Destiny Media Technologies, Inc. (OTCBB: DSNY) ("Destiny"), headquartered in Vancouver, BC, Canada, was founded in 1991 as a video game developer. Since that time, we have become a leading provider of secure digital content distribution solutions including audio and video streaming solutions and secure file distribution to customers around the globe.

 

Business segments

Products From our proprietary technologies we have developed two broad product lines:

MPE® enables the secure download of audio or video to a user's computer. Content can be locked to a recipient computer marked with a digital watermark that identifies copies. Our largest and fasted growing product in the MPE® line is Play MPE®.

 

 

 

Clipstream™ enables users to stream internet audio and video directly inside an email or web page. As the system is based on the Java applet, the content will play directly within the email or web page rather than in a separate window and will instantly play for 98% of the internet audience without the download of additional application software. We have developed a suite of four distinct software products that incorporate our Clipstream™ technology and are marketed under our Clipstream™ brand name: Clipstream™ Audio, Clipstream™ Video, Clipstream™ Live, and Clipstream™ Audiomail. For a more detailed discussion of our products please visit our solutions discussion.

 

 

Short to Medium Term Outlook

After having established a network of usage for our Play MPE® solution, revenue has grown by an average of 17% per quarter (87% annually) over the last 3 years. Our revenue growth has resulted in positive operating income for the first time since going public in 1999. In the short to medium term, management will be focused on continuing this growth in Play MPE® usage, to cement Play MPE® as the global standard for secure digital distribution and to be synonymous with access to pre-release music.

We have structured the Play MPE® system such that existing users encourage additional growth and accelerated usage can be realized without significant added resources.

Play MPE® revenue growth will be realized through expanding usage with existing labels under contract, increased growth in various music genres, increasing the use of video distribution, pricing, and continuing our global expansion into new territories. The expansion in usage will be realized through increased awareness at both radio and record labels, and reducing radio station reliance on physical distribution. Management is committed to growing income in the immediate term and the growth in MPE® revenue will be facilitated with expenditures on marketing, travel and support that consider this goal.

Though this market opportunity is much larger than would be expected at first glance, we view Play MPE™ as a stepping stone to complementary product offerings and a base of recognition and trust from which to grow.

Clipstream® sales are stable with our success realized in sales to market research companies where the instant play, the high level of access to internet users, and security aspects of Clipstream® are imperative.

 

The Technology Behind Our Solutions

Our technologies:

• Digital Locking technology: "Digital Media Distribution Method and System" (US 20020146122, WIPO 01/65796) issued on Dec. 16, 2008.
• Digital Trace: "Methods for Watermarking Media Data" (US 20080098022) was published in April 2008 and is currently pending review.
• Compression: Our proprietary lossless compression technique enables High Definition quality downloads in a fraction of the time it takes to download raw data.