Almost every major content player and distribution platform

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TwoTrickPony PowerPuncher #20779
Almost every major content player and distribution platform has analyzed the potential within the UHD ecosystem to some degree. After all, it's a new way to drive incremental revenue up and down the line. We all did the same with 3D, and yep, I'm old enough to remember what we went through with HD as well.

HD was unique - in addition to superior (versus SD) picture, the form factor for televisions also completely changed. We moved from 600 pound bulky tubes to sleek flat screens. Everyone wanted one, even if they could get nothing more than a SD signal. But as history notes, it was a significant time period before HD become a daily reality, primarily due to the pipeline and broadcast infrastructure - massive overhaul in switchers, satellites, bandwidth, cameras, you name it.

3D was dead in the water from the beginning, primarily due to glasses, and secondarily, the need for specialized equipment to shoot, post and display. Although still very viable in theaters (in some countries more than others), the home 3D market just didn't resonate with consumers. A novel could be written on mistakes made up and down with 3D, but suffice it to say...

UHD on the other hand has a distinct advantage - it's quite simply a "better" version of HD in every way. Everyone (I mean everyone) is shooting on UHD cameras - it's better capture coming in the camera, higher bitrates, more data, better color - the raw product simply gives a better starting point for whatever is done after. There are an ever-growing number of film franchises and television series shot in UHD - in addition to the advantage above (in that it creates a superior HD product from a UHD source) - nobody wants to bet against UHD and they are all future-proofing.

But as you move through to distribution, broadcasters are bitching because once again, there will need to be significant infrastructure investments made to make UHD broadcast a reality. At the same time, the world has changed significantly since the advent of HD. Everything from compression, to digital distribution, devices - everything that wasn't present to move the HD transition along is present now. So we don't just have to rely on the brick and mortar broadcasters to kick-start a move to UHD like we did back with HD.

From a potential standpoint, as UHD goes, so goes Ultraflix. They are certainly positioned to gain from the overall growth of the ecosystem (rising tide/boats analogy). And unlike 3D, it's fairly evident UHD isn't a flash in the pan.

Every camera maker (both pro and consumer) is making a UHD camera (Sony, RED, Alexa, etc.). Every post production hardware or software manufacturer designs a system for post (edit, color correction, etc.). Every TV manufacturer has a UHD set of some kind in market. Almost every computer company makes either a fully baked UHD computer or a UHD monitor. Devices (tablets, phones, STB's Blu Ray) are already out from some, with the others to follow. And lastly, every distributor is moving into 4K to some degree (YouTube, Vimeo, Netflix, Amazon, Directv, Comcast, Dish, Sony, Fox, etc.). So at least at this early stage in the UHD game, you already kind of have all the boxes checked through each link in the chain.

I think the most important mindset NTEK can have is to keep UF platform agnostic, with the goal of getting the app on each and every device - regardless of make/model - made to consume UHD content. And do it quickly to build consumer loyalty. Often times, first in wins, so to speak.

I certainly can't pretend to know much related to all the areas NTEK might be involved in, nor the specifics of various divisions, but building scale for the UF platform - making it the default choice for consumers - is I presume a primary focus.

I'd like to see UF become an interesting "partner" for a large player in the near future - one that comes from whatever part of the ecosystem makes sense - by becoming an unavoidable proposition, and one that is large enough in scale within the UHD universe that they can't be ignored.

Nanotech Entertainment Inc. (NTEK) Stock Research Links

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