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10/19/11
Telecom Argentina Leverages KIT digital to Deliver Arnet Play, a New Multiscreen OTT Video Service

BUENOS AIRES, ARGENTINA and PRAGUE, CZECH REPUBLIC, Oct 19, 2011 (MARKETWIRE via COMTEX) --

KIT digital, Inc. (NASDAQ: KITD), a premium cloud-based software solutions and technology services provider for multiscreen video delivery, announced today that it is powering Telecom Argentina's multiscreen over-the-top (OTT) premium video service. The service, called Arnet Play, will initially roll out with more than 2,500 video titles, allowing Argentina's largest telecom operator (part of the Telecom Italia Group) to offer premium entertainment content to its more than 1.5 million broadband subscribers. Arnet Play has been launched this week.

Using the KIT Video Platform, KIT digital's broadcast-grade and rights-protected OTT software platform, Arnet Play will allow Telecom Argentina's subscriber base to access Hollywood, independent and locally-produced video content on demand on Web browsers and set-top boxes, with extensible access to other devices. The KIT Platform uses the most advanced, HD-capable, http-based smooth streaming protocol and adapts dynamically to changing bandwidth conditions to provide the best user experience possible. The platform enables a variety of video content business models including subscription, single transaction, and advertising-supported video-on-demand (VOD). In addition, KIT digital oversaw the manufacturing, packaging and importing of the set-top boxes, demonstrating its commitment to the delivery of truly end-to-end solutions.

"KIT digital has been there every step of the way as we developed and deployed this service," said Stefano Core, Director of the Fixed and Broadband Business Unit of Telecom Argentina. "This is a milestone in Telecom Argentina's business and one that has been made possible by KIT digital's technology and expertise. The Argentinean video market and the Latin American market overall will benefit from rights-protected video content being made available across as many devices as possible. This OTT service will give us a competitive advantage over more closed-network video offerings with a technology that is flexible and robust. Arnet Play will provide our customers with new levels of accessibility in this rapidly expanding market."

Over recent years, the industry has witnessed an explosion in the number of video-capable, internet-enabled devices. The rise of tablet devices, together with innovations in smartphone, connected TV and set-top box technology, means customer expectations for video services are at an all-time high. Consequently, operators, large media companies and broadcasters are looking at their entire content workflow with the view to optimizing for this new landscape.

"It is an exciting time for Latin America as a digital media market and Telecom Argentina has recognized that OTT multiscreen video delivery is the future," said Lou Schwartz, KIT digital's regional general manager of the Americas. "This desire to consume content on Internet-connected devices presents a major business opportunity for network operators like Telecom Argentina to leverage their brands and customer relationships and offer an extended range of revenue-generating services."

The ability to derive revenue from media content is becoming increasingly important as the telecommunications sector experiences rapid changes in device types, consumer behavior, delivery infrastructure and publishing points. The largest telecoms brands in the world, including Vodafone, O2, AT&T, Singtel, Orange, T-Online and others are leveraging KIT digital's end-to-end video technology and services to meet the challenges of a changing value-added services market and to capitalize on the opportunities in multiscreen broadband video delivery.

"Arnet Play is a flagship deployment for KIT digital in the region and is representative of how fast the Latin American market is moving," said KIT digital's vice president of OTT solutions for Latin America, Charlie Deane. "We are extremely pleased to be working with a market-leading operator like Telecom Argentina and believe that more operators can benefit from these types of deployments. Latin America already has a strong, innovative tradition in cable video and IPTV deployments, but it is becoming clear that the next phase in video delivery will be via over-the-top platforms as the world increasingly embraces the Internet as the primary way of delivering long form, on-demand and live content to global audiences, anywhere, anytime."

About KIT digital, Inc.

KIT digital (NASDAQ: KITD) is a premium provider of end-to-end video management software and related services. The KIT Video Platform, the company's cloud-based video asset management system, enables enterprise, media & entertainment and network operator clients to produce, manage and deliver multiscreen socially-enabled video experiences to audiences wherever they are. KIT digital services more than 2,300 clients in 50+ countries including some of the world's biggest brands, such as Airbus, The Associated Press, AT&T, BBC, Best Buy, Bristol-Myers Squibb, BSkyB, Disney-ABC, FedEx, Google, HP, Liberty Global, News Corp, Telefonica, Universal Studios, Verizon, Vodafone and Volkswagen. KIT digital maintains executive offices in New York and its operational headquarters in Prague, Czech Republic, with offices in 21 countries around the world. Visit the company at www.kitd.com or follow on Twitter at www.twitter.com/KITdigital.

About Telecom Argentina S.A.

Telecom Argentina (NYSE Ticker TEO)  is a fully integrated telecommunications group operating approximately 25 million access lines. The Company offers fixed-line, mobile, broadband, data and other ICT services to residential and business users as well as governments and corporations. The Telecom Group carries out its main activities through Telecom Argentina (fixed services) and its controlled subsidiaries: Telecom Personal S.A. (mobile) and Nucleo S.A. (mobile in Paraguay). As of June 30, 2011, Telecom Argentina had 4.1 million fixed lines in service, 19.4 million mobile customers (in Argentina and Paraguay), and 1.5 million Internet subscribers. The Telecom Argentina Group generates approximately P$16.6 billion in annualized revenues (equivalent to US$4.1 billion) and P$5.1 billion in Operating Profit Before Depreciation and Amortization (OPBDA) (equivalent to US$1.3 billion). The Company commenced operations on November 8, 1990, upon the Argentine Government's transfer of the telecommunications system in the northern region of Argentina.

KIT digital Contact:
Daniel Goodfellow
Public Relations for KIT digital
Tel. +1-917-513-6081

KIT digital Investor Relations Contact:
Matt Glover or Geoffrey Plank
Liolios Group, Inc.
Tel. +1-949-574-3860

SOURCE: KIT digital, Inc.