Sonic Ignites DVD-On-Demand Industry

Qflix-Ready Products Define New Entertainment Sell-through Businesses; Enable Companies to Apply Approved CSS-Recordable Format

September 27, 2007 — Sonic Solutions® (NASDAQ: SNIC), announced today its technologies and intellectual property are behind a range of products being introduced to establish new businesses for the digital distribution of video entertainment that can be burned on demand to protected discs. Sonic’s DVD On Demand software platform and Qflix recordable CSS program - based on the recently approved industry specifications for recording electronic downloads set by the DVD Copy Control Association (DVD CCA) - are being used in new products from DVD media makers, optical drive manufacturers, retail kiosk vendors, and duplication system suppliers. These products, combined with services and solutions being delivered by additional Sonic partners in the consumer electronics, entertainment distribution, and PC industries provide content owners new, secure platforms to digitally distribute their broad entertainment catalogs.

A veritable who’s who of companies are using Sonic technologies to release new electronic sell-through components and solutions for retail, factory, and home implementation beginning next month and accelerating through the end of the year. Playing an important role in home deployment will be Dell, which is partnering with Sonic on the Qflix technology and associated software as a new way to provide its customers with more choice as to where, when, and how they are entertained. 

Other companies providing products to allow consumers to conveniently purchase, download, and burn entertainment at home include Internet entertainment distributors, such as Akimbo and Movielink that will provide direct access to a wide selection of premium content. Consumers will be able to burn the content they download on new drives by companies such as DataPlay, Pioneer, PLDS (Philips & Lite-On Digital Solutions Corp.), Plextor, TSST (Toshiba Samsung Storage Technology Corp.), and others using special blank discs being released by Mitsubishi Kagaku Media (MKM)/Verbatim, and RITEK. In addition, Sonic is working with set-top box, networked DVD recorder, DVR manufacturers, and drive component manufacturers such as MediaTek and Sunext to bring Qflix into the living room.

At retail, companies including Lucidiom, MOD Systems, Polar Frog Digital, TitleMatch Entertainment Group, and YesVideo are releasing products solutions that, combined with the availability of licensed movie archives from studios, will provide consumers touch-screen access to vast ‘virtual video shelves’ through special movie kiosks. 

Other Sonic partners such as Allied Vaughn, Elesys, Inc., Microtech Systems, Primera Technology, and Rimage will play a key role in establishing factory systems capable of manufacturing custom discs to fulfill online orders.  Such systems will help reduce inventory costs for Internet retailers, while allowing content owners to make more of their entertainment catalogs available for purchase.

“We are extremely pleased that a universal standard has been defined by the industry and the stage finally set for the launch of new download-to-burn solutions that will provide consumers on-demand access to a wider selection of high-quality video entertainment,” said Dave Habiger, president and CEO, Sonic Solutions. “By creating a system that combines the convenience of electronic delivery with the simplicity and compatibility of DVD, we are helping the industry deliver to consumers a far greater range of content than ever before – at home, online, or at their favorite retail location.”

The rollout of DVD-On-Demand solutions marks the culmination of Sonic’s three-year cooperation with movie studios, consumer electronics manufacturers, IT companies, and content distributors to establish a solution that allows digitally distributed premium video content to be protected and recorded to optical DVD media.


About Qflix and Sonic DVD On Demand

Qflix offers a new means for content owners to release titles for custom production and sale over the Internet while maintaining the same level of copy protection used on commercially mass-produced DVDs. Sonic’s Qflix licensing program provides essential technology and IP for both the professional and consumer markets. Qflix Pro, for professional and enterprise manufacturing of DVDs “on demand,” allows production facilities to reduce the cost of carrying physical inventory while simultaneously offering extensive catalogs of content. Qflix Pro also enables retailers to broaden the number of movies by augmenting physical product with on-demand DVD creation kiosks in their stores. The consumer version of Qflix provides a long-awaited downloading and burning solution for movies and premium video content in computers and consumer electronic devices such as set-top boxes, networked DVD recorders, and DVRs.

Sonic DVD On Demand is a complete solution for custom preparation and burning of DVDs in industrial, retail, and home environments. Sonic’s Extensible Media Protection Architecture (XMPA) includes extensive Qflix support to enable secure electronic delivery and burning of video encrypted with CSS (the industry-standard Content Scramble System) to recordable DVD media.

For more information regarding the Qflix technology licensing program, please contact Qflix Licensing ( or visit (


About Sonic Solutions

Sonic Solutions (NASDAQ: SNIC; enables the creation, management, and enjoyment of digital media content through its Hollywood to Homeproducts, services, and technologies. Sonic's products range from the advanced authoring systems used to produce Hollywood DVD, HD DVD, and Blu-ray Disc film releases to the award-winning Roxio®-branded photo, video, music, and digital-media management applications. Sonic’s patented technologies and AuthorScript® media engine are relied upon by leading technology firms to define rich media experiences on a wide array of consumer electronics, mobile devices, set-top players, retail kiosks, and PCs. Always an innovator, Sonic has taken a leading role in helping professional and consumer markets make the successful transition to the new high-definition media formats and, through the DVD On Demand and Qflix platforms, Sonic is defining new models for the digital distribution of premium Hollywood entertainment. Sonic Solutions is headquartered in Marin County, California.


Forward Looking Statements

This press release may contain forward-looking statements that are based upon current expectations, including the distribution and market acceptance of Sonic DVD On Demand platform and the Qflix program. Actual results could differ materially from those projected in the forward-looking statements as a result of various risks and uncertainties, including those discussed in the Company's annual and quarterly reports on file with the Securities and Exchange Commission. This press release should be read in conjunction with the Company's most recent annual report on Form 10-K, Form 10-Q and other reports on file with the Securities and Exchange Commission, which contain a more detailed discussion of the Company's business including risks and uncertainties that may affect future results. The Company does not undertake to update any forward-looking statements.

Sonic, the Sonic logo, Sonic Solutions, AuthorScript, Hollywood to Home, Sonic DVD On Demand, Qflix, and Roxio are trademarks or registered trademarks of Sonic Solutions in the United States and/or other countries. All other company or product names are trademarks of their respective owners and, in some cases, are used by Sonic Solutions under license.


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