After announcing an expanded relationship at CES earlier this year, ActiveVideo Networks decided to buy Tag Networks outright.
The two had combined to use ActiveVideo’s CloudTV interactive streaming platform to deliver games directly to any connected device or digital set-top box, and with those games, they can deliver ads, creating a potential new revenue stream for cable operators.
Tag has accumulated a portfolio of licensed game titles. ActiveVideo intends to move forward with additional game development. Time Warner Cable’s Oceanic system is a prominent customer.
ActiveVideo is currently in approximately 5 million homes, according to the company. It said it anticipates that the combined benefits of Tag and CloudTV, the addition of compelling new titles and the introduction of faster-paced games will significantly drive distribution of both services for the foreseeable future.
“We believe that the games category, which exceeds $25 billion, is among the most significant growth opportunities for our cable, programmer and CE manufacturer customers,” said Jeff Miller, president and CEO of ActiveVideo Networks. “Combining Tag’s advanced games platform with our own industry-leading cloud platform provides our distribution and programming partners with a single, robust solution for delivering games, social communities, iVOD, Internet video, advanced advertising, interactivity and commerce to TVs around the world.”
In conjunction with the acquisition, Tag Networks’ management team and staff have been relocated to ActiveVideo’s corporate headquarters in San Jose. Sangita Verma, CEO and founder of Tag Networks, and Robert Craig, chief creative officer and founder, will serve as president of TAG Games and chief creative officer of Tag Games, respectively, for ActiveVideo Networks; TAG CTO Cliff Mercer will serve as senior vice president of engineering for ActiveVideo Networks.
Earlier this year, Tag announced that its games-on-demand channel was the stickiest channel on Oceanic Time Warner Cable, according to TNS set-top box data. The company said additional deployments and trials are slated over the next 12 months.
Earlier this week, ActiveVideo and SMiT integrated the former’s CloudTV platform with the latter’s CI Plus conditional access modules.