Sonic Foundry (SOFO) recently developed Mediasite 5.1, which is the latest release from its webcasting portfolio.
The new version of Mediasite offers enhancement to Mediasite Recorders, webcasting appliances that capture, encode and synchronize high-quality video and DVI/VGA images as rich media presentations, and the Mediasite Server that streams live and on-demand webcasts and provides centralized content management.
Through its Mediasite.com portal launched in 2005, Sonic Foundry hosts thousands of fully searchable public presentations. Major enhancements enriching Mediasite 5.1 includes New Silverlight 2.0 based Players, Enhanced tracking and reporting and In-catalog editing. The company can now customize URLs and provide automatic closed captioning facility for institutions to offer technology to users with disabilities.
We believe that Mediasite is the strongest weapon that Sonic has in its armory, which will definitely help it build market share.
Sonic Foundry’s largest industry vertical is the higher education market where it serves over 600 college and universities. We believe this is potentially a very large market for the company, as it opens up additional revenue opportunities for the learning institution that can offer the course content online as either an archived or live event.
Recently, The Wharton School of the University of Pennsylvania adopted Mediasite to deliver its online course on Economic and Financial Crises. The prestigious list of customers switching to Mediasite seems to be growing at a fast rate and offers good business potential for the company.
However, the increasing focus on Mediasite may expose the company to product concentration risk, apart from the customer concentration risk it witnessed earlier. We are becoming cautiously optimistic on the counter and continue with our Hold rating.
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