SOURCE:; Infosmart Group, Inc.; USA Video Interactive Corp; Internap Network Services Corporation

April 17, 2007 09:00 ET

DVD Growth in Brazil, Advances in Streaming Video and High Definition Formats Create Digital Media Market Opportunities

Industry Participants Internap, Netflix, Infosmart and USA Video Interactive Positioned for Continued Market Penetration Across Hardware, Content, and Storage Segments

POINT ROBERTS, WA and DELTA, BC -- (MARKET WIRE) -- April 17, 2007, an investor and industry news portal for the digital media sector, reports on key growth areas within the digital media industry in DVD, high definition and streaming video. Infosmart Group, Inc. (OTCBB: IFSG), a global DVDR manufacturer, is working to capitalize on the rapid growth Brazil is seeing as the DVD format is only now being adopted in this developing region. In addition, advancements in streaming video and the availability of high quality downloads has opened the doors for many players such as Internap (NASDAQ: INAP), a global provider of integrated content delivery systems and USA Video Interactive Corp. (OTCBB: USVO), provider of video-on-demand and digital watermarking anti-piracy technology.

On the content side, positioned to benefit from continued demand for DVD movies and the eventual shift to high definition, is online movie delivery company Netflix.

While the format battle continues to dominate high definition circles, many companies have found significant market opportunity for DVD and recordable DVDs in developing markets such as Brazil.

According to Justin Davis, North American representative for Infosmart Group (OTCBB: IFSG), "Right now in Brazil you have 185 million people, 60 million TVs, but only 4 million DVD players. This mirrors exactly what we saw in the U.S. 5-7 years ago when most people were utilizing VHS and began transitioning from VHS into DVD. And now in North America basically everyone is using DVDs and most likely owns one or more DVD players. Brazil is at this transition stage right now and with this market only now becoming a viable option, it creates tremendous growth potential. Infosmart Group is positioned to take advantage of this opportunity through its newly opened facility called Infosmart Discobras."

With the foothold that the existing standard continues to hold, Swasey sees DVDs continuing to dominate. Netflix's Steve Swasey, Director, Corporate Communications, states, "We are a distributor and we are going to continue to send out the formats that movie studios continue to publish in and make that available to our customers. It is however a DVD world and will continue to be for five to ten years at least for several reasons. DVDs are ubiquitous and with the advent of the HD DVD and Blu-ray, it is still the most popular way of getting entertainment today."

Thanks to high profile sites such as YouTube, streaming video has become a high growth and viable channel for content distribution that many feel could change the face of consumer entertainment through the availability of high quality downloads. The Internet has been a key contributor to the growing level of digital content now available. However, with this surge has come an escalated amount of video and movie piracy, reaching global levels exceeding $18 billion.

Patrick Gregston, Sales Manager with USA Video Interactive Corp (OTCBB: USVO), explains, "What makes the digital era different is the speed and quality of what anybody can do, so the threats are multiple, and within the means of millions and with the surge of companies now distributing and selling video content over the Internet, piracy issues have become a greater concern than ever before."

With the ability to digitally watermark content as it is being distributed over the Internet using the Company's SmartMarking technology (MediaEscort™), USVO is positioned to take advantage of this fast paced delivery channel as they secure the rights of the content producers and distributors.

Internap Network Services Corporation (NASDAQ: INAP), a provider of choice for the world's elite businesses on the Internet, through their recent acquisition of VitalStream, has extended their reach into the rich media content streaming delivery business and is turning the growing demand for online video content into a high growth business from an advertising perspective.

As described by Andrew Albrecht, Vice President, Corporate Development for Internap, "Our acquisition of VitalStream allows us to put real time ads into streaming video, targeting the ads using specific geographic and demographic information and providing reporting back to the advertisers on the number of ads that were targeted and delivered. Internap is looking to continue to develop this technology to take advantage of the growing demand for rich digital media content providing a means for monetizing digital media content through seamless, streaming and targeted advertising."

In addition to the continued strength of the DVD market and the rise in popularity of streaming video, it is difficult to deny the opportunities associated with the inevitable shift to a high definition viewing experience. Evidence that consumers are beginning to move towards high definition is seen in the rising sales of HDTVs.

In addition to the continued strength of the DVD market and the rise in popularity of streaming video, it is difficult to deny the opportunities associated with the inevitable shift to a high definition viewing experience. Evidence that consumers are beginning to move towards high definition is seen in the surging sales of HDTVs which are equipping many of today's consumers with technology to take advantage of high definition media, with expectations that this pattern will continue to grow at escalating rates.

According to Adam Thomas, Media Research Manager with Informa Telecoms & Media and author of: 'HDTV: A Global Analysis,' "We are forecasting pretty strong growth for high definition TV, with more than 150 million HDTV homes worldwide expected by the end of 2011 -- which is more than three times the number at present. The US has 28 million HD homes at the moment and we are expecting that to rise to 63 million over the next five years."

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