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PwC Up front | Issue 5 | Harnessing technology

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10 Up front Summer 2014 The challenge If you've ventured into the upper channels of your cable TV subscription, you've likely tuned in to Galaxie, the popular music service programmed and supplied by Montreal-based Stingray Digital Group. The company's own numbers show that when we aren't watching television, we enjoy listening to music on it. But in an era when the music industry itself is being reshaped, and the cable industry is contending with free streaming sites like YouTube and subscription services such as Netflix, Stingray not only has to deal with the competition, but also with questions of whether its licensed content remains secure. That challenge has led it to develop a risk-resilience plan that's equal parts advanced technology and old-school proprietorship. The strategy "Music everywhere," says Senior Vice-President of Marketing and Communications Mathieu Péloquin of Stingray's growth strategy. That ambitious approach has put musical programming curated and licensed by Stingray into 113 countries and 105 million cable TV-equipped households worldwide. Besides Galaxie, the company's offerings include the Karaoke Channel, Concert TV, Music Choice in Europe and, thanks to a recent acquisition, Mood Media in Latin America. To manage most of the digital products it sends out across the globe, however, Stingray employs a much narrower focus. The key to protecting its musical programming is the company's proprietary server technology, UbiquiCAST. That name might Behind the music Cable-based Stingray Digital plays DJ for a global audience – while keeping its content secure with proprietary technology By Christopher Korchin suggest a product that's available to one and all, but it's actually a method of maintaining tight control through a closed connection between Stingray's IT department in Montreal and its own servers, which are installed on-site at various broadcasters' headquarters around the world. Content is uploaded to each UbiquiCAST server over a secure virtual private network. "We have 24-7 contact with those servers," Péloquin says. "We upload all of the playlists in a very secure, closed environment – we're not streaming through the cloud or using a satellite signal." Challenges | Risk

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