INTERVU Inc. and Wave Systems Corp. Wednesday signed an agreement combines INTERVU's Internet audio and video streaming media capabilities with Wave's secure commerce systems to enable content providers to make money streaming content in a secure environment.

"While the Internet has been about getting things for free, it has to change if companies are truly going to invest in the medium and push it to the next level," said Shailendra Jain, vice president of Wave's New Media Services Group.

"At the end of the day, companies create content to make money -- it's not a hobby. That's why our partnership with INTERVU is a crucial step forward in adding secure, easy-to-use commerce tools to take providing content on the Internet to the next level of profitability beyond sponsorships and banner ads."

To make the system work, INTERVU uses a scalable, patented network of distributed servers to stream live and on-demand audio and video content. Wave's secure, flexible commerce system supports modes of payments like pay-per-view, pay-per-subscription, a back office transaction clearing house and a customer account management system using an online wallet. The wallet includes features such as aggregated billing, online reporting and click & buy, which make it easier for consumers to purchase digital media on demand and manage their accounts online.

"INTERVU is committed to delivering value-added services on top of our patented network foundation that enable our customers to build a viable economic business around their audio and video content," said Ed Huguez, chief operating officer of INTERVU. "Our new alliance with Wave offers content providers a tightly coupled streaming e-commerce solution that has the power to drive new sources of revenue based on a secure, high quality experience."

While the agreement is just being announced Wednesday, several new customers have already signed on to take advantage of the partnership. Kanakaris Communications plans to build pay-per-view models around its entertainment content that will utilize the joint solution from INTERVU and Wave Systems. Kanakaris Communications will be demonstrating several pay-per-view movie business models this week at the National Association of Television Program Executives 2000 convention in New Orleans, La.

"After four years of research and development commencing with our first Internet delivery of a movie with no download time in December 1995, the pay-per-view online movie solution we are demonstrating at INTERVU's NATPE booth this week is the most exciting development in our company's history," said Alex Kanakaris, Kanakaris Communications chief executive officer. "We are delighted with the total delivery solution being offered by INTERVU incorporating Wave's transactional skill and our continued use of broadcast quality Microsoft Windows Media Technology."

INTERVU (ITVU) and Wave are also teaming up to support a subsidiary of Web Video On Demand, WebPayPerView.com, which allows high-speed Internet users to view "niche" content that may not be available through traditional media. WebPayPerView.com will be offering its full-length movies, music, and sporting events on a pay-per-view basis using models such as pricing at a flat rate of $4.99 for a 24-hour "cyberticket."