A Revolutionary Wave of Internet-Data Analytics - PeerLogix (OTC PINK: LOGX)

BEND, OR / ACCESSWIRE / March 28, 2017 / PeerLogix (OTC PINK: LOGX) Do you watch content on the internet? Of course you do, just like everyone else. And anyone who streams or downloads a movie, song, TV show, e-book, or video game, basically has two choices from which to receive the desired content. The first option is to use a fee-based content distribution platform such as iTunes, Hulu, or Netflix. The second option is to use a free peer-to-peer file sharing platform such as Popcorn Time or Stremio. These two methods of on-demand streaming are collectively referred to as Over-the-Top ("OTT").

The advent of OTT has changed consumer behavior in two fundamental ways. First, consumers no longer need a cable box to access television shows or movies. There's now an endless list of devices and mobile applications that deliver free or subscribed content to any mobile device or smart TV.

Second, thanks to OTT consumers are far less willing to wait for a scheduled airing in order to enjoy their desired content. Everybody reading this article probably remembers a time when watching Friends actually required waiting for the show to run every Thursday at 8pm, and buying a book meant taking a drive to Boarders.

Fast forward to 2017, and consumers can get nearly any kind of media they want with a swipe of the finger. Gratification can no longer be delayed. That's why MarketsandMarkets estimates the OTT market will to grow to $62.03 Billion by 2020, implying a CAGR of 17.2%.

PeerLogix presents an opportunity for investors to get in early and play OTT growth. PeerLogix has created a proprietary method for collecting and analyzing consumer data, acquired from peer-to-peer OTT sources. The company is able to aggregate data from approximately 130-150 million people worldwide who are sharing TV shows, movies, music, video games and software. Peer-to-Peer file sharing represents one of the most significant categories of global Internet usage, comprising up to 22% of all Internet traffic.

PeerLogix has been amassing peer-to-peer data since January of 2014, and now possesses an expansive library of over 2 Billion OTT media downloads, from approximately 150 million households around the world. The captured data does not personally identify the consumer in any way, but instead conveys the consumer's IP address, the name and genre of the media being consumed, and the approximate location where the consumption is occurring. This data is then overlaid with various third-party data bases containing behavioral and demographic information, and run through PeerLogix' proprietary analytics.

So how will PeerLogix monetize its database and analytic platform?

There are basically two ways. The first and quickest path to monetization requires PeerLogix to sell its data to other data management platforms ("DMP"). These DMP's act as data repositories, that rent the data to interested third parties.

For example, assume Amazon.com wants to unload excess inventory of the, "40 Year Old Virgin" DVD's. Amazon would likely task its advertising agency with running a targeted marketing campaign for the promotion. That advertising agency would probably start by contacting a DMP to pull all of the actuarial data on the audience most likely to purchase the DVD, and where those eyes can most readily be found. The DMP would supply the data to the advertising agency, and the agency would then use the data to create a campaign and to decide where and how to run the ads.

Currently, there are just a small handful of major DMP companies in the world, and that exclusive list includes Oracle, SalesForce, Lotame, and Adobe. PeerLogix has deals pending with a couple of these heavyweights and it stands to reason they'll consummate one or more of these transactions in the near future as their business development efforts begin to take hold.

The DMP's will compensate PeerLogix based on a set number of impressions (or views) generated as the result of their data.

The second way PeerLogix can monetize its database, is by integrating directly with an end user (like Amazon or Facebook). Once the PeerLogix technology is integrated with the client, the client can create targeted ads and even customize web home pages and mobile apps, based on each user's preference, without having to contact a DMP.

For example, if the NFL were to integrate PeerLogix technology into its mobile app backend, the NFL mobile app would know, for instance, that a specific user downloaded several videos about Las Vegas Raider's quarterback Derek Carr, and subsequently provide in-app ads based on that consumption history.

This use case is extremely compelling, but requires a longer sales cycle because integrating an analytical database with a native mobile application (or website), takes time. But it presents a very enticing opportunity for future growth.

Disruptive Technology and Competitive Advantage

Currently, the industry standard for creating predictive analysis for sales and marketing is based on search engine data from keyword searches. The problem is, this data only reflects user curiosity. Just because a consumer Googles "best movie for a 6-year-old boy", doesn't necessarily mean that the user is actually looking to download or watch a movie, nor does it mean that the user actually has a 6-year-old male child. But if a consumer actually streams or downloads a movie that is predominantly geared toward a 6-year-old male audience, the conclusions that can be drawn from that data are far more instructive. That's precisely why the OTT data captured by PeerLogix is so compelling. It reflects actual content consumption instead of mere curiosity.

PeerLogix' OTT analytics has two additional competitive advantages over standard search-based analytics. First, the Company collects OTT data from users around the world, which enables PeerLogix to measure specific consumer preferences in most countries both small and large. Conversely, most search-based analytics are confined to pre-determined major market areas.

Second, PeerLogix' proprietary algorithm is able to geo-locate each user, which makes the data scalable down to a neighborhood block. From both a macro and micro perspective, the OTT data used by PeerLogix will be far more accurate and actionable than standard search-based analytics.

The Company has also filed a patent application, including a secondary continuation-in-part patent, on its proprietary tracking technology and business applications.

In addition to the Company's patent portfolio, the Company's proprietary database contains 36 months of media consumption that cannot be acquired or recreated by new market entrants. Any potential competitor will have to build their own database from scratch, which takes time, no matter how large the potential competitor may be.

If OTT becomes the new gold standard for consumer analytics, we believe PeerLogix is positioned to become a market leader.

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SOURCE: Sylva International, LLC

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