Unlocking DVD Burning
The Hollywood Standard in DVD...
Movie studios have approved new movie-copying technology that adds a digital lock to DVD's that are burned in a computer or at a retail kiosk.
The lock is called CSS, or the “content scrambling system” encryption. This currently comes standard on all pre-recorded DVD's as a literal lock, and is able to be played back when any DVD player's key opens it.
Sonic Solutions Inc.'s (SNIC:NASDAQ) Qflix system was rolled out yesterday. This system will now add a lock to all DVD's that are burned via a computer, and will play back on standard DVD players.
In order to use Qflix, consumers will have to buy new blank DVD disks as well as a new or updated DVD burner.
Now that studios have approved the movie-copying technology, movie download services like Movielink and CinemaNow can give customers the options of burning a DVD, albeit only twice. The movie studios agreed to the “twice only” caveat for fear of rampant piracy.
The system will be especially advantageous for the retail movie kiosk concept that makes on-demand movies available for consumers. Instead of burning the movies ahead of time and putting them in a machine, the kiosks allow a customer to choose what they want, and then have it burned themselves, eliminating considerable DVD burning overhead for studios.
SNIC's solution takes about 10-15 minutes to burn a DVD.
The companies that are initially taking part in Qflix's dissemination include Verbatim Corp. (which makes the compatible DVD disks), movie download service Movielink, Video on Demand provider Akimbo Systems Inc., and Walgreen Company (WAG:NYSE).
Wal-Mart Stores Inc. (WMT:NYSE) is also batting around the idea of installing DVD kiosks at their store locations.
Sonic Solutions Inc. (SNIC:NASDAQ) is “The Hollywood Standard in DVD.” It's the leader in digital media software. The company powered Europe's first shipping HD DVD title in 2006 and unveiled the first commercial as well as the first all-in-one DVD production system in the late 90s.
Currently SNIC is only priced at about $17.20 per share. Its daily chart shows support at all three major moving averages, rising RSI and extremely healthy, and rising, Money Flow.
I believe video-on-demand, and the instant gratification of burning any DVD you want at an in-store kiosk is a trend with legs for both consumers and retail stores.
Therefore, I advise you, in my first free Market Report pick of the year, to pick up shares of Sonic Solutions Inc. (SNIC:NASDAQ) at its current price at the open on Monday morning.
I'll update you on the position regularly.
And finally, something a little interesting for Friday: vacuum shoes. That's all I have to say.
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And everyone have a good weekend!