Technology has Capacity to Transform Multiple Billion Dollar Markets
Focused & Aggressive Approach, Initially Targeting 4 Video Industry Sectors
Linius Technologies Limited (ASX: LNU) (Linius) is pleased to communicate a summary of its near term Commercialisation Plan.
Linius to Target Four Key Sectors:
- Personalised Advertising
- Piracy / Media Security
- Video Search
- Security and Defence
Chris Richardson, CEO of Linius commented,”In 2016 we are pleased to have successfully delivered on all aspects of our Operating Plan and are now accelerating our Commercialisation Plans.”
Highlights from 2016 included:
- listing on the ASX
- Completing the technology development of the core product, the Video Virtualization Engine™ (‘VVE’)
- Maintaining and enhancing our global patent portfolio
- Delivering completed technology showcases with 3rd parties
- Attracted strategic investment from the Kirby family
- Under budget and retaining cash reserves
Linius is now planning to launch four distinct business units, each to have its own commercial category.
Chris Richardson further commented,Each of the four markets targeted are of significant size, in the 10’s of billions of dollars of revenue, and we believe Linius provides the ability to transform each. The divisional approach allows us to hire specific expertise for each while providing focus and accountability to operations.”
The four markets Linius aims to transform are as follows:
Linius developed this capability with commercialisation partner Digisoft in 2016.
The TV advertising market was worth over $70 billion US in 2016, in the US alone.
Linius could transform this market by allowing every cable TV ad to be personalised to the individual viewer. Linius demonstrated the capability to shareholders on 23rd November, 2016, and a recording of the demonstration can be seen on the Linius website.
2. Piracy & Media Security
The Media Security division is focussed on reducing global piracy and securing revenues for content owners.
The Global box office market is worth over $US38 billion per annum.
The best current research indicates that box office sales alone are reduced by 15% from piracy — a $6.7 billion US loss, just on ticket sales, but video industry loses much more beyond the box office revenues.
The Search division utilises the VVE to enhance search returns, stitching video together on the fly to provide much better search results and therefore much greater monetisation opportunities for search engine providers.
There are approximately 30 search engine providers across hundreds of thousands of video websites, ranging from Google to specific search engines designed for niche interest websites.
4. Security Service Applications
This division provides capability that dramatically increases response times for Government agencies and corporations tasked with surveillance and threat management.
The video surveillance market is growing at 16.56% and is expected to reach $71 billion US by 2022.
Chris Richardson said, ”all four divisions are being established in the US, with a global remit. The recruitment is well down the track. In parallel, we continue to develop commercial opportunities through our partners and direct to the market. We have also established a commercial lab that provides support to each division and continues to develop business cases for future additional commercialisation opportunities.”
Linius has the funds to hire the division heads, and to commence the commercialisation of each division. Linius will review funding requirements as we take each division to commercial markets.
Linius has identified multiple lines of revene from each of the 4 business units including software licenses, usage fees and revenue share, all of which are in line with existing revenue generation methods in each market segment.
Linius’ VVE is patented around the world. Linius continues to invest in new patents that support the four divisions in addition to the un-launched user cases.
For more information, please contact:
Chief Executive Officer
T: +61 3 9607 8234
Investors: Taylor Rafferty, LLC
Eric Ando, Associate
Media: Rod North
Bourse Communications Pty Ltd
T: +61 3 9510 8309 M: +61 408 670 706