstream® uses features only available in HTML 5 compliant browsers, but not the <video> tag. Flash and H.264 are the most widely supported formats, but H.264 is going to be phased out when H.265 launches in 2013. Both H.264 and H.265 are protected by over one hundred patents and use of these formats requires payment of patent fees to
the consortium (http://www.mpegla.com). Other open source formats, such as Web M and Ogg Theora are likely to become more popular over time.
All of these formats are likely to be used extensively and competitively, but they all have the disadvantage that they are not cross platform. We are not aware of another solution that doesn't require a streaming server or streaming player plug-in, but that plays on all HTML 5 compliant browsers on desktops, laptops, smart phones, tablets and Internet enabled TV's.
We believe that if granted, our seven patents will protect the techniques that we are using, so that no other competitor could offer a similar solution.
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1512 Vangorilla Feb 4 2013
The Insider Buys:
DIR Kumagai Yoshitaro bought 33,729 at .729
CEO VESTERGAARD STEVE bought 35,655 at .729
CFO Vandenberg Fred bought 28,798 at .729
98,182 shares at .729 equals $71,574 worth of stock.
Mgmt buys stock in the open market and we are expecting Clipstream G2 to launch any day.
1513 DoughDiligence
Have the Directors been accumulating without notification?
http://www.nasdaq.com/symbol/dsny/insider-trades#.URA-7GdZP1Y
I see the share count owned by Mr. Kumagai is 625,079 this year. Last year in February 2012, he only owned 441,350.
Same deal for Mr. Vandenberg. This year he owns 995,708. Last year, 511,417.
Maybe the employee stock buys of the company are not shown for Mr. Vandenberg. Do the Directors like Mr. Kumagai receive 150,000+ shares for their work as a director?
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