Download Investor Facts - Destiny Media Technologies

Destiny
Media
Technologies
Investor Facts
11 1 0- 88 5 W es t G e or g i a S tr e e t | V a nc o u v er , BC
( 60 4) 6 0 9- 77 3 6 | w ww. ds n y. c om
CORPORATE OVERVIEW
Destiny Media Technologies (TSX:DSY; OTC:DSNY)
provides services that enable content owners to securely
display and distribute their audio and video content
digitally through the Internet. The Company's two major
services are Clipstream® and Play MPE®.
Clipstream® consists of an extremely robust high
performance cloud based hosting solution for serving
video and a brand new video format which plays the same
video file without plug-ins across most phones, tablets,
browser formats and devices. This software based
approach offers much better security and flexibility. Unlike
competing solutions that roll out new features over years,
Clipstream's® Javascript approach offers new features
instantaneously.
Play MPE® provides a standardized, cost-effective
method to securely distribute pre-release music to radio
stations and other music industry professionals, before it
is ready for sale. Play MPE® has become a key point in
the music industry’s value chain.
Destiny Media Technologies
INVESTMENT MERITS
(TSX:DSY OTC:DSNY)
Potentially disruptive technology in a rapidly growing
market
• Clipstream technology has the potential to change the
way video is delivered over the Internet to devices, and
in the process, disrupting a $5 billion+ industry.
• Internet video is growing at 40+% per year, and already
over half of all data transferred on the Internet is video.
• Clipstream is expected to begin contributing materially
Founded
1991
Head Office
Vancouver, Canada
Recent Price (02/09/16)
52-Week Range
Fiscal Year End
$0.19
$0.15 - $0.76
August
to new revenue in FY 2016.
Music industry standardization and intellectual
property provide strong competitive “moat”
• Agreements with all of the major labels and many
independents, and a global pricing agreement, Play
MPE® is increasingly becoming the industry standard.
• Clear technology leadership with an extremely robust
global patent portfolio. (http://dsny.com/intellectualproperty)
Shares Outstanding
Avg. Trading Volume
55.0M
34,000
Market Capitalization
Cash & Equivalents
Long-Term Debt
Annual Revenue
10.5M
$640K
$10K
$3.3M
“Capital light” business model with significant
earnings leverage
Contact Info
• No debt, positive cashflow from MPE® funded
Clipstream® R&D. Clipstream is transitioning into a
market ready product and is also expected to generated
high margin cashflow.
• “Capital light” business model is expected to produce
>70% incremental profit margin
Steve Vestergaard, CEO
Destiny Media
800-833-7846 ext 222
Destiny Media Technologies’ Primary Service Offerings
www.clipstream.com
www.plaympe.com
Clipstream®, our massively parallel global hosting solution
and proprietary Javascript streaming media playback
technology is an end to end solution with enhanced
security, higher reach and more features than any other
system. A new API lets third party sites integrate video
hosting as a feature in their own offering. A video ad
solution lets advertisers provide a more consistent user
experience while providing in page ads to devices like the
iPhone, which isn't possible with other formats. Videos will
"just play" in browsers with no need for player plug-ins.
Our Play MPE® system, which enables record labels to
send locked and watermarked content through the
Internet, is in use by many record labels including all three
majors globally.
Value Proposition
• Plays on any modern web browser
• No player software to configure or install
• Never goes obsolete and is future proof
• More cost efficient delivery
• Security and tracking capability
•
•
•
•
•
•
•
•
•
•
•
End Market Potential and Growth
Multiple large end markets for video content producers
including: Internet advertising, market research, web
developers, site licenses, Internet radio, live streaming,
hardware licensing, integration
Transmission of video data over the Internet is projected
to grow at an annual rate of 66% over the next five years
Intellectual Property
Seven patents pending and granted in the US and
dozens internationally protect the innovative concept of
playing video with Javascript. The company has
identified many infringers and will be pursuing
enforcement action in the year.
Additional claims from prior patents pending
•
•
•
•
•
Value Proposition
Fraction of cost of physical distribution
Industry is rapidly standardizing on DSNY’s technology
Proprietary digital watermark catches digital pirates
Instant distribution with real time reporting
Available in 27 languages with bank level security and
reliability
End Market Potential and Growth
Commercial end-market opportunity only 10%
penetrated.
Opportunities to expand into consumer markets and
work with movie studios (e.g.,securely send daily files
from remote filming locations back for editing)
Potential to license locking and watermarking patents
Intellectual Property
Key watermark and digital locking patents are cited in
multiple other patents as prior art
Key Developments
October 2014 – Granted European patent number for
watermarking technology
December 2015 - Two year renewal with guaranteed
minimum revenue with UMG, largest client
January 2016 - Successful migration of five server
facilities to the cloud, better performance, cost
savings
Key Developments
• October 2015 - Successful fall release and update on
coming winter release
• October 2015 - Six patent grants
• November 2015 - API available for third party integration
Safe Harbor Forward-Looking Statements
All statements made in this document, other than statements of historical fact, are forward-looking statements within the meaning of Section 21E of the Securities Exchange
Act. You should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, the
stage of product and market development, expected future developments and other factors that we believe are appropriate under the circumstances. These forward-looking
statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the businesses of the Company and the industries and markets in
which the Company will operate. Actual outcomes and results may differ materially from what is expressed or implied by the forward-looking statements. Projections and
financial illustrations are based on factors and assumptions subject to significant uncertainty and should not be relied on as guidance as to future results and are subject to
significant risk. The Company disclaims any intent or obligation to update these or any forward-looking statements, except as otherwise specifically stated by it.