Revolutionary Technology Provides DVD, On Demand, High Quality Content via Internet Utilizing Microsoft's Windows Media 9 Platform
NuTech Digital, Inc. (OTCBB:NTDL), an emerging growth originator, licensee and distributor of DVD home entertainment content, announced today the launch of its Digital Rights Management (DRM) technology for film and music delivery. The revolutionary technology provides a full spectrum of entertainment content in High Definition- and DVD-quality video and audio over the Internet with secure copyright protection. With this next-generation technology, NuTech has the ability to securely publish media on peer-to-peer networks such as Napster, Kazaa, newsgroups and chat rooms.
Currently, once consumers have downloaded the title from the Internet, they are redirected back to NuTech's web site, where they register and choose among different options, such as a 1-, 3- or 5-day rental or a purchase of the title. Once consumers register on www.nutechdvd.com, they can purchase new titles or renew the rental period without having to re-register. The Company's DRM technology prevents copying of the title.
The Company anticipates that, later this year, it will have the ability to deliver protected titles on DVD.
"It is news to no one that the entertainment industry is in major transformation as it seeks viable technology to deliver high resolution content on a secured basis over the Internet," stated Lee Kasper, NuTech's chairman, president and chief executive officer. "NuTech's technology will allow consumers to access NuTech's website where they can choose multiple purchasing options for movie or music delivery."
"We believe that our Digital Rights Management technology provides the ideal way to implement secure downloads, rent from a pre-delivered DVD, utilize Internet subscription models, and much more," stated Joe Giarmo, NuTech's vice president. "We believe that this technology will also substantially reduce pirating by implementing secure content activation. Content is electronically packaged and issued an encrypted license."
Mr. Kasper noted further, "In addition to providing content on the web, there is the inherent need to search for unlicensed pirated versions. We believe this is the practice engaged in by all major studios releasing movie and music content into cyberspace. Our software searches the Internet for illegally pirated and distributed movies and music. Once the product is identified, it can be tracked to the location of the violator. We believe that this feature will help deter the estimated $3.5 billion in content piracy, which has plagued the movie and music industries. When publishers feel that their content is secure, we believe that they will adopt this distribution method as a way of releasing their material."
Mr. Kasper concluded, "All our releases will be offered in both DVD and DRM formats. We anticipate an equal amount of sales and rentals as this technology becomes assimilated in the market. DVD retail sales grew to $11.6 billion in calendar 2003, an increase of 33% over last year. Consumers also spent $4.5 billion renting DVDs, up 55% from 2002. With instant access to our movies and music available on a 24-hour basis, this will add a completely new distribution method with little or no additional cost."
NuTech Digital has developed multiple business models for this application, both for licensed and shared licensed material. Full product management, including current total licenses issued for a given title or the complete library can be viewed in real time securely from any location.
Nutech Digital is converting its current library and, through its existing relationships in the movie and music industries, is actively seeking content for Internet rights for use with its technology. The Company also intends to pursue relationships with film and music rental companies to create a consumer account base.
