DivX-focused strategy has secured major deals with global manufacturers

6th December, 2006 - Asia Pacific market access specialists Intralink has helped global digital media software company DivX, Inc. to secure a major foothold in Japan – the world’s largest consumer electronics market.

In the three years since DivX partnered with Intralink to target this market, the US-based company has won a string of important contract wins with household names, including Pioneer, JVC, Panasonic, Sony, Sanyo, Casio and many others.

Intralink has also helped DivX move into broader electronics markets with new licensing agreements with both automotive and digital camera OEMs – helping build the company’s revenue base from near zero to a multi-million dollar business with over 30 customers in Japan.

Founded in May 2000, San Diego-based DivX has developed one of the world's most popular video technologies which now powers an entire ecosystem of interoperable products and services. The company’s software has been downloaded over 200 million times, redefining the media experience by enabling anyone to create, share and play highly-compressed, high-quality video content.

Working closely with DivX, Intralink was tasked with creating market pull for the company’s technology – while at the same time protecting their IP and licensing position.

Intralink devised a strategy which focused on securing a top brand “first adopter” to create a precedent that other manufacturers would then follow. By carefully explaining DivX’s value added proposition – based on interoperability and product quality – the company was able to secure favourable royalty terms.

Concerns over IP infringement were also addressed by Intralink, which worked closely with the DivX legal team to shape their messaging for the Japanese market. Intralink created strong relationships with technology licensees to counter issues about possible unlicensed technology in the wider market.

Intralink’s strategy – based on its Surrogate Sales Program™ – has proved so successful that DivX have established their own office in Japan to drive their business forward. According to DivX CEO Jordan Greenhall “The guys at Intralink picked up our business model and pitch and ran with it quicker than anyone could have hoped for, driving serious business along the way”.

Intralink CEO James Lawson added: “Entering – and then succeeding in – the Japanese consumer electronics market requires a disciplined and proactive approach which is highly attuned to cultural sensitivities. We have worked very closely with DivX to build strong foundations on which they are now building a significant market presence, both in the DVD and digital camera markets, and have helped provide a seamless transition to their own operations in Japan.”

About Intralink:

Established in 1990, Intralink has a proven record of achieving accelerated market access and revenue traction for venture-backed technology companies. Intralink targets the consumer electronics, communications, and enterprise solutions markets in the strategically-important Chinese and Japanese markets with a variety of technologies, including semiconductors, displays, subsystems and software. The company has offices in the UK, Tokyo, Shanghai and Shenzhen.