BMG Entertainment Selects Virage to Syndicate Music Videos on the Internet
Virage Platform Enables Flexible and Secure Distribution of Thousands of Music Videos to a Highly Scalable Network of Syndication Partners
SAN MATEO, CA - November 16, 2000 - Virage, Inc. [NASDAQ: VRGE], a leading provider of software products and application services that enable video for the Internet, today announced that BMG Entertainment, the music and entertainment division of Bertelsmann AG, will use the Virage Video Application Platform to syndicate music videos on the Internet. Virage will provide BMG with its SmartEncode™ services and Syndication Manager software, enabling BMG to make music videos available in streaming form to both internal and third-party syndication partners. The Virage platform will allow BMG to efficiently and securely distribute its valuable video content across the Internet.
Virage will provide BMG with an end-to-end solution for its online video content syndication initiative. In addition, BMG will utilize Akamai Technologies' content delivery network. BMG's initiative will launch this year with more than 1000 music videos, accessible to a virtually unlimited number of end users worldwide through a highly scalable network of syndication partners. The number of titles made available through this initiative will ramp up significantly, with the goal of expanding BMG's content offering to include a substantial portion of its rich video library, including rare catalog footage.
"BMG is excited to partner with Virage on this initiative," said Karl Slatoff, vice president, New Media, BMG Entertainment. "The Virage platform enables us to bring highly compelling content to a vast number of music fans in an innovative and efficient way. The flexibility, security and control provided by the Virage Syndication Manager gives BMG the capability to deliver a superior content service to an open syndication network of media and entertainment web sites."
"We are very pleased that BMG has selected the Virage Video Application Platform to bring its valuable collection of music videos to the Internet," said Paul Lego, chairman and CEO of Virage. "This ground-breaking initiative demonstrates that, given the proper syndication management tools, streaming media can enable real business opportunities for content providers. The Virage platform provides BMG with the flexibility, security, and most importantly, the control required to maximize the value of their extremely popular videos on the Internet."
Virage is providing BMG with its full-featured Syndication Manager, which is built on the company's flexible and scalable Application Platform and is enabled by the Virage SmartEncode process. The Virage Syndication Manager allows the content owner to classify content into "packages" and then assign them to any number of distribution affiliates. The content owner gains complete control over digital content security and usage by setting rules for how and when the content can be played by each affiliate. As with all other Virage solutions, content can be delivered automatically in any number of formats and bitrates.
"The combination of Virage's advanced content management applications and Akamai's high-performance streaming delivery network create an ideal platform for BMG to leverage its valuable media assets with its innovative content syndication service," said Paul Campbell, vice president, streaming media services, Akamai.
About BMG
BMG Entertainment is the $4.7 billion worldwide music and entertainment division of Bertelsmann AG, one of the world's leading media companies, with annual revenues of $17.6 billion. BMG owns more than 200 record labels in 54 countries, including Arista Records, RCA Music Group and Ariola. BMG has been a leader in using the Internet to bring fans closer to their favorite artists. In addition to establishing GetMusic, an online content and commerce joint venture, BMG's online presence includes more than 30 wholly owned music & lifestyle Web sites around the world, and strategic marketing agreements with and key investments in leading online companies ARTISTdirect, Riffage.com, Egreetings Network, FanGlobe, Listen.com and Eritmo.com, among others. BMG also owns one of the world's largest music publishing companies, one of the world's leading compact disc and cassette manufacturing companies, and the world's largest music membership service, BMG Music Service, whose BMGMusicService.com consistently ranks within the Top 10 e-commerce sites. Bertelsmann's North America interests also include the Random House Inc. book publishing group; and the Gruner + Jahr magazine publishing group, which includes McCall's, Parents, Family Circle and YM magazines, among others.
About Virage, Inc.
Headquartered in San Mateo, California, Virage is the leading provider of solutions that enable video for strategic online applications. The Virage Video Application Platform transforms video into an effective online medium that is easy to publish, manage and distribute on the Internet or corporate intranets. The Virage platform provides content owners with the complete infrastructure for seamlessly integrating streaming video into business, entertainment and information applications. From ABC to Yahoo! over 180 customers across a broad range of markets have turned to Virage to help them improve production efficiencies and create new revenue opportunities with video. Contact Virage at http://www.virage.com/ or (650) 573-3210.
This press release contains "forward looking" statements about the products and services of Virage and BMG Entertainment, as that term is used in Section 21E of the Securities Exchange Act of 1934. Forward looking statements are denoted by such words as "will allow","will use", "will provide", "will ramp up" and similar terms and phrases. These types of statements address matters that are subject to risks and uncertainties which could cause actual results to differ materially. In addition, our forward-looking statements should be considered in the context of other risk factors discussed in our filings with the Securities and Exchange Commission, including our Registration Statement on Form S-1, as amended, available online at www.sec.gov. All forward looking statements are based on information available to the company on the date hereof, and the company assumes no obligation to update such statements.
Virage, VideoLogger and the Virage logo are registered trademarks, and SmartEncode are trademarks of Virage, Inc. Other company product and service names may be trademarks or service marks of others, and are hereby acknowledged.
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