The product is designed to allow content producers and distributors to manage their digital media across a wide variety of platforms and has been endorsed by several industry leaders including:
The CEO of the MPAA, Senator Dodd. Former president Bill Clinton Former Secretary of State Madeline Albright The Managing Editor at Sony Pictures Entertainment
What follows is an analysis of Clov stock and its business model based on information available from the company’s public website as of 19 May 2011.
Overview of Company Activities:
A clove is security software designed to manage access to digital content such as movies purchased via iTunes, Amazon, or other online retailers. Content owners using Clov can also control how their media is distributed between different media formats such as Blu-ray, DVD, and iPod.
Clov was founded in 2010 by a team of highly experienced software entrepreneurs and has received funding from several undisclosed private sources. The company also has some political support as evidenced by endorsement from Senator Dodd who is the former chairman and CEO of the MPAA.
Clov stock is a software system that allows content producers and distributors to manage, track, and distribute their digital media. Clove has been designed with different modules for each of these functions:
– Content Production: Allows studios and other content producers to store and track their media in the cloud and set distribution control per format and region.
– Content Distribution: Provides a secure platform for digital distribution that allows content producers to control the release of their media in different formats per region and mandates that any copy is watermarked with the producer’s name, logo, and so on.
– Content Playback: Allows users to access content via all common platforms such as iPhone, iPod, laptop, and so on. Clov also provides a built-in media store where users can purchase content directly from the producers’ website rather than through Apple’s iTunes Store which takes 30% of revenue generated.
Business Model Risk Factors:
– Cloud Computing is Undergoing Major Changes. The cloud computing market has undergone significant changes over the past few months. Roxio’s recent purchase of Livedrive, Google’s introduction of “Drive”, and Microsoft’s launch of Azure all indicate that cloud computing is going through a period of consolidation and maturation where early-stage companies may no longer be able to compete.
– Clov Stock Faces Competition From Major Players. Clov is entering a market that is already populated by major companies such as Apple and Amazon. While the company provides an interesting alternative to these companies, it still faces significant challenges in enticing consumers and content producers alike to adopt their platform over existing major players.
– Company Earnings Not Yet Public. For investors to accurately assess the value of Clov stock, they first need to be able to look at the company’s earnings. However, since the company is only a one-year-old private venture capital-backed startup, its earnings are not yet public and can therefore neither be confirmed nor denied.