What ever happened to DVDs? Digital Media is on the Rise.


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The online movie market is predicted to reach $4.4 billion by the year 2017,
with one of the major growth factors being the increase in internet downloads. This is in stark contrast to the DVD rental industry, which showed rapid decline in 2012, as technology and online rentals replace instore video content rentals. The download-to-own segment of the digital retail market represents the majority of annual online movie revenues, and analysts predict consumers are moving toward a speedy transition to online movie rentals.

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What ever happened to DVDs? Digital Media is on the Rise.

  1. 1. What Ever Happened to DVDs?The information contained within these marketing materials is strictly for illustrative purposes, and the figures herein are not guaranteed for accuracy. Theinformation used in preparing these materials are from sources we believe to be accurate, or reasonably estimated, however Duvon Corporation has notmade any investigation into the accuracy of these sources. Duvon Corporation does not intend for these marketing materials to be a substitute forappropriate due diligence investigations. Duvon Corporation, or its agents, and/or affiliates make(s) no further warranties, express or implied, for any reasonor purpose to any party in possession of these marketing materials. Duvon Corporation - All Rights Reserved 2013
  2. 2. 1The Days of DVD Rentals are OverThe online movie market is predicted to reach $4.4 billion by the year 2017,with one of the major growth factors being the increase in internet “We expect DVDdownloads.1 This is in stark contrast to the DVD rental industry, which subscribers toshowed rapid decline in 2012, as technology and online rentals replace in- decline steadily forstore video content rentals.2 The download-to-own segment of the digital every quarter,retail market represents the majority of annual online movie revenues, and forever.”analysts predict consumers are moving toward a speedy transition to online Reed Hastingsmovie rentals. CEO, NetflixIn fact, consumers now spend more time watching professionally producedinternet video than viewing DVDs/Blu-Ray Discs, video on demand or live premium cable. Itseems that even though consumers feel that the issues often experienced with streaming createan inferior viewing experience, 48 percent of consumers have actually increased their streamingactivity. Because of its convenience and cost-effectiveness, researchers predict that internetvideo streaming will rise significantly in the future. 31 Global Industry Analysts, Inc., April 20122 IBISWorld.com, December 20123 Cisco Internet Business Solutions Group, 2012
  3. 3. 2Media Management Brings Movies Home InstantlyDuvon Corporation is poised to answer the growing consumer demand for digital contentconsumption and for the comfort and convenience provided by online video content rental andpurchase. Additionally, Duvons Media Management System eliminates the problems thatconsumers associate with streaming. Duvon’s proprietary system allows users to quickly andeasily rent video content from a provider without requiring the user to stream the content.Based on a subscription agreement, the user can select and download a predetermined numberof movies to a small media device kept at their home or office using a web and/or mobile app,and watch them at their leisure. The Media Management System is a complete entertainmentmanager that gives users a centralized hub for all of their digital media, including music, video,photos, e-books and more. Through the Media Management System linked to a contentprovider, the user can select content to be added to their digital queue for viewing anytime,anywhere.The Media Management System allows content providers to offer subscribers all of theadvantages of renting video content in a controlled digital environment. Subscribers can go totheir virtual video store, add selections to their watch list and, based on their subscriptionagreement, receive delivery of a certain number of media files to their Media ManagementDevice. When the user has completed their viewing session,they can remove the files from the device, triggering the next “For all of the apparentitem on the watch list to move to the queue. convenience of renting a movie via the Web, there are a surprisingBandwidth Issues Frustrate Consumers number of drawbacks. For example, when you rent a digital version, you often have only 24Although there are clear advantages to online media hours to finish watching it, whichdistribution, there are also limitations to overcome. In the US,broadband connectivity has skyrocketed from 20% a few years makes no sense. Do theseago, to 78% in 2011.4 Bandwidth speed must be high to view companies really expect us to rentdata in real time, however. When media providers limit users the same movie again tomorrowto streaming the media at the time of rental directly from the night if we can’t finish it tonight? Inprovider’s site, it can result in buffering delays, other viewing the DVD days, a Blockbuster rentalinterruptions and limited play features. was three days. Why should online rentals be any different?”The Media Management System addresses these problems by David Pogueallowing users to accommodate their home bandwidth needs Scientific American™by scheduling media delivery for convenient times that won’t August 20124 Global Industry Analysts, Inc., April 2012
  4. 4. 3interfere with their internet use. Additionally, once media is in the queue on the Media Device,viewing quality is greatly improved because it is viewed over the local network, eliminatingbuffering or other interruption, while convenient play features enhance the experience.Choice and Mobility RuleAnother advantage of the Media Management System over single-movie streaming is that thedevice is designed to host multiple titles on the device at any given time. This method of"queuing" the media eliminates some of the biggest problems with the streaming of videocontent. Since the media is hosted on the Media Device, users dont need to worry aboutbandwidth limitations while other people are using the internet, poor video quality due tobuffering, or any of the problems with fast-forward,pause, rewind and restart. Queuing also eliminates the “Streaming movies offersissues of stopping a movie from a streaming service and instant gratification: nowishing to restart it at a later time. waiting, no driving – plusIn addition to allowing users to choose multiple movies great portability: you canto queue up on their device, the Media Management watch on gadgets too smallSystem also allows them to access their rental or for a DVD drive, likepurchased content from anywhere via internet phones, tablets and superconnection. It also allows content to be viewed thin laptops.”simultaneously on multiple devices and different movies David Pogueto be viewed at the same time – keeping the wholefamily entertained. The Media Manager can be accessed Scientific American™and managed remotely from anywhere, giving the user August 2012complete freedom and convenience.Research shows that consumers are willing to pay for secure, enhanced video delivery. They aremuch more likely to pay for the ability to watch content when and where they want, without thetechnical glitches associated with streaming over the internet. Those studied also indicated awillingness to pay for the latest releases and advertising-free viewing.5 The Media ManagementSystem provides the delivery method necessary for media providers to reach consumers withthe services they value most.5 Cisco Internet Business Solutions Group, April 2012
  5. 5. 4Security for Provider and ConsumerClearly, another vital consideration when talking about media content distribution is security.Duvon’s patent-pending technology ensures that all of the video rental content is controlledremotely by the content provider, and the queue is loaded and configured per the rentalagreement in place between the provider and the user. The provider maintains ownership ofthe media, and all access rights to the content. The media is encrypted, secured and stored in asequestered section of the device. If a user chooses to purchase the rental content from themedia provider, it is immediately transferred from the secured storage to a secondary storagecomponent within the device, allowing the user to manage and access the purchased content attheir leisure. In addition, the device contains secure, private storage for all of the user’s ownedmedia files. This allows the user to truly create one centralized media library, accessible fromany of their devices.ConclusionDuvon’s Media Management System meets the consumer demand for instant gratification whenit comes to entertainment. Our technology will allow content providers to deliver media quicklyand easily to consumers, provide a superior viewing experience, and ensure security for mediathroughout the process.There is no doubt that digital media management will become a vital part of every household inthe near future, and Duvon is ready to provide a superior product and experience for mediaproviders and consumers alike.For more information, please visit www.duvon.com or contact us at:Duvon Corporation5538 S. Eastern AvenueLas Vegas, NV 89119702.948.9770info@duvon.com