ReplayTV News/Outlook - HD PVR

[Loren Kruse.]

11/16/04
FY2004 Interim Financial Results
http://www.dm-holdings.com/eng/ir/presentations/2004/document/20041116_en.pdf

DNNA Business Overview DNNA Business Overview

DNNA business has become more predictable–OP loss was relatively same as last year

–both RTV and Escient were significantly lower loss than last year. Rio 1sthalf profits were offset by price adjustment in 2ndhalf of last year

–Replay TV is on track of the plan to sell out the stand-alone DVR inventories during FY04

–Advanced Center for Technologies (ACT) are making progress to generate business utilizing PVR technology

–Escient is forecasted to be profitable in 2ndhalf


D&M Network Vision
PAGE 26 - HD PVR (LITE SERVER) - MASTER BEDROOM
Content can be stored here (light server) and streamed to other equipments. Keep good combination with the room design.

Media Server
All content can be stored in un-seen space.
Content can be streamed out to other client and servers.
Make legacy type A/V equipment communicable with servers.
D&MS/WPC or PDAMODEM / ROUTER
Content is supplied from networked storage and media (DVD, CD).


Reflecting high definition (HD), including digital broadcasting, is becoming a major trend in AV product market, D&M started development of technologies necessary for HD Media Server

In realizing the product, D&M takes staged development approach, where new products are launched at each stage, to quickly change developed
technologies into real business:

– 1st stage: AV products with Media Extender function
– 2nd stage: HD-PVR with Media Extender, Audio Streaming Server
– 3rd stage: HD Media Server with full security transmission (DTCP-IP)



Replay running better than breakeven on operating cash flow basis (due to lifetime subscribers)



ReplayTV Overview/Business Plan ReplayTV Overview/Business Plan

•Worldwide Market for DVR products is exploding, and combo DVD-R/DVR will dominate the video source component business
•Hardware and associated service revenue can be a substantial contributor to our business
•Replay running better than breakeven on operating cash flow basis (due to lifetime subscribers)


FY04 2H Business Plan

•Growth for category –DVD-R / DVR combo units.
•Expand EPG service business to outside North America–Backend service is key to PVR functionality–Now under serious investigation into formalization of global service
•Focus distribution through select high volume retailers•Build an installed base for IP content services and future revenue streams, allow retailers to use their preferred content providers ReplayTV will be breakeven (operating profit basis) in FY 2004


Potential business partners–Engineering discussions underway with seven firms under NDA
•Attractive solutions
–ReplayTV: strong networking and advanced search features
–Escient: DVD navigator, DVD recognition engine and aggregated music services. Also have been a valuable offering

FY04 2H Business Plan
Expect to close two technology licensing deals and one IP licensing deal

•Two internal development projects will be completed by the end of 2H
•Focus on improving intellectual property position –three new patents should issue in 2H FY2004

[MrFussy]

Sounds like some promising info to me.

[Loren Kruse.]

I agree...very good news...

I thought the following was intriguing -

* Expand EPG service business to outside North America–Backend service is key to PVR functionality–Now under serious investigation into formalization of global service

* Reflecting high definition (HD), including digital broadcasting, is becoming a major trend in AV product market, D&M started development of technologies necessary for HD Media Server

– 1st stage: AV products with Media Extender function
– 2nd stage: HD-PVR with Media Extender, Audio Streaming Server
– 3rd stage: HD Media Server with full security transmission (DTCP-IP)

* Two internal development projects will be completed by the end of 2H

* Three new patents should issue in 2H FY2004

* Replay running better than breakeven on operating cash flow basis (due to lifetime subscribers)

* HD PVR (Lite Server)


Sounds like they will have a high end HD Media Server and a HD PVR (Lite Server). HD PVR (Lite Server) continued marketed to existing customer base??? While the HD media server marketed to the high end in conjunction with the HD PVR (lite server) media extender.

[hawkmultimedia]

Excellent post! Let's HOPE they've got something up their sleeve. :D

[Amazingly Smooth]

Anything is better than what we've had for the last two years...

[krkaufman]

Bummer. No mention of the double-select bug.

[Markito]

Hee hee!
LOL!!!!

[GTDaveMac]

Wait until you guys look at the picture they used. Even MORE promising:

and also in the "Network Vision":
"Products for mid-range and high end systems"

Woo hoo!

[gweempose]

Originally posted by krkaufman

Bummer. No mention of the double-select bug. Thanks, I haven't laughed that hard in a long time.

If I interpret this information correctly, it looks like DNNA is finally going to do something with all that cool technology they inherited when they purchased ReplayTV from SB. Well it's about time!

I found this to be of particular interest:

"Potential business partners–Engineering discussions underway with seven firms under NDA"

For years I have been saying that the key to Replay's success was to aggressively pursue opportunities to license thier OS, GUI, etc. How cool would it be if there were a myriad of products from various manufacturers to choose from? I hope DNNA can pull it off, but it may me too late in the game. It seems like everyone is really well entrenched in their own proprietary systems these days. Unfortunately, I have yet to see anything that comes even close to Replay's networking capabilities and other advanced features.

[Lark888]

Well, I do find their jpeg choice for the HD-Server interesting. Then again - maybe it was all they could find. :)

[gweempose]

Originally posted by GTDaveMac

Wait until you guys look at the picture they used. Even MORE promising:
This is very interesting indeed. It appears as though DNNA is looking at the big picture and has a solid understanding of the importance of whole-house interconnectivity. For the first time in while, I am truly excited about the future of our beloved DVR. Perhaps it won't be called ReplayTV anymore, but it will surely incorporate all of the features we have grown to love, plus many other powerful new technologies. Bring it on! :)

[GTDaveMac]

Yeah, I mean... if you look at it, you have this media server (probably very expensive) to hold all of your content, hidden away in a rack, to deliver to the whole house. It even can make "legacy" equipment content available.

Then you have a theater that can get content from the media server or a local DVD, build all in one. This also is probably expensive.

But then you have a HD PVR (ie future Replay?) that also stores content and seemingly can run standalone. (Probably not as expensive!) The media extenders seem to be like "streaming thin clients" even though the text says "streaming function is not necessary." But I believe this means you don't stream from them, unlike the media server or the Lite Server.

Then, there on the side, you have a PC hooked up to the network with software, probably the "Photo Software" :D OK, well let's hope they write some more, similar to DVArchive.

[repnewbie]

^^^^^ The double select bug strikes again^^^^^^

[Amazingly Smooth]

Well, I do find their jpeg choice for the HD-Server interesting. Then again - maybe it was all they could find.

Probably could have downloaded a jpeg of the HD Tivo...

[Slack]

I'm gonna chime in all curmudgeonly like & say...

Remember that Voom demo video from some trade show? That stuff worked / was more than vapor ware. DNNA had better effing hustle if they do not want to get left in the dust.

Powerpoint slides are nice, but...a working demo has jaw dropping power.

[dewolfxy]

Originally posted by Slack
Powerpoint slides are nice, but...a working demo has jaw dropping power.

OT, but your comment about a working demo reminded me of this (the second quote):

"Any sufficiently advanced technology is indistinguishable from magic."
-Arthur C. Clarke

"Any sufficiently advanced technology is indistinguishable from a rigged
demo."
-UNIX Fortune program

[Loren Kruse.]

Originally posted by Slack
Powerpoint slides are nice, but...a working demo has jaw dropping power.

Just remember that this info was not a product announcement...but a financial/vision report.

Financial Disclaimer: Statements made in this web site regarding D&M Holdings Inc. that are not statements of historical fact may include forward looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are just predictions and that actual events or results may differ materially. Forward looking statements involve a number of risks and uncertainties surrounding the integration of the company’s acquisitions, competitive and industry conditions, targeted cost savings programs, market acceptance for the company’s products, technological changes, developing industry standards and other factors related to the company's businesses. Risks and uncertainties also include the impact of any unforeseen future events.

D&M Holdings is not obligated to update or revise any forward-looking statements based on new information, future events or otherwise. D&M Holdings also assumes no responsibility for problems including but not limited to incorrect information or problems resulting from downloading. In addition, this web site is not an offer or a solicitation of an offer to buy or sell securities.

I expect we will see some more rumors or announcements the first part of next year...

[f2000Keith]

Excellent news!! Looks like they're thinking very large scale. I just hope the price tag isn't large scale as well. I guess like everything else though that the price will come down in time. At least they're thinking about the future. Always a good sign for things to come.

Side note: Forgive my ignorance... I tried searching for the 'double select' bug, but came up with only this thread. Can someone explain in short detail what it is?

[calvin940]

Originally posted by Loren Kruse.

* Expand EPG service business to outside North America–Backend service is key to PVR functionality–Now under serious investigation into formalization of global service


Perhaps they should *actually* support NORTH AMERICA before trying to expand their EPG outside of NA

Calvin

[jones07]

Maybe Canada don't want foreign DVR companies businesses to expand their. We are know how folks up there do not want things to become to Americanized ;)

[jones07]

I like to thank the OP for the post. Maybe this bet of news will quiet some of the doomsayers that lurk here who think Replay software base DVR's are dead.

[Loren Kruse.]

Originally posted by calvin940
Perhaps they should *actually* support NORTH AMERICA before trying to expand their EPG outside of NA

What makes you say that?

[calvin940]

Originally posted by Loren Kruse.
What makes you say that?

The fact that I need to use WiRNS (thank god for you people) to get my Canadian guide information for ExpressVu on to my Replay.

I know it's only been owned a short time by these guys, but I don't think it should be a stretch to support us Canadians.

Calvin

[MIS-Man]

Interesting - I have basically this setup already. I have two Replays with over 1 TB of storage between them in my basement and some whole home video switches / IR extenders and am accomplishing what their vision is. I should be a tester.

[j.m.]

By "Media Extender function," I wonder if this is what they are talking about...
http://www.microsoft.com/windowsxp/mediacenter/evaluation/devices/extender.mspx

They would be smart to get into that action on the ground floor with MS.

[GTDaveMac]

Well j.m., I doubt that they are talking about MS, but in essence it would be the same thing... a thin client that can play all of the content on the server or on a replay.

[Loren Kruse.]

Media Extender function - they mean small linux box with audio and video ports running DVArchive ;)

[MIS-Man]

Hehehe - A hacked Xbox does this just fine for about the same price that the little media boxes I see out there cost.

[MethodMachine]

I sense a disturbence in the force:

ETHERNET [DTCP-IP for copyright protection]

see previously posted attachement (http://www.avsforum.com/avs-vb/attachment.php?s=&postid=4700326&fullpage=1)

Every silver lining has a cloud...

[GTDaveMac]

Why? It does what DVArchive *will not* do anyways:

"Digital Transmission Content Protection over Internet Protocol, a specification for copy protection of copyrighted content that is transferred over digital interfaces in home networks that adhere to IP. Under this specification, digital content can be shared securely between devices in a user’s home but not shared with third-parties outside the home network. Using an authentication scheme, DTCP-IP allows the user to designate devices in the home network as trusted destinations that can transfer data back and forth, but DTCP-IP will not allow the content to be transmitted over the Internet to be shared outside of the home network."

[Scyber]

Originally posted by jones07
I like to thank the OP for the post. Maybe this bet of news will quiet some of the doomsayers that lurk here who think Replay software base DVR's are dead.

DOOM! DOOM, I say! DOOM!

[GTDaveMac]

So do you mean:

http://www.doom3.com/images/pop_screen_r4c2.jpg

[jones07]

Originally posted by Scyber
DOOM! DOOM, I say! DOOM!

LOOK...............There goes a doomsayers right now :p

[CalypsoCowboy]

All this talk is great but actually hardware would be better.

[joesc1]

I'm thinking they might be announcing something at CES in January. Just like they did last year with the Escient box that won best of show (Too bad they never got that out. )

Lets hope!

[Bobcrane]

Is there anyone besides me that looks upon DNNA advances not for future purchases but just for guaranteed program guide?

Just curious.

[RFontenot]

I'm with you. I very happy with my RTV/DVArchive setup and don't plan on upgrading to HDTV anytime in the near future.

My biggest fear would be if DNNA decides to "upgrade" our existing RTVs by implementing DTCP/IP on them, and breaking DVArchive.

RF

[stevekelso]

I guess the thing that bothers me about this is that
What about there current customers Us,you know people that made a big investment in 2 or more replays ?
No Upgrades No New Features Nothing !
In stead of trying to Force people to have to Dump all there old Replays just to get a New feature ?
I understand Why they do that
but Personally I think that really Sucks,
to not throw us a bone once and a while and give us a new feature!

Thats my thought on it anyway.

[RFontenot]

I hear you, I just bought my third RTV. Think of it this way, though, we've been able to enjoy features for years that other DVRs still don't have.

PC and A/V companies are just now beginning to realize that streaming audio and video between devices in the home is what consumers want, even though they don't ask for it in those words.

RF

[Bobcrane]

When I first read this I wondered why you felt entitled to an upgrade. I mean, Apple and Microsoft don't offer free upgrades. You can't get the next feature of your VCR so easily.

But then I remembered DNNA's arche nemesis in thi arena, Tivo. If I remember correctly when Tivo upgrades the OS it trickles down to all series two standalone and DirectTivo boxes eventually.

So what's up DNNA?

Originally posted by stevekelso
I guess the thing that bothers me about this is that
What about there current customers Us,you know people that made a big investment in 2 or more replays ?
No Upgrades No New Features Nothing !
In stead of trying to Force people to have to Dump all there old Replays just to get a New feature ?
I understand Why they do that
but Personally I think that really Sucks,
to not throw us a bone once and a while and give us a new feature!

Thats my thought on it anyway.

[YBDBDOO]

The missing element is $$$ for DNNA

I would gladly pay for a software update (on 5 boxes) that solves the lengthy list of nuances that old pros and newbies complain about. I don't list these nuances here since I don't want to take this thread OT, but there are lots of opportunities for DNNA to make these units work better.

[Bobcrane]

Originally posted by YBDBDOO The missing element is $$$ for DNNA
I'd considered that as well and wondered where Tivo gets its revenue. Sure a percentage is new lifetime but there is also the monthly subscribers Doesn't DNNA have those or is that a small percentage?

[j.m.]

Originally posted by Bobcrane

But then I remembered DNNA's arche nemesis in thi arena, Tivo. If I remember correctly when Tivo upgrades the OS it trickles down to all series two standalone and DirectTivo boxes eventually.


These are Tivo's current products. Do Series 1 get the same updates? I don't think so (at least not major ones). Also, DirecTivos don't necessarily get the same features as a SA Series 2. This is partly because they have different hardware capabilities.

I'm just not sure what the issue is here. If there is a new ReplayTV, the reality is that most of its desirable features (HD, expandability, MP3, more CPU power, etc.) will likely simply be unachievable with 5xxx hardware. It still isn't 100% outside the realm of possibility that the 5xxx will receive some final stability fixes before it is laid to rest. However, there just comes a point when the hardware is the limitation, not the software; and the 5xxx is approaching that.

[sixt7gt350]

j.m.

Partly because of hardware, but mostly because of DirecTV saying, "NO!"
Their worst fear is the ability for consumers to move the non-encoded content on to something else.
I dumped DirecTV at the last rate increase and there's another one right around the corner. They don't want anyone doing anything with their signal unless they can control it and also make a buck (or 5) in the process.

[icecow]

Originally posted by krkaufman
Bummer. No mention of the double-select bug.

That line is Still froggin funny :) :)

Classic