On-Demand Video DVD Creation and Distribution

Nero and Polar Frog Digital Partner for On-Demand Video DVD Creation and Distribution

Relationship Makes DVD Kiosk Technology a Reality in the U.S.; Revolutionizes Retailer and Consumer Access to Commercial DVD Content

GLENDALE, Calif. & SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Nero, creators of liquid media technology, and Polar Frog Digital, a provider of innovative on-demand video services for DVD and downloadable solutions, today announced an exclusive U.S. agreement to bring on-demand video DVD creation and distribution to retailers and consumers. Together, Nero and Polar Frog Digital are extending digital entertainment content beyond its traditional confines, enabling on-demand DVD production for online and traditional retailers and making the much-touted commercial DVD kiosk delivery model a reality.

“The Kiosk format and ability to manufacture commercial DVDs on-demand brings countless benefits to retailers in terms of reduced overhead and increased customer satisfaction,” said Kurt Scherf, vice president and principle analyst with Parks Associates. “Many have argued that digital downloads would serve this need, but while consumers have seen the benefits of downloads, there are still limitations to how they can be used across devices. Today, the DVD still offers the greatest flexibility in terms of the ability to play it on multiple devices or share it with others. A secure on-demand manufacturing solution, such as what Nero and Polar Frog Digital will be offering, unlocks the potential of greater access to premium content in a protected format.”

While there has been significant industry discussion on the importance of on-demand video DVD manufacturing, the use of proprietary standards and file formats has inhibited the ability for other organizations to bring a viable solution to market. Nero is able to deliver on this new content frontier because of its commitment to aligning and developing with industry open standards, such as those put in place by the DVD Forum, and platform interoperability. Nero has also led the market in the incorporation of cutting-edge features and formats, made possible by the company’s longstanding expertise in engineering and deploying codecs, applications and services. As a result, the partnership between Nero and Polar Frog Digital will meet the needs of consumers by alleviating the limits and constraints of expensive proprietary formats, special DVD players and non-standard media.

Polar Frog Digital is the only on-demand company to offer the ability to burn, buy, download and rent multiple medias. This is made possible by their adoption of Nero’s vision for liquid content distribution and creation options for consumers. With the Polar Frog solution consumers have the ability to choose where and when they want to buy their media. Agnostic delivery options will serve to expand the sales of media in traditional and nontraditional retail channels alike.

“Over the last decade, Nero has enabled innovations delivered by the world’s largest consumer electronics brands,” said Richard Carriere, president, Nero Inc. “Together we are committed to liquid content creation anytime, anywhere and on any device. The experience of and ability to manufacture commercially released video DVDs on-demand will revolutionize the retail industry and bring a truly liquid media experience to consumers.”

Each year thousands of movies, television programs, educational and special-interest titles are created. However, due to shrinking shelf space and cost of manufacturing, only a fraction will become available on DVD, and fewer still will remain available six months after release. By using kiosks, retailers can stock an entire physical DVD inventory in as little as two square feet of store space. Gone are the days of needing to anticipate how many copies of a new title release to have on hand or worrying about DVD theft. With a kiosk format, inventory “shrinkage” can be eliminated and retailers are able to offer their consumers an unlimited quantity and assortment. Retailers no longer have to fear that a consumer will leave without purchasing a DVD because the title that they were looking for was out of stock.

“On-demand manufacturing of commercially released DVD video content will revolutionize both the retail marketplace and the way that consumers experience and access video,” said Todd Rosenbaum, CEO of Polar Frog Digital. “The Polar Frog/Nero solution marks the culmination of years of cooperation and provides not only retailers but movie studios, consumer electronics manufacturers, and content distributors a new means to capitalize on digitally distributed commercial video content.”

With the joint Nero/Polar Frog Digital solution, consumers will have access to a full range of commercial video copy-protected content with Content Scrambling System (CSS) encryption. Available in late 2008, the offering will be based on Polar Frog Digital’s patented “DVD On Demand” software and licensed library of digital movie and television content. This library is the world’s largest database of on-demand content available at retail.

For more information about Nero and Nero products, visit www.nero.com. For additional details on Polar Frog Digital, please visit www.polarfrogdigital.com.