SOURCE: Image Protect Inc.

November 15, 2017 08:45 ET

Image Protect Points to Improved Growth Outlook, Citing Recent Research

Industry Research Suggests 530% Revenue Growth Potential for Image Protect's Core Market in Coming Years

SAN CLEMENTE, CA--(Marketwired - Nov 15, 2017) -  Image Protect Inc. (OTC PINK: IMTL) (imageprotect.com) (the "Company"), the global leader in end-to-end copyright software, points to significantly increased growth potential in the digital visual intellectual property protection market according to a new in-depth research report on the Digital Rights Management Market outlook through 2025. The research report came to light through an on-line publication by VC Reuters News Service.

Recent analysis conducted by ResearchNReports ("the Report") finds the overall cloud-based digital rights management space set to grow from $491.5 million in 2016 to just over $2.5 billion by 2025. The numbers are even more dramatic for on-premise digital rights management, which is seen growing 386.5% from present levels to a total market size of $3.7 billion.

The drivers cited in the Report's analysis broadly match those cited by Image Protect's own models: rising piracy is becoming an increasingly devastating threat to organizational bottom lines, and pervasive integration of handheld smart devices into cultural life has led to a reduced focus on IP protection among IT product developers (mass consumerization).

Moreover, the Report draws logical lines that represent near-perfect parallels to Image Protect's business model, suggesting that it may offer one possible perspective on the Company's future business trends in terms of sales, overall demand, capital availability, and return on investment.

According to the report, the U.S. Digital Rights Management market is expected to show sustainable growth during the forecast period. In terms of revenue, the U.S. market stood at $291.5 million in 2016 and is anticipated to reach just shy of $1.5 billion by 2025, which represents a massive CAGR of 19.9% over the forecast period. However, one should note that the Company has recently made significant inroads into the European market, where growth is expected to run around 19.5% over the same period, vaulting total European market size for digital rights management to an impressive $1.5 billion by 2025.

This data broadly corresponds with other recent research on the space. MarketsandMarkets estimates the overall DRM market is set to grow from roughly $1.1 billion in 2015 to 2.9 billion by 2020, at a CAGR of 22.1% over the forecast period.

Lawrence Adams, CEO of Image Protect, commented, "We believe investors are still making their way up the learning curve with this market. It's a new territory and were writing the road map to success. However, research like this may shine a light and help people understand what a massive market opportunity is out there in digital rights management."

Image Protect showed $189,687 in total net revenues from digital rights management operations for the six months ended June 30, 2017, representing a y/y growth of 40% in revenues. If one were to extrapolate a modeling of Image Protect's future sales trends based on the Report's conclusions, then it would imply an annual sales level of over $1.2 million in 2020, or more than a 6-fold increase in current sales for the company.

However, management believes even this number may significantly undershoot the mark: strong sustained sales growth is typically accompanied by improved terms and availability of new capital resources, which in turn lays a strong foundation for aggressive expansion in terms of market share.

In the end, everything comes down to demand. The Report offers a rosy outlook for the DRM space. But it isn't alone. In fact, a recent Freakonomics report tallied the total damages of online piracy, finding that it may cost the U.S. economy between $200 and $250 billion per year, and is responsible for the loss of 750,000 American jobs. That would imply online piracy costs nearly $800 for every man, woman, and child in America each year. For further information view Corporate Video, https://www.youtube.com/watch?v=9S0BBv3jt6A&t=15s

 About Image Protect

Image Protect protects and monetizes creative works. By uniting technology with a team of copyright experts, we ensure that content providers preserve the value of their digital assets. Our web application monitors the global Internet to seek and collect evidence for illegally used visual content. Then our legal partners across North America, Europe, and Asia ensure our clients receive appropriate compensation for work used without valid license.

Safe Harbor Provision

Cautionary statement for purposes of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995: Information in this news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of the Company and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the execution and performance of contracts by the Company and its customers, suppliers and partners. The Company disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise.

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