DreamStream announced today that they have developed a media encryption and distribution system that is poised to eliminate digital piracy.

“We are very excited about our breakthrough technology. For the first time, digital content can be distributed without fear of piracy. This is a tremendous step for copyright and licensing security,” said Ulf Diebel, CDO of DreamStream.

DreamStream’s media system is based on their 2048-bit encryption algorithm, which has never been compromised by hackers or online pirates.

“Our security is unparalleled,” said Diebel. “We offer military strength encryption in a system that is commercially viable for music and video companies.”

Annually, digital piracy costs the entertainment industry billons of dollars in damages, according to the International Federation of Phonographic Industry’s Digital Music Report for 2008. The IFPI report also notes that the ratio of illegally to legally downloaded music tracks is 20 to one.

“Piracy has had a chokehold on the entertainment industry. Now that can change. DreamStream can restore property rights to their owners and restore the commercial success of music and video recordings with a solution that benefits both producers and consumers,” said Chris Franke, media accounts coordinator of DreamStream.

In recent years, current media distribution systems, such as Apple’s iTunes, have continually fallen prey to online piracy. DreamStream claims to have the solution to this dilemma.

“The existing systems are broken,” said Franke. “If studios and artists want to confront the problem of piracy they must embrace a comprehensive restructuring of their distribution methods.”

DreamStream’s media encryption system differs from existing products and services in several ways. Most noteworthy, DreamStream’s system operates via online streaming and not file downloads. As such, purchased content cannot be stored on users’ hard disks, which eliminates the possibility of copying or redistributing the digital files.

Music files streamed with DreamStream’s system are able to play up to a full 320 KBps, which provides nearly professional quality audio. Programs such as iTunes operate at only 96 KBps. Video files can also be offered at a similarly higher quality than is currently being offered by DreamStream’s competitors.

The DreamStream system is able to transmit media files at such higher qualities because the content does not have to be downloaded.

Unique to DreamStream’s technology is the instant availability of the digital content offered. While most media systems require download or processing delays, DreamStream’s system is able to offer its users instant access to digital content.

DreamStream’s system also features encryption that greatly exceeds current standards. While existing online media distribution systems are typically secured using only a 128-bit encryption. DreamStream touts a full 20 round, 2048-bit encryption, which is the strongest in the industry.

“To win the war on piracy, the industry needs DreamStream’s military grade capabilities,” said Franke.

DreamStream’s media encryption system is one of the many uses for the company’s technology. DreamStream’s 2048-bit encryption can be imbedded into any online or computer-based system.