1. transition of video media business cycle
If all the advertisements had disappeared from the world, the media would have become extinct. Most media cannot support creators such as producer, reporter and photographer without advertisement revenue. At present, after the shift from the conventional mass media to Internet media, CGM is dominant, but their revenue comes from advertisement. Advertisement is essential for media. From the birth of TV (1940) to the birth of Internet (1995), TV was the major player and the cycle of advertisement, broadcasting, and consumption was naturally realized. We define this long 55 years as “Era of Media 1.0”. In the era of Media 1.0, each player (broadcasting corporation, advertiser, viewer (consumer)) was really happy. Last 10 years, from the birth of Internet to today, new ambitious companies which intended to monopolize the extensive cycle of Media 1.0 have emerged. They tried new and reckless video distribution without any thought of gain and confused many players which get involved in the conventional media. Those new companies proclaim that they don’t permit users to upload videos copied illegally, but in fact they use them as a means of generating massive traffic to sell an advertisement. However, because of high distribution cost, distrustfulness of content holders, and so on, there are few companies that achieve success as a business model. We define this chaotic 10 years as “Era of Media 2.0”, which is the Dark Age for the media.	1-1 Business cycle of Media 1.0
	1-2 Media 2.0 is the Dark Age

2. Ideas that solve the issues of Media 2.0

The pioneers of video distribution which is struggling in “Era of Media 2.0” face unexceptionally the same issues. Here we adduce two prominent issues, distribution cost and piracy. Regarding the distribution cost, there are some “monsters” which intend to ignore it with their financial power, but at moment no one can ignore the piracy.

2-1 The issues of Media 2.0

It is imaginable that Websites which offer free streaming video distribution spend extraordinary cost to maintain their infrastructure. As a method of reduction of high distribution cost, first, high compression technology is considered. Compression technology has advanced, but it cannot be a fundamental solution. To treat video like a still image on internet, advancement of compression technology will be not enough. The next generation video media requires the change in thinking, which is not “new technology” but “idea of the most effective minimization of streaming video file”. We make clear this point in the following chapter.

2-2 Change in thinking to solve the issues

It is impossible to stop the piracy or file sharing. We need to shift our way of thinking to “create a new mechanism after a permission of sharing all the digitalized contents on internet”. Based on this, we should consider file sharing as means of circulation. Nobody talks to his friends about an unamused content, but exciting content is copied and shared by word of mouth. If we can leverage this added value of word of mouth, business chance is infinite. And if the mechanism that leverages added value is completed, it may be possible that the advertising business cycle of video media in Media 1.0 is resurrected on internet. By the way, content holders aren’t interested very much in the existing DRM technology now because of rampant hacking tools. In many cases, the decryption trigger is charge to viewer, and who don’t want to pay develops hacking tool. And so, change in thinking. Imagine a “DRM which trigger is to contact CM” and videos encrypted by CM element selected by audience attributes. Video files encrypted by CM element are decrypted by CM. When the viewer receives (or views) CM, video file is already decrypted in his terminal.

3. Cmix patent embodies the ideas

Here, we make clear the “idea of the most effective minimization of streaming video file” and “file sharing considered as means of circulation”. Cmix patent has an algorithm which divides video file into two files. Each divided file cannot be reproduced alone. One of the divided files is main file (about 95% of original file) and the other, small file. And based on the idea of “file sharing considered as means of circulation”, main file is released to internet and users can share and copy it freely. Small file is, based on the “idea of the most effective minimization of streaming video file”, stored and managed in the server, and distributed by streaming when users open main file in their terminal. At this moment, small file is encrypted by CM element.

3-1 About Cmix patent 1: flow chart of distributor side

3-2 About Cmix patent 2: flow chart of viewer side

When viewers contact CM, small file is decrypted, and then, main and small files are united

4. Media 3.0
Until now, we get video files on internet and enjoy them on a player installed in our terminal. But with Cmix system, viewer can enjoy videos on the content holder’s website. By doing this, content holders can send their information on the website. Obviously it is possible to insert video CM before playing video or to indicate the latest information and related promotion.	4-1 Movie is reproduced on content holder's website
In addition, if the audience attributes can be collected at the moment of view, content holders can change their website dynamically to optimize for viewers.

We couldn’t know where and how video files are reproduced thus far, but with Cmix system, video files are reproduced on content holder’s website and bring viewers there. Furthermore, in most cases those viewers are interested in content holders; it is easier to induce them to other service. In this way, advertising business cycle of video media in Media 1.0 can be exactly resurrected on internet. It will be the coming of “Era of Media 3.0”.	4-2 The flow chart of Media 3.0
Behind the maturity of Media 1.0, there was a fact that government issued a license to limited companies. They almost monopolized content and advertisement money, and as a result, only they could offer high quality content.

In contrast, in Media 3.0, Cmix patent has a place of license in Media 1.0. This makes possible the world that not only limited companies but also content creators themselves can manage content. Everybody creates and manages their content, and can make a profit from video media cycle.

4-3 The shift from Media 1.0 to Media 3.0

5. Media 3.0 provides viewers convenience
Viewers get video files by file sharing, download, and streaming. In Media 3.0 video files is provided without enforcement of charge. Viewers can redistribute video files to anyone and content holders permit it. All the viewers visit the content holder’s website dynamically optimized by audience attributes, time, or location. For example, a viewer who likes “artist A” downloads video files of “artist A”, and visit the website of “artist A” to view videos. “Artist A” can provide concert or new disc information directly to his fan, or put advertisement suitable for viewer.	5-1 Double-click Cmix file
	5-2 Return to the content holder's website