DIVX earn conf notes...taken on the fly
in 2009 over 11 million per month unique visitors
launch newest version in coming weeks
Studios: Warner, Sony, Param, Liongate, StarzMedia
Most consumers playback PC to device
Clear going forward--will be streamed to devices--DivxTV over 70 content channels,
LG--expected to be in shipping later this year. Strong interest from others.
complete end to end solution..
Q&A
very pleased with overall traction in emerging product category..dvd, bluray, mobile all great traction..Sony BluRay relationship--internationally, BluRay and digital television..
All the top OEMs signed up , top 9 OEM blue Rays signed up..15% of android models released to date..
biggest driver of outperformance was...combination both tech licensing and little uptick on google toolbar...emerging is up..all areas really..hitting on all cylinders across the board..
visibility..getting stronger on diversification than before...
digital TV penetration--is contributing meaningfully , Blue ray over 25% penetration now...
DivxTV..milestones?...announcements of additional OEM and content partners...first area is LG...one of the things that makes it very unique is we can add additional content almost overnight, ...consumers can navigate through it quickly...tremendous interest from our major OEM ...we have deep relatships with them...why such strong interest? The platform is really easy to embed in mass market consumer elect...leverages relationships...we understand embedding into chips like nobody else..easy to add content channels..prob most important is the platform offers a compelling experience for consumers..it is as easy as using the remote for a TV..demo..everyone gets excited when they use it...
very unique position in the space..we would hope over time to bring partners like VUDU onto our platform..
q .. are you going to be in heavy investment mode or ...well funded..operating leverage....are investing in Divx TV (of course)..we will spend over $1 million per qtr ahead of revenue..havne't set a model for profitability...we are hiring..over 20 positions across company...we are protecting the balance sheet..will see continued growth in top line..really setting ourselves up for future growth..
when do you expect revs from LG DIVXTV to start to flow...launch 2nd half 2010...some rev flowing after ..then stronger in 2011 as ramp with both LG and other OEMs..
are we past point where no opp. to get 2010 revs from anyone else or opp for 2010 design wins..relative to divxTV unlikely to see in 2010 ... but we been investing in areas now starting to harvest...
VUDU has some proprietary codecs...how do you see DIVX working with a company like VUDU? looking to present a platform .. what DIVX provides is a platform that is format agnostic...not tied into legacy DIVX..solving a problem of solving multiple content, multiple OEM...everybody can play on our platform...
We would hope that over time VUDU would see DIVX TV as a way to reach ...in a way that is scalable...
Roxio CinemaNow for content..main one, or others? ... online dist 6 partners..are seeing customers ..CinemaNow one of the larger sites and is obviously doing well...in addition ..bundling content with devices..Paramount, Phillips.., digital copies with DVDs...more physical model complimenting download..indirect impact drives demand, negotiating leverage continues to increase..large component is about monetizing indirecting for CE licensing...
what you are seeing now is that it (our investments) are starting to pay off. |
