The online movie market is predicted to reach $4.4 billion by the year 2017, with one of the major growth factors being the increase in internet downloads. This is in stark contrast to the DVD rental industry, which showed rapid decline in 2012, as technology and online rentals replace instore video content rentals. The download-to-own segment of the digital retail market represents the majority of annual online movie revenues, and analysts predict consumers are moving toward a speedy transition to online movie rentals.

1. What Ever Happened to DVDs?
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information used in preparing these materials are from sources we believe to be accurate, or reasonably estimated, however Duvon Corporation has not
made any investigation into the accuracy of these sources. Duvon Corporation does not intend for these marketing materials to be a substitute for
appropriate due diligence investigations. Duvon Corporation, or its agents, and/or affiliates make(s) no further warranties, express or implied, for any reason
or purpose to any party in possession of these marketing materials.
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2. 1
The Days of DVD Rentals are Over
The online movie market is predicted to reach $4.4 billion by the year 2017,
with one of the major growth factors being the increase in internet “We expect DVD
downloads.1 This is in stark contrast to the DVD rental industry, which subscribers to
showed rapid decline in 2012, as technology and online rentals replace in- decline steadily for
store video content rentals.2 The download-to-own segment of the digital every quarter,
retail market represents the majority of annual online movie revenues, and forever.”
analysts predict consumers are moving toward a speedy transition to online Reed Hastings
movie rentals.
CEO, Netflix
In fact, consumers now spend more time watching professionally produced
internet video than viewing DVDs/Blu-Ray Discs, video on demand or live premium cable. It
seems that even though consumers feel that the issues often experienced with streaming create
an inferior viewing experience, 48 percent of consumers have actually increased their streaming
activity. Because of its convenience and cost-effectiveness, researchers predict that internet
video streaming will rise significantly in the future. 3
1
Global Industry Analysts, Inc., April 2012
2
IBISWorld.com, December 2012
3
Cisco Internet Business Solutions Group, 2012

3. 2
Media Management Brings Movies Home Instantly
Duvon Corporation is poised to answer the growing consumer demand for digital content
consumption and for the comfort and convenience provided by online video content rental and
purchase. Additionally, Duvon's Media Management System eliminates the problems that
consumers associate with streaming. Duvon’s proprietary system allows users to quickly and
easily rent video content from a provider without requiring the user to stream the content.
Based on a subscription agreement, the user can select and download a predetermined number
of movies to a small media device kept at their home or office using a web and/or mobile app,
and watch them at their leisure. The Media Management System is a complete entertainment
manager that gives users a centralized hub for all of their digital media, including music, video,
photos, e-books and more. Through the Media Management System linked to a content
provider, the user can select content to be added to their digital queue for viewing anytime,
anywhere.
The Media Management System allows content providers to offer subscribers all of the
advantages of renting video content in a controlled digital environment. Subscribers can go to
their virtual video store, add selections to their watch list and, based on their subscription
agreement, receive delivery of a certain number of media files to their Media Management
Device. When the user has completed their viewing session,
they can remove the files from the device, triggering the next “For all of the apparent
item on the watch list to move to the queue. convenience of renting a movie via
the Web, there are a surprising
Bandwidth Issues Frustrate Consumers number of drawbacks. For
example, when you rent a digital
version, you often have only 24
Although there are clear advantages to online media
hours to finish watching it, which
distribution, there are also limitations to overcome. In the US,
broadband connectivity has skyrocketed from 20% a few years makes no sense. Do these
ago, to 78% in 2011.4 Bandwidth speed must be high to view companies really expect us to rent
data in real time, however. When media providers limit users the same movie again tomorrow
to streaming the media at the time of rental directly from the night if we can’t finish it tonight? In
provider’s site, it can result in buffering delays, other viewing the DVD days, a Blockbuster rental
interruptions and limited play features. was three days. Why should online
rentals be any different?”
The Media Management System addresses these problems by David Pogue
allowing users to accommodate their home bandwidth needs
Scientific American™
by scheduling media delivery for convenient times that won’t
August 2012
4
Global Industry Analysts, Inc., April 2012

4. 3
interfere with their internet use. Additionally, once media is in the queue on the Media Device,
viewing quality is greatly improved because it is viewed over the local network, eliminating
buffering or other interruption, while convenient play features enhance the experience.
Choice and Mobility Rule
Another advantage of the Media Management System over single-movie streaming is that the
device is designed to host multiple titles on the device at any given time. This method of
"queuing" the media eliminates some of the biggest problems with the streaming of video
content. Since the media is hosted on the Media Device, users don't need to worry about
bandwidth limitations while other people are using the internet, poor video quality due to
buffering, or any of the problems with fast-forward,
pause, rewind and restart. Queuing also eliminates the
“Streaming movies offers
issues of stopping a movie from a streaming service and
instant gratification: no
wishing to restart it at a later time.
waiting, no driving – plus
In addition to allowing users to choose multiple movies great portability: you can
to queue up on their device, the Media Management watch on gadgets too small
System also allows them to access their rental or for a DVD drive, like
purchased content from anywhere via internet
phones, tablets and super
connection. It also allows content to be viewed
thin laptops.”
simultaneously on multiple devices and different movies
David Pogue
to be viewed at the same time – keeping the whole
family entertained. The Media Manager can be accessed Scientific American™
and managed remotely from anywhere, giving the user August 2012
complete freedom and convenience.
Research shows that consumers are willing to pay for secure, enhanced video delivery. They are
much more likely to pay for the ability to watch content when and where they want, without the
technical glitches associated with streaming over the internet. Those studied also indicated a
willingness to pay for the latest releases and advertising-free viewing.5 The Media Management
System provides the delivery method necessary for media providers to reach consumers with
the services they value most.
5
Cisco Internet Business Solutions Group, April 2012

5. 4
Security for Provider and Consumer
Clearly, another vital consideration when talking about media content distribution is security.
Duvon’s patent-pending technology ensures that all of the video rental content is controlled
remotely by the content provider, and the queue is loaded and configured per the rental
agreement in place between the provider and the user. The provider maintains ownership of
the media, and all access rights to the content. The media is encrypted, secured and stored in a
sequestered section of the device. If a user chooses to purchase the rental content from the
media provider, it is immediately transferred from the secured storage to a secondary storage
component within the device, allowing the user to manage and access the purchased content at
their leisure. In addition, the device contains secure, private storage for all of the user’s owned
media files. This allows the user to truly create one centralized media library, accessible from
any of their devices.
Conclusion
Duvon’s Media Management System meets the consumer demand for instant gratification when
it comes to entertainment. Our technology will allow content providers to deliver media quickly
and easily to consumers, provide a superior viewing experience, and ensure security for media
throughout the process.
There is no doubt that digital media management will become a vital part of every household in
the near future, and Duvon is ready to provide a superior product and experience for media
providers and consumers alike.
For more information, please visit www.duvon.com or contact us at:
Duvon Corporation
5538 S. Eastern Avenue
Las Vegas, NV 89119
702.948.9770
info@duvon.com