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Technology Stocks : Internap Network Services Corporation

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To: Jibacoa who wrote (902)4/20/2007 11:49:14 AM
From: Jibacoa  Read Replies (1) of 1011
 
On an article by Ann-Marie Fleming, of DigitalMediaStocks.com
she mentions Internap among the companies involved in Streaming Video to keep an eye on.

Streaming Video Moves Mainstream:

Thanks to high profile sites such as YouTube, streaming video has become a high growth and viable channel for content distribution that many feel could change the face of consumer entertainment through the availability of high quality downloads. Netflix’s Steve Swasey describes, “I think the greatest threat to the high definition format is the downloading, instant watching and electronic delivery. We have our own electronic content called Instant Watching that allows for streaming video over your PC that we feel has a lot of potential moving forward to satisfy the growing demand for downloadable movie titles.”

The Internet has been a key contributor to the growing level of digital content now available, however with this surge has come an escalated amount of video and movie piracy, reaching global levels exceeding $18 billion.

According to USA Video’s Patrick Gregston, “The challenge for the industry is how to adapt to the fact that a much higher quality experience is now going to be in homes, and that the various means of delivery are all dependent on putting very high quality digital copies into the hands of millions of customers. What makes the digital era different is the speed and quality of what anybody can do, so the threats are multiple, and within the means of millions and with the surge of companies now distributing and selling video content over the Internet, piracy issues have become a greater concern than ever before.”

According to Standard & Poor's Equity Research, “In 2007, we expect potentially significant technology advances (with key milestones) related to the implementation of effective digital fingerprinting technology, potentially helping the likes of Newco, MySpace, and YouTube to prevent unauthorized use of copyrighted material.”

With the ability to digitally watermark content as it is being distributed over the Internet using the Company’s SmartMarking technology (MediaEscort™), USVO is positioned to take advantage of this fast paced delivery channel as they secure the rights of the content producers and distributors.

Andrew Albrecht, Vice President Corporate Development for Internap Network Services Corporation (NASDAQ: INAP), a provider of choice for the world’s elite businesses on the Internet, believes, “We are going to see video gaining the same acceptance as digital music has today by people being familiar with and trusting downloadable rich media content.”

Internap, through their recent acquisition of VitalStream has extended their reach into the rich media content streaming delivery business and is turning the growing demand for online video content into a high growth business from an advertising perspective.

As described by Albrecht, “Our acquisition of VitalStream allows us to put real time ads into streaming video, targeting the ads using specific geographic and demographic information and providing reporting back to the advertisers on the number of ads that were targeted and delivered.

Internap is looking to continue to develop this technology to take advantage of the growing demand for rich digital media content providing a means for monetizing digital media content through seamless, streaming and targeted advertising.”


That's an advantage that INAP has over AKAM at present.

Bernard
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