CCUR Holdings Inc. (CCUR)

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Concurrent (CCUR) is NIA's biggest discovery in history and NIA believes double digits will be here very quickly. There are three major technology trends that will revolutionize the pay-TV industry in 2013 and CCUR is set to be the leader of them all: ad supported video-on-demand (VOD), cloud based DVRs, and TV Everywhere (TVE).

Pay-TV companies around the globe have seen video-on-demand (VOD) use grow consistently and significantly as VOD has become a widely established and adopted service offering. 55 million U.S. homes now have access to VOD. The average U.S. home spends eight hours per month viewing VOD content. VOD transactions increased 12.8% in 2011 to 8.8 billion.

CCUR's VOD platform is powering the VOD services of 4 of the 6 largest cable TV companies in the U.S. today: Time Warner Cable (TWC): 12.3 million subscribers, Cox: 4.6 million subscribers, Charter (CHTR): 4.2 million subscribers, and Bright House: 2 million subscribers. CCUR's four major U.S. VOD clients have a total of 23.1 million subscribers, which equals 40.7% of the 56.8 million total U.S. cable video customers. On a global basis, CCUR now has a total VOD market share of 30%.

As the leader in VOD technology, CCUR is now working with service providers to usher in a new era of ad supported VOD. Soon you will see advertisements placed inside of the VOD content you watch, thanks to CCUR's innovative new VOD technology, allowing pay-TV operators to generate HUGE new revenue streams. Each video stream, whether it contains premium VOD content, time shifted TV content, or free content, represents a vehicle for inserting revenue generating advertisements that are tailored to the individual consumer.

Using CCUR's new VOD ad insertion technology, insertion of mid-roll, pre-roll and post-roll ads within VOD sessions can be directed from an external ad decision engine using SCTE interfaces and seamlessly introduced into interactive video streams by the server. This capability enables operators to insert new or replace existing advertisements in premium VOD content, free VOD content, or time shifted TV. Ad replacement features can be used to insert specific ads in time shifted TV content for targeted zones being served, eliminating the need to capture and store individual broadcast feeds for each “ad zone”.

Besides VOD technology, the biggest technology trend to revolutionize the pay-TV industry over the past decade has been DVR technology. DVR usage now accounts for 8% of Americans' TV time, up from 1.6% in 2006. The average American TV viewer now watches 24 minutes of DVR-recorded programs each day, which equals 12 hours per month. The popularity of both VOD and DVR technology shows that Americans still have a growing appetite for TV programming, as long as they can free themselves from planning their schedule around the TV broadcast schedule, and have the ability to watch programs whenever they choose. CCUR is the company that is benefiting most from the growing demand for a personalized TV viewing experience.

In 2013, cloud DVR technology will revolutionize the DVR space. Cloud DVRs will allow you to record all of your favorite programming over the cloud, without the need for a physical DVR box. The best part about Cloud DVR technology is that it will allow people to record programming using any device from any location, with the ability to play it back at any time on all screens including PCs, smart phones, and tablets. The biggest talk coming out of the Consumer Electronics Show last month was Cisco (CSCO)'s announcement of their Cloud DVR service offering: http://ces.cnet.com/8301-34435_1-57562549/cisco-adds-cloud-dvr-to-video-offering-for-cable-companies/

CCUR saw this trend coming years ago and has already won a major patent covering its Cloud DVR technology, which CCUR calls network DVR (nDVR) technology. CCUR's patented nDVR technology is foundational for nDVR services and streamlines the ability to store and deliver content from remote-storage devices. It solves the challenges of resource-allocation and management for the storage and distribution of content from a centralized, network-based system. Using factors such as demand, consumption level and timeliness of content, CCUR's technology enables automatic prioritization of resources for the ingest and delivery of content.

The pay-TV industry is rapidly shifting towards TVE technology and for TVE to become a success, nDVR services that operate as fast and smoothly as traditional DVRs are a must. Today, video distribution, storage and data access management across multiple screens are not tightly coordinated, resulting in potentially reduced network capacity or revenue generating opportunities. With the ever increasing availability of new content and recently released movies, delivering larger volumes requires technology that can intelligently manage content - and only CCUR's nDVR technology achieves this.

CCUR became the first VOD vendor to use nDVR technology when they launched a cloud based service for Time Warner Cable (TWC) called Start Over, which allows TWC subscribers to begin watching any TV program from the beginning without the need to have a physical DVR that they scheduled a recording to. CCUR also launched for TWC another similar cloud based nDVR service called Look Back, which allows TWC subscribers to switch channels and return to watching a program exactly where they left off for up to 72 hours. CCUR recently deployed both Start Over and Look Back for Bright House, making them the second U.S. pay-TV company to offer these two nDVR services over the cloud.

So far, only Cablevision (CVC) has launched a fully featured nDVR service on a very limited basis to a small group of their subscribers. Comcast (CMCSA) recently announced plans to launch their own nDVR service, calling it a "game changer" for the company. NIA believes it is very likely that TWC and Bright House will decide to soon launch fully featured nDVR services and if so, they are likely to select CCUR to deploy them, which could cause CCUR's revenues to explode in the upcoming quarters. In NIA's opinion, CCUR's two other major U.S. VOD clients Cox and CHTR are both also likely to select CCUR's nDVR technology.

CCUR's nDVR patent is #7,877,468 with the title, "Systems and methods for vertically integrated data distribution and access management." Click here for the full patent listing on the U.S. Patent and Trademark Office web site. CCUR also recently won another huge patent that will help solve the biggest problem that nDVR technology could create for the pay-TV industry. This patent is #8,079,052 with the title, "Methods, apparatuses, and systems for presenting advertisement content within trick files." Click here for the full patent listing on the U.S. Patent and Trademark Office web site.

This second new patent that CCUR recently received covers their new innovative technology that enables ad segments to be presented in nDVR as well as VOD and time-shifted TV content while trick (fast forward and rewind) functions are in progress. One of the biggest fears today is that once consumers begin widely using nDVR technology they will be able to simply fast forward through programs that they recorded over the cloud and avoid watching any TV commercials. This could kill the TV industry as we know it today, which relies heavily on advertising revenues.

When consumers fast forward or rewind nDVR, VOD, or time-shifted TV content, that functionality is called "trick mode". In order to preserve the TV advertising model as it is today, many pay-TV executives are calling for limitations to be placed on trick-mode functions, so that viewers can't skip commercials. This issue is so important that TWC filed last year and was granted a patent application for "Prevention of trick modes during digital video recorder (DVR) and network digital video recorder (nDVR) content."

If pay-TV operators enable TWC's patent pending technology, many consumers will be very unhappy about not being able to use trick mode functions to fast forward or rewind programs. CCUR's patented technology solves the concerns of the pay-TV industry and its advertisers, without the need to restrict trick mode functions. CCUR allows specialized ad content or trick mode specific ad content to be inserted into the trick file. This ad content will be presented to consumers while they are controlling the playback of their interactive video content, such as when they are fast forwarding through a commercial break while watching time-shifted TV programming.

CCUR appears positioned to lead the nDVR movement by providing operators with new opportunities for revenue generation through advanced advertising in interactive video content. CCUR will preserve advertising revenue for the industry, while powering a new multi-screen TV experience for consumers - who will no longer face the limitations of traditional DVRs.

The average DVR in use today has limited storage space and can only record one program at a time, with the ability to only play them back on a single TV. Cloud based nDVR technology will allow consumers to add infinite storage space and give them the ability to record many different programs simultaneously, with the ability to play them back on any TV in their home or on any other Internet-connected device from any location. Consumers will be able to start watching a program on one TV and then instantly fling that experience to any other TV, PC, or mobile device, to finish watching it from the same location they left off.

Besides having the ability to watch their recorded DVR content on any Internet-connected device including PCs, smartphones, and tablets, Americans demand that pay-TV operators allow them to receive the full TV viewing experience that they receive in their living room - over their mobile devices. Americans want access to all VOD content as well as live TV from any location at any time. This concept is called TV Everywhere (TVE) and TVE is the third major technology trend that will revolutionize the way consumers watch TV in 2013.

Over the past 12 months, just about every major TV network has rolled out their own TVE portal that can be accessed from the web browsers of PCs and laptops with high-speed Internet connections. Many of these same networks have also launched their own TVE apps for iOS and Android mobile devices. When consumers access a TVE portal or app they must authenticate their pay-TV subscription to gain access. Only the paying subscribers of pay-TV operators that have signed TVE transmission deals with a specific network have access rights to that network's TVE portal. Each TVE deal is different, with some only providing access through PCs and laptops, and other deals also providing access across all mobile devices.

CCUR has developed the most advanced TVE solution for pay-TV operators. CCUR's MediaHawk unified content delivery system allows operators to deliver high quality, revenue generating video, to many different screens and networks - in a simple and cost effective way. CCUR's cutting-edge MediaHawk platform allows operators to efficiently provide content to consumers across all devices in a way that ensures unparalleled video quality and service consistency.

CCUR's MediaHawk includes dynamic digital rights management (DRM) and session based policy controls, making it the world’s most capable video platform. MediaHawk is the one solution pay-TV operators need to deliver content, anywhere, anytime, to any device. CCUR eliminates the need for operators to upload and store content separately for each device, and makes it easy to service all screens using a single source content asset.

CCUR recently deployed MediaHawk for J:Com, the largest pay-TV operator in Japan, which has branded it as Xvie and provides their customers with information and access by going to: http://xvie.jcom.co.jp/ CCUR began providing its VOD solutions to J:Com several years ago. J:Com is now allowing their subscribers to access all of the same free and premium VOD content available on their TV, from their PCs, laptops, tablets and smartphones. Consumers in Japan can now access 'J:Com On Demand' video programming anywhere, anytime, on a wide range of IP connected consumer electronics devices, including Apple iPads, iPhones, and Android devices. CCUR's technology allows programs to be started on one screen, paused, and continued on any other screen, enabling seamless video viewing on-the-go.

CCUR's MediaHawk is the world’s first unified video delivery solution and just like J:Com has done, NIA believes most of CCUR's other VOD clients in the U.S., Europe, and Asia, will decide in 2013 to expand their offerings of VOD content and other programming to all screens and devices. As CCUR's many multi-billion dollar clients located across four continents decide to upgrade to CCUR's MediaHawk TVE technology throughout 2013, NIA believes CCUR's revenues and profits will absolutely skyrocket. It will be a smart investment to all of CCUR's clients that will pay off big as they tap many new TVE revenue streams.

In NIA's opinion, CCUR will shock investors by how quickly it breaks out big into double digit territory. CCUR was most likely shorted yesterday and a massive short squeeze is inevitable over the next couple of weeks. NIA sees very little downside risk, but astronomical upside potential with an enterprise value/sales ratio of only 0.77 at this time. NIA is just about 100% sure CCUR's enterprise value/revenue ratio will soon rise above 1 and remain there for good. Once CCUR breaks out into double digits, we believe these current prices will never be seen again.

NIA is not an investment advisor and is not making any target prices or financial projections. Never invest based on anything NIA says. Always do your own research and make your own investment decisions. NIA never recommends to buy or sell any stock.