ActiveVideo Networks has signed an agreement in principle with Funai Electric that will give it a presence in retail stores with cloud-based TVs and Blu-ray players.

ActiveVideo's first consumer electronics deal means its CloudTV-based products will hit retail stores in the near future in the form of Funai's Philips, Emerson, Magnavox and Sylvania brand TVs and Blu-ray players.

Under the agreement, Funai will integrate ActiveVideo's CloudTV platform into selected television and Blu-ray player makes and models, enabling viewers to gain access to streamed Web-based videos, graphics and applications from servers in the network.

"As consumers demand more from their television experience, there is a growing need for the limitless resources that can expand interactivity beyond the device-based widgets found in many of today's connected TVs and other devices," said Jeff Miller, president and CEO of ActiveVideo Networks. "Funai's embrace of CloudTV places it squarely at the leading edge of a new generation of television technology and opens the door wide to content developers who are interested in reaching television audiences."

CloudTV leverages content stored and processed in the network cloud to expand the reach and availability of Web-based user experiences. Content is delivered as a single, adaptable MPEG stream to the consumer electronics device, which passes keyclicks from standard remote controls through the consumer electronics device to the cloud. 

ActiveVideo's CloudTV is available in five million homes, and the vendor previously said it had targeted 10 million homes by the end of last year. While Funai represents ActiveVideo's most significant foray into the retail and consumer electronics spaces, one of its largest customers to date is Cablevision.