Consolidation in television middleware market is set to continue apace, according to media research firm ABI Research.
Over the past year there have been a number of eye-opening transformational acquisitions, notably Cisco’s US$5bn purchase of…
Consolidation in television middleware market is set to continue apace, according to media research firm ABI Research.
Over the past year there have been a number of eye-opening transformational acquisitions, notably Cisco’s US$5bn purchase of London-based conditional access firm NDS and Arris’ acquisition of Google’s Motorola Home set top box unit for approximately US$2.35bn. ABI predicts that both these kinds of deals and smaller bolt-on acquisitions are likely to take place throughout the year.
Sam Rosen, practice director at ABI Research, said: We expect the TV middleware market to continue its consolidation phase. Two forms of consolidation are expected to occur.
“First, hardware and software companies will come together to offer more of a service oriented approach, similar to Pace’s acquisition of the Latens CAS system in late 2010. Second, acquisitions bringing together technologies required for the next generation TV offering will occur, such as TiVo’s acquisition of TRA for measurement technology.”
The firm estimates that within the total market, the top five players, including Cisco/NDS, Nagra, Microsoft, Motorola Home, and Rovi, account for 70% of the market. Of the remainder, around 20% take the form of innovative start-ups that look like prime acquisition targets.
Ericsson snaps up Microsoft’s IPTV middleware business
The latest transformational deal in the sector has seen Microsoft sell its TV solution Mediaroom business to Ericsson for an undisclosed amount.
The deal will make Ericsson one of the largest providers of IPTV and multi-screen solutions with a market share of over 25%. Closing is expected during the second half of 2013.
Originally launched as Microsoft TV, Mediaroom is an end-to-end IPTV platform that enables pay-TV operators to deliver broadcast services to multiple screens and connected devices both inside and outside the home.
Commenting on the deal Per Borgklint, senior VP and head of business unit support solutions at Ericsson, said: “Ericsson’s vision of the Networked Society foresees 50 billion devices to be connected via broadband, mobility and cloud. Future video distribution will have a similar impact on consumer behaviour and consumption as mobile voice has had.
“Mediaroom is the leading platform for video distribution deployed with the world’s largest IPTV operators. This strategic acquisition positions Ericsson as an industry leader, with more than 40 customers, powering 22 million set-top boxes and serving over 11 million subscriber households.”
Microsoft plans to use proceeds from the sale to focus all its TV resources on its Xbox console.
