As Rich Media Volume Grows, Entertainment Companies Need a More Gradual, Practical Approach to Managing Their Digital Assets

Sonic Foundry, Inc. (NASDAQ: SOFO)

Rimas Buinevicius, Chairman & CEO, rich media expert

With roots forged in recording studios and the largest entertainment companies in the industry, Sonic Foundry has watched as "content management" companies rushed to offer "end-to-end" solutions that have been extremely expensive and failed to meet stated expectations. Failing to respect the legacy of many large organizations that now face an avalanche of digital data, many technology providers have pushed a utopian approach for managing electronic media that calls for an all-or-nothing strategy. Similar to the commitment needed to implement a corporate ERP system, this unproven approach has many organizations looking for a more prudent, phased-in process for leveraging the value of their electronic media.

Buinevicius sees three successful trends within the entertainment industry:

1. Continue to maintain current data management systems before embarking on a total overhaul of the technologies used to create, deliver and store digital media.
2. Start using more advanced technologies on short-form, less data-intensive projects — such as brief trailers and promotions for the movie industry.
3. Look for ways to transform digital content into high-value "rich media" content — by having the ability to easily and quickly retrieve and re-use data for multiple applications.

Sonic Foundry has set the standard for audio and video production and content management through the development of such products as Sound Forge[R], ACID[TM] and Vegas[R] Video. All of these products help create, deliver and manage world-class rich media content. With its heritage of enabling entertainment companies to leverage the full potential of their digital assets, Sonic Foundry is using its extensive experience to help customers develop a "digital roadmap" that becomes the core strategy for its rich media initiatives.

Executives are available for individual briefings and/or demonstrations prior to or at the up-coming National Association of Broadcasters (NAB) trade show in Las Vegas, April 8-11, 2002. In addition, the company will be offering a white paper outlining these trends, its strategy and industry findings in more detail. Copies can be obtained at Sonic Foundry's Booth #S6737 at NAB, located in the Sands Convention Center, or by contacting Terri Douglas or Guy Murrel, Catapult PR-IR at the contact information below.

For more information about Sonic Foundry's suggested approach to rich media management and to schedule an interview with Sonic Foundry, contact: