DCIA KeynoteMARCH 9, 2010

Confidential 2010 Diversion Media LLC

What is “the Cloud”?

•Computing as a utility

•As many processors as you want, instantly

•The new century “time share”

•Where Google has been living all this

time!

Confidential 2010 Diversion Media LLC

Who Belongs There?

• Anyone who needs lots of processing power

• Image processing (Media, Medical)

• Analytics (Finance, Online, Sales)

• Computational modeling (Pharma)

• Anyone who needs to scale fast

• Nearly all new web apps

Confidential 2010 Diversion Media LLC

WHAT IS HD CLOUD?

• Handles large files and HD bit-rates (1080, 200Mbps)

• Offers massive concurrency, throughput, and redundancy.

• Leverages cloud computing to deliver tremendous economy versus traditional encoding solutions.700,000+ Transcodes since May ‘09 launch

Benchmark: 900 Simultaneous 100Mbs transcodes

HD Cloud is an enterprise-grade, on-demand TRANSCODING SERVICE.

Confidential 2010 Diversion Media LLC

WHO IT’S FOR

•CONTENT OWNERS with large libraries of media

•CONTENT DELIVERY NETWORKS who want to add

best-of-breed transcoding to their ecosystem

•VIDEO SERVICE PROVIDERS with a need for

massive encoding throughput

Confidential 2010 Diversion Media LLC

WHY THE CLOUD?

•Transcoding: computationally expensive

process

•High peak-to-trough ratio (“bursty”)

•CapEx hurts media companies more than ever

•Rapidly growing need-set requires high

scaling

Confidential 2010 Diversion Media LLC

VALUE PROPOSITION

•HIGH QUALITY output

•RAPID turnaround

•LOW COST ($0.99/GB; $144/Feature*)

•HIGHER MARGINS

*assumes 20Mbps mezz file, 500Kpbs, 1Mbps, 1.5 Mbps, 2 Mbps, & 2.5 Mbps outputs

Confidential 2010 Diversion Media LLC

CUMULATIVE COST OVER TIME COMPARISON

3 dual core servers, software licenses, AC, rackspace, power, codec licensing, personnel and training

Internal Solution assumes:

$0.00

$200,000.00

$400,000.00

$600,000.00

$800,000.00

Q1 Q2 Q3 Q4 Q5 Q6

HD Cloud Internal Solution

$1 per Gigabyte, 1 stafferHD Cloud assumes:

Confidential 2010 Diversion Media LLC

SPEED COMPARISONHow long does it take to

encode 100 2-hour movies?

Internal Solution has 3 dual core machines for 6 concurrent encodes.

HD Cloud allows 100 concurrent encodes. Initial file ingestion at 30Mbps factored into HD Cloud time.

Confidential 2010 Diversion Media LLC

PREMIUM SERVICES

1. Source File is de-muxed and segmented

2. Segments are transcoded concurrently on multiple

processors

3. Segments rejoined and re-muxed for final outputted file

HD Accelerate- Encodes any length file in 12 minutes- Great for large files (full length movies) and big library re-encoding jobs

Confidential 2010 Diversion Media LLC

DEMO

http://www.hdcloud.com