ppt version - Destiny Media Technologies

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February
2016
1
This presentation may contain forward-looking statements that reflect current
views with respect to future events and operating performance. Any such
statements are subject to risks and uncertainties that could cause actual results
to differ materially from those projected in these forward-looking statements. For
more information on the Company's risks and uncertainties relating to those
forward-looking statements, please refer to Destiny Media Technologies Quarterly
report ending Nov 30, 2015 risk factors section, which is available on
www.sedar.com.
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Corporate Overview
Secure, automated distribution of audio and video content online
Founded: 1991
Head Office: Vancouver Canada
Simple and Secure way of
delivering video to internet devices
Secure electronic delivery of music
to radio stations before it is
available for sale
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Investment Merits
Clipstream® is a disruptive video encoding technology – New technology has the potential to
change the way video is delivered to devices over the internet.
Play MPE® has become music industry standard - Agreements with all of the major labels, 1,000
independents, and a global pricing agreement, the music industry is increasingly standardizing on
Play MPE.
Solid portfolio of intellectual property
“Capital light” business model – Positive free cash flow generation
Business model with significant earnings leverage - Business model requires limited growth capital
and is expected to produce >70% incremental profit margin
Nearing inflection point in the growth curve - Clipstream is expected to begin contributing to new
revenue in the next year. A further $35 million annual recurring revenue opportunity is available to
Play MPE. Revenue growth is expected to resume at a robust pace over the next 3-5 years.
4
Clipstream® - Industry Background
No common Standard for Video Creates Opportunity for Destiny Media
Steve Job’s Open Letter on Flash
Consequences
Rather than use Flash, Apple has
adopted HTML5, CSS and JavaScript –
all open standards. Apple’s mobile
devices all ship with high performance,
low power implementations of these
open standards. HTML5, the new web
standard that has been adopted by
Apple, Google and many others, lets
web developers create advanced
graphics, typography, animations and
transitions without relying on third party
browser plug-ins (like Flash).
Adobe will not support Mobile
Video does not play everywhere
Added cost and complexity
Proliferation of video codecs
Steve Jobs
April, 2010
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Clipstream® - Disruptive to Multi-Billion Industry
Transcoding
$1.6bn
annually
Content Delivery Networks
$12bn
Annually
by 2019
Source: CDN current market estimate from RnR Market
Research. Transcoding estimate for 2014 from a 2007
report by Frost & Sullivan
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Clipstream®
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Play MPE® - Developing Industry Standard
Play MPE® is a secure distribution system record labels use to
deliver pre-release content through the internet to Radio Stations,
music journalists, DJs, and other music Industry professionals.
The content is protected by proprietary patented locking and
watermarking technology.
Content Creators
Music Industry Participants
Radio Stations
Music Journalists
> 1,000
Independent
Labels
Music DJs
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Play MPE® - Value Proposition
Allows digital content owners to
seamlessly distribute and control data
to respective audience
Target end-users including radio, press,
industry professionals, internal staff,
DJs, film and TV, sports stadiums, VIPs
and more
Play MPE® Benefits

Encrypted lossless format

Lower cost than physical distribution

Proprietary digital watermark (forensic trace)

Proprietary locking

Instant distribution

Real-time reporting
Used by recording industry globally (over
1,000 labels)
Custom player software available for
Windows, Mac OS and iOS, with Android,
Blackberry and tablet apps coming soon
Integrated with Clear Channel's Reporting
& Scheduling systems, BBC Radio and
Sirius XM, Shazam
Market Size (in millions)
$4
$40 million
$20
opportunity
$36
Current
Addressable
Not Addressable
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Investment Merits
Clipstream® is a disruptive video encoding
technology – New technology has the potential to
change the way video is delivered to devices over the
internet.
Play MPE® has become music industry standard Agreements with all of the major labels, 1,000
independents, and a global pricing agreement, the
music industry is increasingly standardizing on
Play MPE.
Solid portfolio of intellectual property - Clear
technology leadership with four patents granted and
seven pending.
Destiny Media Technologies
(TSX:DSY OTC:DSNY)
Recent Price (02/09/16)
$0.19
52-Week Range
$0.15 - $.76
Fiscal Year End
August
Shares Outstanding
Ave. Trading Volume
Insider Ownership
55M
34,000
26%
Market Capitalization
Cash & Equivalents
$10.5M
$640k
Long Term Debt
$10k
Annual Revenue
$3.3M
“Capital light” business model - with $1M in cash, no debt and positive free cash flow generation
Business model with significant earnings leverage - Business model requires limited growth capital
and is expected to produce >70% incremental profit margin
Nearing inflection point in the growth curve - Clipstream is expected to begin contributing to new
revenue in the next year. A further $35 million annual recurring revenue opportunity is available to Play
MPE. Revenue growth is expected to resume at a robust pace over the next 3-5 years.
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Notes
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Contact
Destiny Media Technologies, Inc.
1110 - 885 W Georgia St
Vancouver, BC, Canada
V6C 3E8
North America: 1-800-8-DESTINY
International: (00) 800-4752-9673
Local: (604) 609-7736
Fax: (604) 609-0611
http://www.dsny.com
DSNY-OTCQX, DSY-TSXV, DME-Frankfurt
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