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Digital Containers’ Next-Generation ‘Superdistribution’ Software Will Generate Real Profits for Digital Entertainment Industries

August 13, 2008

A breakthrough system of ‘superdistribution’ to freely share copyrighted material over the Internet via ‘digital containers’ is rolling out today, aiming to change the way content owners deliver and profit from distributing television, games, books, movies and music entertainment over the Internet.

Santa Monica-based Digital Containers, a software company providing ‘superdistribution’ of online content for entertainment companies, today introduces a new software system for content owners to use digital containers to store, share and distribute copyrighted content without loss of control, while providing both monetization and metrics to content owners. The software system allows content owners to leverage peer-to-peer technology and other Web advances. Rather than punishing web users for making a copy of a file (44% of Internet use is file-sharing), users of digital containers are now encouraged and rewarded for making copies for friends, family, backup and more.

The company plans to license its software and related intellectual property to some of the world’s largest content, communications, software and search companies. The company has already begun talks with several leading search, software and content firms looking to harness superdistribution for their sectors. Benefits of using digital containers include:

For Content Owners

— Dramatically lower distribution costs

— Extension of existing advertising revenue models

— Enhanced metrics and monetization capabilities (including integrated merchandise)

For Content Users

— Ability to keep the digital entertainment (movies, TV, books, games) they want

— Ability to copy and share their files legally

— A richer user experience that works online and off

Behind this game-changing technology are two digital media and technology executives – Tom Patterson and Jay Samit – who have teamed together to tackle the most vexing issue facing the entertainment industry today, that of how content owners can realize revenues from Internet distribution of copyrighted material.

“‘Superdistribution’ is the long-awaited element in the movement of media across the Internet. Content owners can finally generate the long-promised significant and lasting profits from the Internet,” said Digital Containers CEO Tom Patterson. “Users are demanding the ability to share files among themselves, and our system turns that behavior into a win-win for users and content owners alike.”

“With the awarded patents and technology we have in place, Tom and I aim to bridge the gaps that have historically challenged the technology and entertainment industries,” added Jay Samit, chairman of Digital Containers.

The digital containers system is protected by a series of awarded patents that give licensees of the technology a firm upper hand over competitors in their market. These patents include key business elements for content owners, search companies, software developers and communications concerns, including the securing, delivery, regulating and tracking of valuable digital media files.

The entertainment industry has gotten past the fear of putting its content online, and is now focused on how to profit from it. “By lowering the big three costs of servers, bandwidth, and customer acquisition, while increasing revenues from advertising, metrics and integrated merchandise sales, Digital Containers can help any content owner turn a profit online,” said Patterson.

About Tom Patterson and Jay Samit

Tom Patterson is a successful venture-backed Internet company founder and CEO, a former technology partner at both Deloitte and KPMG, and former chief eCommerce strategist for IBM. Patterson, a published author, appears as a frequent guest expert discussing Internet topics on media outlets including CNN, CNBC, CBS and NBC News.

Jay Samit is the former Sony executive vice president who devised and implemented the company’s digital strategy for music, video and e-Books. He also led EMI as global president for digital distribution, breaking new ground with wireless, ringtones, streaming radio and secure P2P deals.

About Digital Containers

Digital Containers, formally DRM Technologies, is a digital entertainment platform that uses the power of ‘superdistribution’ to help content owners significantly lower distribution costs, extend distribution infinitely across the Web, and provide new valuable Web metrics and monetization channels. The company’s patented technology of ‘digital containers’ offers a complete content distribution system and a new online format for content owners to protect and distribute their valuable monetized content of movies, music, games, business plans and more. The Santa Monica, California company is led by digital media veterans Tom Patterson and Jay Samit. For more information, visit www.digitalcontainers.com.




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