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Technology Stocks : Visual Data (VDAT)

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To: Gary105 who wrote (176)4/10/1999 9:55:00 AM
From: Fundamentls   of 405
 
These guys are certainly at the right place at the right time. Their own content has value.

One fact that I think is underappreciated is the implications of the fact that VDAT owns its content. This is not the standard model the marketing/advertising industry has followed for the past 50 years, but a very different one.

When professional talent (videographers, actors, voice talent) appear in advertising/marketing videos, the normal arrangement is one of a license - the talent licenses the end product (or their appearance in it) to the buyer for a specific set of purposes. If the buyer uses it for something else, additional royalties are due. VDAT has broken this mold; it buys the talent under "work made for hire" contracts, and it owns the result.

The implication of this is staggering, IMHO. It means that the vast majority of promotional material already filmed by advertisers and marketers, even if can be suitably digitized, cannot be delivered over the Internet without renegotiating royalties. On the other hand VDAT can do whatever it wants with its content, including repackaging and reusing it in other clips. This has been a major selling point for VDAT in the marketplace because they can absolve the customer of any infringement liability - something almost no one else will do.

Fund
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