DD Must read ULTRAFLIX AND ROKU Mr..Aaron Taylor - From Roku
Taylor comes to NanoTech from BrightSign, the commercial division of Roku , where as Vice President of Sales, he helped build the company from a start-up to a $40M/year business and the market leader in digital signage media players.
http://www.businesswire.com/news/home/2013121...hP8Y_-FPct
CNET presented an article examining 4K content and identified several main providers and ways to receive 4K content. What I find interesting is that among the very few streaming choices available here (Netflix $26B cap (NASDAQ:NFLX), Amazon $172B cap (NASDAQ:AMZN), Direct TV), one name is placed right alongside the major players but is not well known. This is NanoTech's flagship product known as UltraFlix. NanoTech has a number of revenue generating businesses but from what I can tell, UltraFlix is clearly their key product with the highest ceiling.
UltraFlix brags to have the most 4K content available but a lot of the content may not be exciting enough to differentiate it from the competition. Also as CNET notes there just isn't much content anywhere. However, I am finding that this seems to be changing in a big way. Here is a product, developed by a small company with an approximate $20m market cap being reviewed along with the multi-billion dollar companies in this space. Is UltraFlix for real? Is NanoTech for real? Is there an investment opportunity?
In my research in buying these TV's, I found several other key issues. Not all TVs are smart and not all smart TV's provide the same applications. Many require buying a Roku, Apple TV (NASDAQ:AAPL), Google Chromecast (NASDAQ:GOOG), or smart blu-ray player to get all the content. In my case I wanted MLB.TV and Amazon Prime along with Netflix and receiving all of these automatically on a smart TV was problematic. So where can people get UltraFlix?
Apparently, NanoTech has partnered with almost all of the major TV makers. The list includes Samsung (KRX), Sony (NYSE:SNE), Vizio, Hi-sense, Seiki, Panasonic, LG and Sharp. It also seems to be available via some of the streaming players like Roku and per the conference call Apple TV in the near future.
UltraFlix will be featured on Hi-Sense TVs with one click access. From my investigation, this is a huge feature because it puts the application one click away and people with these 4K TVs will go here to see their TV perform at a 4K level. Smart TVs are the future as these secondary players often require an additional remote control, changing input selections on the TV menu and other steps. One click functionality will often be the first "go-to" place the 4K user checks for content.
So we know that consumers will have broad access to the UltraFlix application but as the saying goes "Content is King", so where is the content? As I noted, outside of a handful of major releases much of UltraFlix content is not really that exciting. However, it is similar to what I see on the other well-known major providers as well. In fact it is probably better as there is quite a bit of diversity and opportunity to explore and experience 4K. There are some major motion pictures, IMAX films, concerts, sports, and other items. NanoTech does their own conversion to 4K so content for them revolves around licensing. As CNET noted, overall there simply isn't that much content out there. I think that is about to change in a big way for UltraFlix.
The company recently held a quarterly conference call and issued a shareholder letter. In reviewing these and other historical items, it seems that NanoTech is partnered and partnering with many of the major players in the market. Here is a list of these partners which is essentially a "who's who" of movie studios:
1.Paramount Pictures - Announced on CC - 2015 Academy award winning Film - 3 Month exclusive deal
2.Warner Brothers / Time Warner (NYSE:TWX) - Announced on Conference call. Additional history with WB
3.MGM - Major Motion Pictures already partnered
4.Sony Pictures - Announced on Conference Call
5.Lions Gate (NYSE:LGF) - Announced on CC
6.Miramax - Announced on CC
7.Millenium Films - Entire catalogue to be licensed per the CC
8.IFC - Announced on the CC
They also noted that they will shortly announce a 3 month exclusive 2015 academy award winning movie from Paramount. I am hoping it is intersteller which was fantastic in IMAX and can make good use of 4K technology. They have submitted the converted film to the director and studio for approval.
The movie offerings are becoming much more recent and more likely to attract new subscribers. It also seems they will be getting the entire catalogue of the Millenium movie library. This "A" list content will give UltraFlix the necessary credibility and desire from consumers in the market. So these partnerships got me thinking about a couple key questions.
How is this small company reaching these partnerships?
The first thing to understand is that NanoTech is really a leader in 4k. They have won several awards over the past couple years at the consumer electronics shows. The latest in January which was the Envisioneering Innovation & Design Award at the CES. NanoTech does the conversion work themselves. They have also reached a significant technological advantage. Apparently, they are able to stream 4K content at less than 8Mbps or up to half the bit rate of the competition. Netflix requirements are 15Mbps and 20 Mbps overall.
“
Netflix's 4K videos stream at 15 Mbps, and the company requires at least a 20 Mbps connection for the high-resolution stream to come through. Even for users who have a fast enough service plan, 4K streaming could be a problem during peak hours.
This is incredibly significant.
“
NanoTech's UltraFlix streaming 4K Ultra HD software achieves up to 50 percent better compression than with H.264; effectively delivering the same 4K Ultra HD quality at nearly half the bitrate. With enhanced video compression, adaptive streaming and intelligent bandwidth management technologies, UltraFlix can stream visually lossless 4K video with uninterrupted viewing at under 8Mbps, making 4K Ultra HD available to most North American and European internet subscribers today.
From a personal view, I have a wireless router located in one area of my house. I have multiple TVs, phones, tablets all drawing bandwidth. The further away from your router, and more obstructions, the less bandwidth you will receive as well. So while I purchase 50 Mbps from my internet provider, what I receive is usually far less depending on these factors. In some areas of my house I am lucky to get 10Mbps or less.
NanoTech claims to be able to stream 4K at less than 8Mbps which should give them a competitive advantage. NanoTech has attracted significant senior management and advisory talent which has been key to reaching these partnerships. It is quite impressive for such a little company:
1.Tim Cosgrove - President and CEO of the Sony, IMAX, and Discovery Communications 3net joint venture
2.Alan D. Stone - Former President and CEO at Sega Enterprises
3.Mitch Lowe from Redbox and Netflix
4.Aaron Taylor - From Roku
It is apparent to me that these folks are looking to turn UltraFlix into a major player in this market and have the experience and contacts to make this happen. Perhaps the Netflix for 4k! Mitch Lowe has seemingly already done this before. It's a big bet on a personal level for these folks but the ceiling is incredible high.
Taylor comes to NanoTech from BrightSign, the commercial division of Roku , where as Vice President of Sales, he helped build the company from a start-up to a $40M/year business and the market leader in digital signage media players.
http://www.businesswire.com/news/home/2013121...hP8Y_-FPct
CNET presented an article examining 4K content and identified several main providers and ways to receive 4K content. What I find interesting is that among the very few streaming choices available here (Netflix $26B cap (NASDAQ:NFLX), Amazon $172B cap (NASDAQ:AMZN), Direct TV), one name is placed right alongside the major players but is not well known. This is NanoTech's flagship product known as UltraFlix. NanoTech has a number of revenue generating businesses but from what I can tell, UltraFlix is clearly their key product with the highest ceiling.
UltraFlix brags to have the most 4K content available but a lot of the content may not be exciting enough to differentiate it from the competition. Also as CNET notes there just isn't much content anywhere. However, I am finding that this seems to be changing in a big way. Here is a product, developed by a small company with an approximate $20m market cap being reviewed along with the multi-billion dollar companies in this space. Is UltraFlix for real? Is NanoTech for real? Is there an investment opportunity?
In my research in buying these TV's, I found several other key issues. Not all TVs are smart and not all smart TV's provide the same applications. Many require buying a Roku, Apple TV (NASDAQ:AAPL), Google Chromecast (NASDAQ:GOOG), or smart blu-ray player to get all the content. In my case I wanted MLB.TV and Amazon Prime along with Netflix and receiving all of these automatically on a smart TV was problematic. So where can people get UltraFlix?
Apparently, NanoTech has partnered with almost all of the major TV makers. The list includes Samsung (KRX), Sony (NYSE:SNE), Vizio, Hi-sense, Seiki, Panasonic, LG and Sharp. It also seems to be available via some of the streaming players like Roku and per the conference call Apple TV in the near future.
UltraFlix will be featured on Hi-Sense TVs with one click access. From my investigation, this is a huge feature because it puts the application one click away and people with these 4K TVs will go here to see their TV perform at a 4K level. Smart TVs are the future as these secondary players often require an additional remote control, changing input selections on the TV menu and other steps. One click functionality will often be the first "go-to" place the 4K user checks for content.
So we know that consumers will have broad access to the UltraFlix application but as the saying goes "Content is King", so where is the content? As I noted, outside of a handful of major releases much of UltraFlix content is not really that exciting. However, it is similar to what I see on the other well-known major providers as well. In fact it is probably better as there is quite a bit of diversity and opportunity to explore and experience 4K. There are some major motion pictures, IMAX films, concerts, sports, and other items. NanoTech does their own conversion to 4K so content for them revolves around licensing. As CNET noted, overall there simply isn't that much content out there. I think that is about to change in a big way for UltraFlix.
The company recently held a quarterly conference call and issued a shareholder letter. In reviewing these and other historical items, it seems that NanoTech is partnered and partnering with many of the major players in the market. Here is a list of these partners which is essentially a "who's who" of movie studios:
1.Paramount Pictures - Announced on CC - 2015 Academy award winning Film - 3 Month exclusive deal
2.Warner Brothers / Time Warner (NYSE:TWX) - Announced on Conference call. Additional history with WB
3.MGM - Major Motion Pictures already partnered
4.Sony Pictures - Announced on Conference Call
5.Lions Gate (NYSE:LGF) - Announced on CC
6.Miramax - Announced on CC
7.Millenium Films - Entire catalogue to be licensed per the CC
8.IFC - Announced on the CC
They also noted that they will shortly announce a 3 month exclusive 2015 academy award winning movie from Paramount. I am hoping it is intersteller which was fantastic in IMAX and can make good use of 4K technology. They have submitted the converted film to the director and studio for approval.
The movie offerings are becoming much more recent and more likely to attract new subscribers. It also seems they will be getting the entire catalogue of the Millenium movie library. This "A" list content will give UltraFlix the necessary credibility and desire from consumers in the market. So these partnerships got me thinking about a couple key questions.
How is this small company reaching these partnerships?
The first thing to understand is that NanoTech is really a leader in 4k. They have won several awards over the past couple years at the consumer electronics shows. The latest in January which was the Envisioneering Innovation & Design Award at the CES. NanoTech does the conversion work themselves. They have also reached a significant technological advantage. Apparently, they are able to stream 4K content at less than 8Mbps or up to half the bit rate of the competition. Netflix requirements are 15Mbps and 20 Mbps overall.
“
Netflix's 4K videos stream at 15 Mbps, and the company requires at least a 20 Mbps connection for the high-resolution stream to come through. Even for users who have a fast enough service plan, 4K streaming could be a problem during peak hours.
This is incredibly significant.
“
NanoTech's UltraFlix streaming 4K Ultra HD software achieves up to 50 percent better compression than with H.264; effectively delivering the same 4K Ultra HD quality at nearly half the bitrate. With enhanced video compression, adaptive streaming and intelligent bandwidth management technologies, UltraFlix can stream visually lossless 4K video with uninterrupted viewing at under 8Mbps, making 4K Ultra HD available to most North American and European internet subscribers today.
From a personal view, I have a wireless router located in one area of my house. I have multiple TVs, phones, tablets all drawing bandwidth. The further away from your router, and more obstructions, the less bandwidth you will receive as well. So while I purchase 50 Mbps from my internet provider, what I receive is usually far less depending on these factors. In some areas of my house I am lucky to get 10Mbps or less.
NanoTech claims to be able to stream 4K at less than 8Mbps which should give them a competitive advantage. NanoTech has attracted significant senior management and advisory talent which has been key to reaching these partnerships. It is quite impressive for such a little company:
1.Tim Cosgrove - President and CEO of the Sony, IMAX, and Discovery Communications 3net joint venture
2.Alan D. Stone - Former President and CEO at Sega Enterprises
3.Mitch Lowe from Redbox and Netflix
4.Aaron Taylor - From Roku
It is apparent to me that these folks are looking to turn UltraFlix into a major player in this market and have the experience and contacts to make this happen. Perhaps the Netflix for 4k! Mitch Lowe has seemingly already done this before. It's a big bet on a personal level for these folks but the ceiling is incredible high.
