Wave Systems Corp. (fka WAVXQ)

[barge]

Zen--TVtonic is ALL about Subscriber Management and TPMs. S. Sprague is very clear about this. I suggest reading the underscored lines in the context of VISTA ULTIMATE requiring TPMs and being driven as a comsumer play through the use of cutting edge premium Entertainment.

http://www.unclever.com/wavx/WAVX1Q05.htm

SKS: So if I look at both of those, today we're very close to having the eSign team completely funded off of their last transaction, in their day to day activities. They're not generating costs for us. WaveXpress generates about a third of their costs in revenue in the marketplace today. I mean we're down to talking about four or five people or six people who are pursuing an avenue of business that lays the foundation for what we think are very broad markets. I think that for example subscriber management in media business using Trusted Platform Modules is probably one of the biggest spaces in this market. Secondly, by offering a solution today with WaveXpress to the Media Center PCs, I can go and approach the companies that supply Media Center PCs and offer them a solution where – here's how content and Trusted Platforms touch together – and the first example of consumer implementation, where we can protect consumer's identity and provide them with better security for a simple payment.



So it offers us tremendous differentiation in the market versus being an only enterprise software company. So from a competitive perspective we're able to offer a PC manufacturer not only a consumer solution but also their business solution, and ultimately hopefully fill the piece in the middle, which is the general purpose consumer PC, which still represents half of all the PCs shipping in the marketplace.

http://www.unclever.com/wavx/WAVX3Q05.htm

As it relates to WaveXpress we continue our development as it relates to the Windows Media platforms. The technology is also running now on Internet Explorer. Anybody who has a broadband connection can go download the TVTonic client application, and you can see there's a whole range of different content services now that you can subscribe to. Today it's an advertising supported service, but behind that engine are two very interesting things. One is the video capability that we think is a very powerful merchandizing engine. And the second is the beginning aspects of subscriber management and services. It's a little early on in that side. We've been, we've tried to keep our expenses there very much under control. We're not trying to compete with the major brands in the video space, because we think we can go add this functionality to the vast majority of shipping Trusted Computing devices and really build volume in the marketplace. So, the capabilities of WaveXpress in understanding and developing the subscriber management capabilities and tools and payment tools is really a very powerful solution to Wave.

In many aspects it's a little bit premature for our strategy in the market in that we're really not pursuing a () consumer opportunity today, but it's such a tremendous consumer application that keeping it moving along, keeping it part of the Windows Operating System platform is clearly going to be connected into the living room. The fact that every XBox-360 comes as a Media Center extender that allows content that's delivered by WaveXpress to play on your TV set in another room in that house, I think has some very interesting implications. I believe and this has been true since the beginning of Wave, that the best content will be content that you want to pay for. And so ultimately that means a subscriber relationship. And it's where the vast majority of dollars are in the household today in media are that subscriber relationship between the household and the media that the household consumes. So if the PC is going to play an important role in that, if we believe that the consumer platform of the internet is going to play an important role, then Trusted Computing is clearly going to be a capability for strong authentication in that and WaveXpress gives us a toehold in that market to participate, whether long-term or a service provider or not, I think it's way too early to tell.

I think it's very important for us however to have experience in understanding the advertising models, the subscription models, the content relationships, dealing with different studios, etc.,to really be part of the ecosystem on that. We're targeting on the Windows Media platform which is kind of at the other end of the spectrum, you know if consumer is in the middle and business is all the way at one end, Windows Media Center is all the way at the other end. So it's a lower volume platform. It allows us to get our hands and feet dirty. Again we're not trying to be the number one brand in that space. Let's go figure out how to be a subscriber manager in that space.