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Open Insight #13

(Click here to read the Swedish version)

Welcome to Open Insight, our blog for investors. This is where you can find out more about our offering and market position, our progress, our challenges and our growth.

The trend is clear: our number of cloud sales is continuing to rise, with increased usage by our existing Nimbra Edge customers. In this edition we bring you news about the contract we signed in August with a leading American service provider and about our new sales and partnership agreement with Austrian streaming provider NativeWaves. We’ll look more closely at the new business models made possible by Nimbra Edge and discuss our latest investments in ST 2110 and JPEG XS. And last but not least, we’ll talk about preparations for the annual IBC show to be held in Amsterdam in early September.

Nimbra Edge introduces brand new business models

As I have mentioned before in Open Insight, cloud and Internet use is increasing in the market throughout the value chain, from production to distribution. As our Nimbra Edge solution is entirely software-based, it introduces user-based, recurring business models of a completely new kind.

Cloud services are commonly prepaid. This is partly to ensure long-term service provision and partly to maintain uninterrupted access to the flexibility and variation afforded by cloud technology.

Customers can choose to buy capacity on a pay-as-you-go basis or pre-pay for a certain number of streams, which they can use within a certain period of time. Customers can also choose to pay for a minimum level for a fixed period of for example three years, an arrangement that also involves pre-payment. All these business models frequently include hardware for conversion and connection of the streams to Nimbra Edge.

One of the major advantages here is scalability. Once the product is installed, its capacity can easily be expanded, which in turn increases stream usage.

Cloud networks are used throughout the value chain, for example in the production of sports events, where all cameras are connected to Nimbra Edge and the content is then produced in the cloud. This is the way that The Switch is utilizing our solution and the cloud. Nimbra Edge is also used for contribution of the produced events to content owners and to distribute channels to broadcasting locations for transmission to TVs, screens or mobiles.

Substantial Nimbra Edge order in the US

We were very pleased to sign a Nimbra Edge order in July with a new leading American service provider, with a total order value of over USD 700,000. The order includes hardware, which represents less than 10% of the order value, and a software license agreement with an initial term of three years. The solution regards primary distribution of more than 1,000 channels for final delivery to TVs, screens or mobiles.

I am very pleased that we have signed our largest Nimbra Edge order so far, but what is perhaps even more important is that our overall number of cloud sales is continuing to grow. We are also seeing an increase in usage by our existing Nimbra Edge customers.

New sales and technology partnership with NativeWaves

In August we signed a contract with NativeWaves, an Austrian provider of advanced streaming solutions to the broadcast, e-sport and live entertainment industries.

The contract will enable broadcasters and streaming providers to offer their users an improved viewing experience for all types of live events via the new platform NativeWaves EXP, in which Nimbra Edge is included. Audiences can enjoy additional content such as different camera angles, audio tracks, instant replays and social media integration. Nimbra Edge makes it easier to manage partner feeds from multiple sources, which reduces project and operations overheads.

The partnership came about as a direct result of an IBC Accelerator Media Innovation Programme project that took place in 2021. NativeWaves and Net Insight were part of a multi-company team examining the evolution of 5G for remote production and live sport.

The project’s aim was to show how 5G could be used to create a unique experience using traditional broadcast cameras, AI cameras, drones and mobile phones. As explained above, the business model is based on the number of streams used. The sports events chosen by the Accelerator team to test 5G workflows and technology were two concurrent football matches that took place during the Arab Cup in Qatar in December 2021.

Read the press release NativeWaves and Net Insight Announce Sales & Technology Partnership

We make it simpler to use ST 2110

As the media industry undergoes an incremental transition to IP workflows, there is growing demand for media applications that are easy to use. In addition, easier management and implementation is one of our most important customer promises. We are now taking the first steps to offering the key functions needed for a seamless transition to IP – in one and the same platform.

As we recently announced we have developed a suite of ST 2110 functions that enhance our Nimbra 1000 platform. It is the most significant function upgrade to date, and enables our customers to build any type of IP-centric workflow in any combination of new and existing networks. The next step will be to also transfer these services to Nimbra 600.

Customers gain valuable flexibility, including for applications with high bandwidth requirements (up to and over 100 Gbps). They can also combine the ST 2110 functions with existing compression standards such as JPEG XS, JPEG 2000 and MPEG4 in their WAN networks.

Another important aspect is safety. As media networks become increasingly open, it is crucial for network access to be secure, trusted and tamper-proof. Net Insight’s IP Media Trust Boundary plays a key role here, as it includes functions such as real-time IP media monitoring, media protection and traffic control.

Read our press release Net Insight simplifies IP media adoption with advanced ST 2110 functions

Winning more shares in the important US market

Developing our IP presence with new, advanced 2110 functions plays an important role in strengthening our market position, especially in the US market, which is dominated by leading customers who transitioned early to IP and cloud based media flows. These include service providers and some of the world’s largest broadcasters. Over the past year, we have worked systematically on developing our organization in the US with new competencies and resources, primarily in the area of IP, to promote continued growth in this key media market.

This is completely unique to Net Insight’s solution. The results of our algorithms that we are currently developing in collaboration with our customers in their networks are very promising and provide us with valuable competitive advantage.

Focus on IP and innovation at IBC

The annual International Broadcasting Convention (IBC) will soon kick off in Amsterdam. There is great interest in the event, and I look forward to meeting our customers and partners again and forging new contacts. This year we’ll focus even more on valuable meetings in our meeting room, which is designed as a live sports studio. This gives us a fantastic opportunity to spend exclusive time with our customers in a central but separate space at the event. There we’ll present our latest demos about Nimbra Edge, IP Media Trust Boundary and new launches in ST 2110 and JPEG XS. Read more about Net Insight’s demos at IBC here.

We are privileged to be involved in three Accelerator projects again this year, and to take part in the IBC showcase Accelerator Media Innovation Programme, which was created in 2019 and quickly became extremely popular both with visitors and selected companies. Its aim is to fast-track innovative solutions for complex technical and business challenges faced by the media industry.

Read more about Accelerator here

Watch video here

Persistence pays off

As autumn approaches, we have many exciting IP and cloud initiatives under way. One of Net Insight’s strengths is our persistence. We have a clear strategy which we adhere to closely and follow up on continuously to ensure we deliver on our promises. This pays off in the long run, and the results can be seen in the form of new deals, partnerships and launches.

Crister Fritzson, CEO Net Insight

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