Ericsson wrapped up its acquisition of Microsoft’s Mediaroom business and TV solution.
Mediaroom is acknowledged as the most deployed IPTV platform, with a global market share of around 25 percent, in use by nearly 60 operators around the world, including AT&T, Swisscom, and SingTel. The company said Mediaroom is used to deliver services to almost 13 million households, and close to 24 million set top boxes.
Most operators in the world continue to operate their business in silos, with one system handling delivery to TVs while other largely separate systems were created to deliver video to other consumer devices, noted Ben Huang, the head of global marketing for Mediaroom, in an interview yesterday.
He said that Mediaroom has the rudimentary capability to get the right content to the right device. Ericsson meanwhile has expertise in compression, in content delivery systems (CDNs) and content management systems. Mediaroom can be expected to take advantage of those capabilities.
“If you can optimize compression of the content so that it can be efficiently served to all sorts of devices; you have a CDN that can efficiently route that content, and then you have an IP-based platform in the network – if you will – that can see what devices are accessing the content, that helps to break through the silo problem, because now instead of having a system that will look only at the set-top box and another that looks only at tablets – now you’ll have a more comprehensive system that integrates all those views together, Huang said.
“You’ll still have to integrate OSS and BSS to do integrated billing and provision across the network, but as it relates to the video entertainment experience, you can have this more integrated, non-silo’d approach,” he continued.
Per Borgklint, senior vice president and head of business unit support solutions at Ericsson said: “This acquisition places us even more securely at the heart of an exciting and highly innovative industry. IPTV subscribers alone are predicted to grow by more than 18 percent each year to reach 105 million subscribers and revenue of $45 billion by 2015. By incorporating Mediaroom into our broad portfolio of solutions we will ensure our customers have the ultimate partner as they transform towards true TV Anywhere multi-screen services and optimized video delivery in any network.”
Mediaroom is based in Mountain View, California, and is comprised of more than 400 people worldwide. The former Mediaroom business unit, including staff, will be integrated into the Ericsson group under the business unit support solutions, and will be called Ericsson Mediaroom as of today. Huang said the operation will continue to be managed from Silicon Valley.