Press Release
2008-R006
April 23, 2008


NTT Com Launches 1st Service for Affiliate Video Ads with DRM

TOKYO, JAPAN - NTT Communication (NTT Com) announced today the immediate launch of its DRM Video Affiliate service, the online marketing industry's first service to incorporate digital rights management (DRM) for video-based affiliate advertisements.

In conventional Web-based affiliate marketing, each time someone clicks on a banner or other type of ad appearing on an affiliate site, the advertiser pays the affiliate a fee. The marketing practice has promising applications for the increasing number of blog, social-networking and other consumer-generated media (CGM) sites, which attract large volumes of traffic representing potentially huge audiences for advertisers.

Some advertisers have hesitated, however, to let affiliates carry their video advertisements due to concerns that the content might be altered in some way without the advertiser's permission, or that the content might be illegally copied due to inadequate security measures employed by the affiliate's Website.

The new DRM Video Affiliate service addresses these concerns by using DRM technology to encrypt video content for the prevention of unauthorized editing or copying. Advertisers can also specify the duration and number of times that individuals may view their video ads.

NTT Com screens affiliate sites that register with the DRM Video Affiliate service, and then uses Web-filtering technology to periodically monitor the sites, thereby providing advertisers with assurance that their ads will not appear on inappropriate sites. Advertisers also have the option of selecting specific affiliates.

Video content is streamed from NTT Com's own servers, so advertisers do not need to maintain their own equipment. Streaming is performed through the popular Windows Media® Video (WMV) format. After the video is played, the viewer can be directed automatically to the advertiser's official Website.

To use the DRM Video Affiliate service, the advertiser must complete a contract with NTT Com and agree to pay a fee per each view (negotiable, beginning at 30 yen), and a separate fee (also negotiable) for products or services purchased by viewers who link to their site through an affiliate.

To serve as an affiliate, a site must be registered with the DRM Video Affiliate service. Registration and usage of the service is free. Compensation for ad viewings and purchases originating from their sites are decided by the advertisers.

For further information, please visit; http://www.affiliate.ntt.com

About NTT Communications
NTT Communications Corporation (NTT Com) provides information and communications technology (ICT) solutions worldwide with dedicated professionals stationed in 21 countries. Renowned as an IPv6 technology pioneer and managed service expert, NTT Com offers diverse high-quality IP, Web-based, and managed network solutions combining network management, security, ubiquitous, Web portals/engines, and global services. Its world-class Tier 1 Internet backbone and secure closed networks with over 98,000 MPLS ports, combined with the networks of partner companies around the world, connect more than 200 countries. The company earned non-consolidated revenues exceeding one trillion yen (about US$10 billion) in fiscal 2006 ended March 31, 2007. NTT Com started as a long-distance phone company in 1999 after the reorganization of the NTT Group, and is the wholly-owned subsidiary of NTT, one of the world's largest telecommunications companies. NTT is listed in Japan, London and New York stock exchanges. Please visit www.ntt.com.


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