AllDigital Holdings, Inc. (ADGL-OTCBB)

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July 16, 2012 Issue

The Most Powerful Name In Corporate News and Information


With Billions of Digitally Connected Devices Worldwide, AllDigital Holdings, Inc. is Right at the Epicenter of the Shift in Technology, Offering Digital Broadcasting Solutions for the Secure Transport of Digital Media to Multiple Connected Devices Simultaneously

Paul Summers
Chairman and Chief Executive Officer

Paul Summers is responsible for the overall strategy of the company and directing its growth.

Prior to AllDigital, Paul co-founded VitalStream Holdings, a leading content-delivery network with more than 1,000 clients, including Disney/ABC, Comcast and Amazon. VitalStream’s shares eventually listed on NASDAQ and it sold to Internap for more than $200 million in stock. Paul co-founded AnaServe, a privately held web-hosting company that sold to Concentric Network Corporation. He brings extensive experience from work with Merisel and AmeriQuest. Paul is an alumnus of USC.

Company Profile:

AllDigital offers digital broadcasting solutions that enable the secure transport of digital media to multiple connected devices simultaneously. For example, we provided cable subscribers of Rogers Communications, the leading cable provider in Canada, the ability to access, program and watch their shows through an iOS or Android tablet.


We primarily target content owners and enterprises that have a need to distribute their media assets and online services to a highly fragmented market of IP-enabled devices. Our state-of-the-art app frameworks, data management and integration services can ingest, store, prepare, secure, convert and deliver video-on-demand assets and live media feeds to mobile, desktop and digital televisions.

Digital Media

AllDigital Holdings, Inc.

220 Technology Dr. Suite 100
Irvine, CA 92618
Phone: 949-250-0701

ADGL-Print Version


Interview conducted by: Lynn Fosse, Senior Editor, CEOCFO Magazine, Published – July 16, 2012

CEOCFO: Mr. Summers, what is the concept behind AllDigital?

Mr. Summers: AllDigital is focused on providing digital broadcasting solutions to media and entertainment, enterprise, faith-based, government and other organizations. We specialize in taking their video assets and delivering them to a variety of devices, including Apple and Android phones and tablets.

CEOCFO: How do you implement the concept?

Mr. Summers: Basically, what we do is provide what we call “integration services,” to be able to take traditional media, which can come in the form of things like movies or live broadcasts, and convert them into formats that are compatible with a number of different connected devices, such as iPads, iPhones, desktop computers, and digital televisions.

CEOCFO: Is it one technology? In other words, you convert it and then it can be used over all of these sources, or is it dependent upon end use?

Mr. Summers: It is physically dependent on the end use and where the content owner wants to send their digital media. However, AllDigital is able to provide solutions that reach most of the major devices that support high resolution and high definition content such as movies and live television broadcasts.


One of our premier products is MobileSBRTM, which uses a custom decision matrix when an Android app starts up to determine and select the optimal stream for a video. The program automatically detects and adjusts the video settings based on the OS version and other factors, which allows us to offer a consistent high-quality experience. We can use this technology across projects.

CEOCFO: Would you give us an example of a typical project that you have worked on; walk us through the steps?

Mr. Summers: Sure, for example one of our clients is Rogers Communications up in Canada. They are one of the largest consumer, cable and content providers in Canada. They are also one of the largest retailers of cellular phones and related technologies in Canada. Rogers wanted their subscribers to be able to control their video recorders in their homes remotely through devices such as iPads and iPhones. They also had a requirement where those subscribers would be able to access their media, such as television programming, from those DVRs within their home on the various devices. We were able to go in and develop, virtually from scratch, a system that provides solutions to Rogers and their more than two million subscribers who have access to this platform and system. Additionally, we run it as a service for them on an ongoing basis.

CEOCFO: Are you doing customized work typically, are there any general solutions that you are able to build on?

Mr. Summers: Repeatability is a huge goal for our company and I think we have been making good progress toward that goal in recent months. We are focusing more on projects in our realm of expertise. Some of our clients’ exciting ideas require custom technologies to stay on the cutting-edge and if we see the industry moving that direction, we will absolutely do the custom work for that. Ultimately, every project is different based on the client’s existing technologies that we need to integrate with, but we’ve really limited these differences to create a solid standard for broadcasting that we can roll out to other customers.


CEOCFO: You are adding quality; you are adding the ability in general. What is the competitive landscape?

Mr. Summers: The competitive landscape is definitely one that is highly fragmented. There are a number of companies that have been around for some time, five to fifteen years, that are solving problems related to managing media assets, and they solve those problems quite well. What makes AllDigital different is that we look at the problem much more from the point of view of being a broadcaster. We help our clients become broadcasters and manage the distribution of their digital media to these different devices. We provide much more of the complete food chain of being able to do everything from ingest, store, prepare, secure, convert and deliver your traditional media feeds to digital television and other devices.

CEOCFO: How do people learn about AllDigital?

Mr. Summers: Typically, our clients come from a variety of sources, but primarily through word of mouth. Our management team has years of experience in the digital media space and we have an extensive contact list of media and entertainment companies. 


We also advertise and interact with targeted clients on the usual websites, like Google, LinkedIn and Facebook, and those attract some interest. Additionally, some of our projects have received a good deal of press as a result of working with some well-known clients. All of this has helped us generate interest and new growth mass.

CEOCFO: AllDigital can manage the solution. Do most people use the additional services? What is the overall revenue model?

Mr. Summers: Yes, the revenue model today is in three phases; the initial consultative and design phase, then we go through a build phase of putting together the solution for the client, and then there is the run phase where we run it as an ongoing service for the client. That is pretty much our current business model. The first two stages are typically non-recurring revenue and then the final run stage is a recurring revenue model.

CEOCFO: Do many people take advantage of your recurring revenue services or is it still a new service for you?

Mr. Summers: There is certainly what we call the “Netflix Problem”, which is when you are running a complex digital service on a 24/7 basis you need a lot of different resources, whether they are technology people, phone support escalation, that sort of thing. By outsourcing the management and the run of the service to a company like AllDigital, our clients can save tremendous amounts of money over trying to do it themselves.

CEOCFO: Are there services you would like to offer?

Mr. Summers: We are always looking at new technologies, new opportunities in the marketplace. I think the industry is definitely going in an interesting direction similar to when Apple came out with iMovies a few years ago. A blank DVD was a few dollars and the concept of creating their own DVD and burning a home movie to it was almost magical at the time. Now we take that for granted. We see a similar opportunity in digital broadcasting where the industry is really at that magic moment where virtually anyone can now become a broadcaster and reach a global audience with potentially billions of people. Our vision as a company is really to be one of the leaders providing solutions and technology that make that vision a reality.

CEOCFO: With the ever-changing technology, how do you keep up and how do you know what is going to become standard and what is going to be a flash in the pan?

Mr. Summers: We definitely follow, to the best of our ability, industry trends. Our clients look at us for that expertise. Some clients really turn to us for industry expertise regarding devices and looking for a return on their investment. Our knowledge base and expertise is extremely valuable, and helps our clients be first to market and always creating the next big thing.


CEOCFO: In general, do your customers look beyond just get-it-done-for-me, do they come to you with set ideas or are you leading the way for what they should be implementing?

Mr. Summers: Sometimes it is a combination of the two. Sometimes our clients have a vision of where they would like to go and maybe we have past experience that will prevent them from making mistakes or doing things that are not best practices. Our clients certainly see value in that. We are constantly innovating and inventing. Our clients are always hungry to be first to market with exciting new technologies that give them a competitive advantage and the differentiation between themselves and the competition.


What is fun and exciting about AllDigital is our innovative nature and we have had some really good client success as a result. One of our clients is Miramax, which has a number of “A” titles such as “Pulp Fiction,” “Chicago,” and hundreds of others. They wanted to sell their movies through Facebook. Now people on Facebook can purchase “Pulp Fiction,” or they can even give “Pulp Fiction” to one of their friends, which is kind of a neat new distribution channel. We love working with our clients and the creative ideas that they come up with.

CEOCFO: Is security an issue?

Mr. Summers: Definitely, security is an issue. Especially, for leading studio content owners such as Miramax. If you are going to entrust hundreds of your movies to a company like AllDigital you need to make sure that they have the studio-approved security and digital rights management technologies to be able to get the media securely from their servers all the way to the destination device.

CEOCFO: How is business these days?

Mr. Summers: The industry is growing tremendously. There are now 9 billion connected devices. That just provides an incredible landscape and opportunity for people that are involved with digital media. We are really excited about the emergence of digital television and digital television technologies. Being able to create your own DVD and show it to your family, five or ten years ago, was a really exciting moment. Over the course of the next year you will see people being able to create their own television programming and television shows and be able to compete for eyeballs with the major media brands. We are excited to be right at the epicenter of that whole shift in technology and this explosion of digital connected devices.

CEOCFO: What is the financial picture like for AllDigital?

Mr. Summers: We are publicly traded with a small cap stock under the symbol ADGL.OB. We recently put out our financials for Q-1 which investors can take a look at as well.

CEOCFO: Why should investors pay attention to AllDigital today?

Mr. Summers: If you are interested and believe in the digital media space, if you look at the AllDigital management team, some of the client wins that we have been able to garner in a relatively short period of time, the emergence of digital television and the opportunities that we see in that particular space-- it is an exciting time for AllDigital. AllDigital is well positioned for the growth of connected devices and the explosion of digital media. Hopefully that is something prospective investors take into consideration.


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We see a similar opportunity in digital broadcasting where the industry is really at that magic moment where virtually anyone can now become a broadcaster and reach a global audience with potentially billions of people. Our vision as a company is really to be one of the leaders providing solutions and technology that make that vision a reality. - Paul S. Summers does not purchase or make
recommendation on stocks based on the interviews published.