Broadcast International Announces Roadmap for Industry’s First Video Operating System

SALT LAKE CITY--(BUSINESS WIRE)--Broadcast International (OTCBB: BCST)(“BI”) today announced a roadmap for the industry’s first video operating system (VOS). The new operating system, specifically designed for handling a wide range of video capabilities, will be an extension of the company’s patented CodecSys software-based video compression engine

The key capabilities of the new VOS will be real-time transcoding, taking video in one format and translating it to another; support for multiple outputs so that the same video can be re-purposed for delivery over mobile devices, cable or the Internet; and compatibility with media management systems that enable, for example, streamlined search and access of archival video for playback and repurposing. These functions will be developed by Broadcast International or third-party developers through open APIs published by the company.

These capabilities are critical for the exploding inventory of new and archived video content -- including user-generated video -- to reach consumers across a vast range of devices, networks, and distribution channels. Transcoding is necessary to deal with the complexity caused by the scores of file formats, bit rates, screen resolutions, and audio and video codecs involved in the video distribution process. A single piece of video, for example, may need to be transcoded up to 100 times for the mobile and Internet distribution channels alone. Capabilities such as real-time transcoding are critical if video content is to become ubiquitous across all media delivery platforms.

According to Rod Tiede, CEO of Broadcast International, the company’s new VOS will provide the industry’s only comprehensive, open, software-based solution for delivering these critical video capabilities to markets including broadcast, Internet video, IPTV, mobile, satellite, and cable.

“There is a pressing need for an open, software-based solution that encompasses all of these functions, versus the single-purpose, tightly-coupled hardware/software solutions currently available,” said Tiede.

“With our video compression engine, CodecSys, we’ve shown the benefits of this approach. Aside from its breakthrough video compression performance, which allows five to seven times more video to be packed into today’s limited bandwidth, CodecSys supports nearly unlimited scalability and upgradeability. For customers, that means the elimination of costly equipment replacement cycles. With CodecSys, upgrading to a new standard such as h.264 is as easy as downloading a new piece of software.”

“Now, with our VOS, we’ll be taking those basic principles and applying them to the enormous new markets for transcoding, video re-purposing and media management. It’s a new paradigm for the video industry.”

Industry veteran Ron Bell to head up VOS effort

In a separate press release, Broadcast International announced the appointment of industry veteran Ron Bell as senior vice president and General Manager of its CodecSys Division, which includes the new VOS.

Bell is a well-known international figure in the definition, design, development and application of a wide range of technologies including microprocessors, operating systems, and networking. Bell was involved in the evolution of the UNIX operating system while serving as the General Manager of the UNIX Systems Group at Unisys and later as its Chief Technology Officer. Most recently Bell served as Chief Technology Officer at MathStar in Hillsboro, OR, as well as at Micro Linear in San Jose, CA.

User-generated video and mobile markets drive transcoding need

Much of the demand for video transcoding -- which involves decoding and recoding digital content from one format to another -- is being driven by the enormous user generated video (UGV) market, led by YouTube which uploads more than 75,000 new videos per day and streams over 100 million videos daily back to users. According to comScore, 70% of the U.S. Internet audience views streaming video each month.

Broadcasters, such as Fox Interactive ™ and CNN ™, also transcode and re-purpose high volumes of videos in dozens of different formats. The highest volume video operators have to support thousands of transcode servers each to process the backlog of videos waiting to be transcoded and re-purposed.

Mobile video – content delivered over mobile networks to wireless devices – is becoming an increasingly popular option for viewers, with more than 25 million users projected by 2011 and $1 billion in revenue, according to IDC.

Advanced functionality: meta-data tagging, event-based search, mezzanine applications

Advanced functionality such as media management capabilities are on the VOS roadmap. These capabilities include meta-data tagging, and event-based search that enable the automatic retrieval of archival video based on a particular event. In sports coverage of the Olympics, for example, broadcasters would be able to automatically retrieve appropriate archived footage when a particular country wins a medal.

For broadcast and media production facilities, media management capabilities developed specifically for high-volume, internal production environments will be supported by the VOS. Mezzanine level applications, for example, will allow broadcasters to move production quality video around their editing facilities at low bandwidths.

VOS to extend CodecSys breakthrough video compression software

Broadcast International’s new video operating system (VOS) will be an extension of the company’s patented CodecSys video compression engine. Video compression has become a key capability as accelerating demand for video, particularly HD programming, puts pressure on limited bandwidth resources. Industry experts warn that a crisis in bandwidth is looming; cable providers are under particularly intense pressure to reduce bandwidth needs, but other delivery platforms such as broadcast TV, satellite, telcos and wireless all face a similar challenge.

Broadcast International has patented the unique CodecSys approach of using multiple expert codecs rather than single, general-purpose codecs, which are used in all other video encoding solutions. By automatically switching between specialized codecs, choosing the best one for a particular frame or video sequence, CodecSys is able to reduce video bandwidth requirements more than 80% for HD video over all types of delivery platforms including broadcast, cable, IPTV, wireless and the Internet.

One of the key benefits of the CodecSys software approach is that CodecSys-based video encoders can be easily changed as standards and requirements evolve. With CodecSys, codecs can be upgraded and added through simple, cost-effective software downloads. Other commercial solutions based on embedded systems require costly, full replacement.

Multi-core processor engines accelerate the CodecSys codec-switching process and provide a programmable, scalable hardware platform that enables users to add additional processing power by simply adding extra processors.

In December, Broadcast International announced a new license agreement with IBM.

The agreement covers BI’s patented CodecSys video compression software running on the Cell Broadband Engine™ (Cell/B.E.) multi-core processor and IBM BladeCenter® QS21 server. The Cell/B.E. processor accelerates the CodecSys codec-switching process, providing a platform that is flexible and highly scalable. The combined technologies promise to change the video distribution world by making it possible for cable, satellite or IPTV providers to deliver live HDTV at compression levels four-to-six times higher than is currently possible.

About Broadcast International

Broadcast International is a leading provider of video-powered broadcast solutions, including IP, and digital satellite, Internet streaming and other types of wired/wireless network distribution. BI’s patented CodecSys software is a breakthrough, artificial intelligence-based video compression technology that cuts video bandwidth requirements more than 80% over satellite, cable, IP and wireless networks. By slashing bandwidth needs, CodecSys enables a new generation of applications such as streaming video to cell phones, and offers unprecedented price/ performance benefits for existing applications such as HD video.

Broadcast International is a public company (OTC BB: BCST) headquartered in Salt Lake City, UT. For more information go to www.brin.com and www.codecsys.com.

For more information on the bandwidth crisis caused by the video revolution, go to www.bandwidthcrisis.com.

Forward-Looking Statements

All statements in this news release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the caption "Additional Factors That May Affect Our Business" in the Company's most recent Form 10-K and 10-Q filings, and amendments thereto. In addition, we operate in a highly competitive and rapidly changing environment, and new risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise any forward-looking statement.

BladeCenter, IBM, QS21 and Power Architecture are trademarks of International Business Machines Corporation in the United States, other countries or both.

PLAYSTATION is a registered trademark and Cell Broadband Engine is a trademark of Sony Computer Entertainment, Inc., in the United States, other countries, or both and is used under license there from.