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PwC Up front | Issue 5 | Harnessing technology

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Page 12 of 55

Up front Summer 2014 11 The results In an age when new means of delivering information are surfacing at a bewildering rate, Stingray's server-to-server model seems almost quaint, but it has the virtue of extreme security. "In terms of fraud or hacking situations, that's just never happened," Péloquin says. Another advantage is that Stingray is primarily a business-to-business enterprise, dealing on one end with established music labels and on the other with large cable, satellite or Internet Protocol Television (IPTV) providers like Bell Canada and AT&T. That model in itself ensures a level of security. Of course, virtually anything today can be pirated once it's broadcast, and the very notion of copyright is under assault, but Stingray has so far seen little unauthorized use of its content, except, perhaps, on YouTube, Péloquin notes. The future Stingray believes that reports of the death of TV are greatly exaggerated, but it is addressing the growing fragmentation in consumer habits by making its products available on platforms like Android and iOS. Still, the secure pay TV model is a seductive one. "Eighty-five per cent of the Canadian population has access to pay TV," Péloquin says. "If you look at markets like Latin America, 35 per cent of the population has access to pay TV, and it's growing in double digits. Three or four years ago, it was the thing to have a mobile or smartphone, but today, especially with the soccer World Cup, it's to have cable and a wide-screen TV in your living room. So we're forgetting that countries like Canada or the U.S. are coming to maturity in terms of TV – there are a lot of markets around the world where it's still growing." Stingray plans to meet that demand with secure content. Uf We upload all of the playlists in a very secure, closed environment – we're not streaming through the cloud or using a satellite signal. Mathieu Péloquin Senior Vice-President of Marketing and Communications, Stingray Digital Challenges | Risk The Stingray Digital team.

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