Ann: Company Update, page-148

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21/12/16

18:29

Post #: 21496328
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Originally posted by taincrow ↑

Once either Divan or TV2U have an installed CENC compliant DRM in place then they can under their partnership model, presumably IMO share it across new clients.

Yes it could then be adopted in PGASCOM as a compliant DRM will be a key piece of overall OTT architecture and so part of any white-labelled solution.

To me this would be the obvious area of collaboration as Divan did go out into the market and get a DRM consultancy done in 2016, and now have the architectural model and technical architectural design done to go ahead and finance the install of such a DRM.

TV2U would IMO benefit from this if done as they could then utilise a OTT Labs/Divan derived OTT platform with its B2B client base.

Content supply is such a headache as it costs large sums for content titles and the Minimum Guarantees to studios around each title's consumption, and the DRM industry uses not only expensive hardware but playout devices that utilise licence per instances.

This means that as you put increasing numbers through the DRM solution you need to purchase or have purchased volumetric based licences at say 50c per instance. This adds up and is usually passed on in the pricing model somewhat but it can bite operators who get their sums wrong.

Operators such as TV2U then have to provision for such costs whilst running the service and commercially sort out who in the end pays for that(either the consumer in their subscription, the PGASCOM's or TV2U).

These costs get harder to pass on in third world countries where subscriptions need to be cheap to get user adoption, and this is one reason among many why you see non-DRM content flying around in third world countries.

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Thanks for detailed review, do you think tv2u will finalise the DRM in near future? What gap would you think for the Pgas deal?

TV2 Price at posting: 1.1¢ Sentiment: None Disclosure: Held
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Ann: Company Update, page-148

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