The VeriSign Intelligent CDN is the first solution to combine the power of VeriSign's broadly deployed Kontiki peer-to-peer (P2P) technology with the capabilities of a traditional CDN, delivering faster download speeds while maintaining high standards for reliability and security. This solution fundamentally changes the economics of the broadband delivery of DVD-quality video and provides a significant technical advantage over existing CDNs.
"One of the greatest challenges media and entertainment companies face is how to meet the growing demand for more Internet-based content in an economically viable and secure manner," said Todd Johnson, vice president for broadband content services, VeriSign. "By leveraging the patented Kontiki peer-to-peer technology and the latest streaming technology, the VeriSign Intelligent CDN offers an end-to-end solution which enables our customers to choose the right viewer experience for each specific piece of content. For short previews and user generated content it is likely to be streamed, for long form content, it is likely to be delivered with P2P."
VeriSign Intelligent CDN enables media companies, like AxiomTV, to safely distribute their copyrighted content with full digital rights management, at a lower cost and higher quality. With a legacy in Internet security, VeriSign is leveraging its scalable, global infrastructure to offer a range of streaming, download and play options in addition to the Kontiki P2P technology.
"We are a groundbreaker as the first Internet movie service focused on delivering family conscious entertainment as it pertains to online video," said Daniel Cobb, president of AxiomTV. "As families bring their children online, we need to ensure that the movie content is not only high quality, and most of all, legal and secure. We chose VeriSign because they are the trust mark of the Internet. The fact that they have the highest quality video delivery and a global infrastructure is a bonus."
VeriSign Intelligent CDN not only provides increased flexibility from a technology standpoint, it offers customers an economic benefit of approximately 40% when choosing a P2P delivery option.
"As global demand for online video increases, content owners and providers are looking for the most cost efficient and secure way to make their content available to viewers, on-demand," said analyst Allen Weiner, managing vice president, Gartner. "Growth in this market will be realized by those able to capitalize on the benefits of legitimate peer-to-peer distribution while providing a seamless customer experience for high quality video over broadband."
Online purchases of media reached $19 billion in 2005 and will increase to $67 billion by 2010 according to PricewaterhouseCoopers' Global Entertainment and Media Outlook 2006-2010. Except for MP3 music, most of this content is still delivered by mail. Now, analysts suggest that Internet video services are on the brink of becoming the next mainstream phenomenon in the United States. According to InStat, the annual value of consumer video delivered over Internet Protocol networks will grow to $4.6 billion by 2008, an increase from only $1.38 billion in 2005 (Research and Markets).
The VeriSign Kontiki peer-to-peer technology is already deployed by some of the world's largest broadcast media companies and enterprises. Current customers include AOL, BBC, Channel 4 and SkyTV.
Axiom.TV is the world's first family friendly and parental controlled Internet TV channel. Focusing on families, Axiom.TV is developing a website that makes the movie download process user-friendly for all ages and for all computer skill-levels, taking the next step to blur the line between your PC, your TV and your DVD player. In addition, Axiom.TV will be the first movie download technology that will protect children from inappropriate content including pornography, violence and vulgarity through a military-grade web-blocking technology called "Mother." The pre-launch dummy-website, axiomtv.com, gives a visual representation and overview of how Axiom.TV will work for its beta launch on January 8, 2007. The consumer launch is planned for February 1, 2007.
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Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause VeriSign's actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, the uncertainty of future revenue and profitability and potential fluctuations in quarterly operating results due to such factors as the inability of VeriSign to successfully develop and market new products and services and customer acceptance of any new products or services, including VeriSign Intelligent Content Delivery Network; the possibility that this service may not result in additional customers, profits or revenues; and increased competition and pricing pressures. More information about potential factors that could affect the company's business and financial results is included in VeriSign's filings with the Securities and Exchange Commission, including in the company's Annual Report on Form 10-K for the year ended December 31, 2005 and quarterly reports on Form 10-Q. VeriSign undertakes no obligation to update any of the forward-looking statements after the date of this press release.