Question-and-Answer Session
Operator
(Operator Instructions) We'll go first this afternoon to Paul Coster with JP Morgan.
Paul Coster - JPMorgan
With the understanding of the comments around the inflation usually the third quarter is a strongly positive quarter from a sequential perspective, but it looks like you are pointing towards flat to downish. I am sorry this is not revenue again. Okay I will withdraw that part of the comment but what do you mean by an inflection point?
Kevin Hell
Sure this is Kevin. We are still an inflection between DVD players and emerging products. If you look at the DVD market overall worldwide it's down 20% and it continues to be the lion share of our revenue. The emerging products are coming on-line rapidly as I mentioned we have 1,000 digital television models now certified and 300 Blu-ray models and 40 mobile firms, but they are still growing out of a small base. So we are still in this inflection period that obviously is compounded by the economy overall.
The good news, I would say from our perspective we are very well positioned to grow as the economy recovers. And is big wave of digital media hits. We have all the strategic pieces coming into place. We have the emerging products and all the relationships around those. We have the premium content and the acceptance by the studios coming online, our software engagement continues to increase, we are getting deeper and deeper OEM relationships and getting a lot of strategic interest and it's all coming together for what we believe is a huge next big wave for the company, we're very excited about that.
Paul Coster - JPMorgan
As you see this inflection point from new products, emerging products, what is happening to your per unit royalty rate?
Dan Halvorson
Sure Paul this is Dan. As you know we have a long history with the companies. So, historically a lot of contracts are set, two and some three-year contracts. So those contracts are still in good standing. The emerging and as we talked about before and the inflection point that Kevin just talked about, obviously some of the new products have a different ASP, you move into mobile which is going to be lower set top boxes, they are going to be at different rates. So we are seeing, the constant channels negotiations with our partners, the good news is we have a broader offering and then we are entering into areas where the total adjustable market are much larger. So I see the ASP is flat in certain products down in others and we talked about that before relative to mobile is a good example that we are not going to get the same ASP on a handset as we've been in the past what we received for DVD players.
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