Light Reading
Cisco looks to kick its cross-platform video strategy into another gear with purchase of media publishing firm ExtendMedia

Cisco Buys Into TV Everywhere (Again)

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
8/26/2010
50%
50%

Cisco Systems Inc. (Nasdaq: CSCO) amped up its TV Everywhere strategy Thursday with a deal to buy ExtendMedia Inc. , a company that handles video and media management and publishing for Tier 1 carriers such as AT&T Inc. (NYSE: T) and BCE Inc. (Bell Canada) (NYSE/Toronto: BCE). (See Cisco Buying ExtendMedia.)

Cisco intends to integrate ExtendMedia's content management systems into its own IP video hardware and software, targeting carriers that want to extend video services to myriad devices, including TVs, PCs, smartphones, and tablets such as the popular iPad.

"We're obviously seeing a transition to IP video architectures in the marketplace, with the service providers looking to deliver on the increasing consumer expectation to be able to access video wherever they are, on whichever device they want," says Kip Compton, who leads the video and content platforms unit of the Cisco Service Provider Video Technology Group (SPVTG).

The buy of Newton, Mass.-based, privately held ExtendMedia is expected to close by the end of the year. Cisco would add the company to the SPVTG, a unit that's responsible for set-top boxes, video encoders, content distribution systems (CDSs), and video-on-demand (VoD) products. It's the second big move for SPVTG recently, as Cisco hired former Microsoft Corp. (Nasdaq: MSFT) exec Enrique Rodriguez in May to lead the unit. (See Former Microsoft Exec Joins Cisco's Video Group .)

Cisco intends to keep ExtendMedia focused on service providers and expects to hire nearly all 52 employees. However, it's not yet saying which executives, such as founder and president Keith Kocho, would stick around.

The deal arrives as operators such as Comcast Corp. (Nasdaq: CMCSA, CMCSK), Verizon Communications Inc. (NYSE: VZ), and Dish Network LLC (Nasdaq: DISH) ramp up their TV Everywhere services, and cable operators begin to pursue IP video strategies. (See Dish: TV Everywhere Site Is Portal to Growth .)

The acquisition would put Cisco in more direct competition with a range of publishers that have TVE aspirations, including Brightcove Inc. ; Limelight Networks Inc. (Nasdaq: LLNW), which recently expanded into the game with its purchase of Delve Networks; and Comcast-owned thePlatform Inc. (See Limelight Takes Aim at thePlatform, Brightcove .)

thePlatform issued a statement on the acquisition, noting that it has been predicting further consolidation in the white-label online video platform market, because serving the premium video market requires scale and resources -- which is why thePlatform got acquired by Comcast in 2006.

The statement also notes that thePlatform managed to maintain its independence. Aside from Comcast, its customers include Cox Communications Inc. , Cablevision Systems Corp. (NYSE: CVC), Time Warner Cable Inc. (NYSE: TWC), and Rogers Communications Inc. (Toronto: RCI).

The ExtendMedia purchase would appear to rub up against Cisco's 2009 investment in Digitalsmiths Corp. , another company that handles provides multi-platform indexing and publishing. (See Cisco Invests in Digitalsmiths .)

But Compton says ExtendMedia (once known as Digital Renaissance) and Digitalsmiths operate in different markets, with ExtendMedia targeted to SPs and the other more focused on other media company types.

Cisco isn't saying whether ExtendMedia, which was founded in 1991 and has raised about $33 million, is profitable.

— Jeff Baumgartner, Site Editor, Light Reading Cable

(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
ycurrent
50%
50%
ycurrent,
User Rank: Light Beer
12/5/2012 | 4:25:24 PM
re: Cisco Buys Into TV Everywhere (Again)


as content goes multi-screen, publishing and management become a feature of e2e IP video delivery/CDNs; content management does not need resource scale, but content delivery and support certainly does.

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 4:25:24 PM
re: Cisco Buys Into TV Everywhere (Again)


Based on a report, it looks like investors are getting back what they put in, and not much more. Multichannel News, citing someone familiar with the deal, says Cisco is paying $30 million to $40 million.  ExtendMedia has raised about $33 million during its history. Cisco isn't releasing the financials, but expect them to show up in a future SEC filing. JB

Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 4:25:20 PM
re: Cisco Buys Into TV Everywhere (Again)


Because the first thing you thought when you saw this announcement was, "I wonder what Juniper thinks about this..."


Juniper has sent a statement pointing out that, in their opinion, service providers want the freedom to pick gear from multiple vendors, "not a siloed stack of capabilities that lock them into a single vendor."


Maybe they wanted to jog our memories about the VXA Media Flow Engine appliances announced this week.

quicktime
50%
50%
quicktime,
User Rank: Light Beer
12/5/2012 | 4:25:16 PM
re: Cisco Buys Into TV Everywhere (Again)


Data Network vendors are evolving like tradition telecom network vendors and trying to provide end-to-end solution. Maybe service providers need multiple vendors to lower theirinvestment cost in the data deliving platform. But considering the complexity of today's network, end-to-end and managed service is a choice for them to push all new services to market as quick as possible.


 

Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
The New Wave of IP + Optical Integration

11|21|14   |   04:29   |   (7) comments


At the Alcatel-Lucent Technology Symposium, Heavy Reading senior analyst Sterling Perrin talks about how SDN has reshaped the discussion around packet and optical integration.
LRTV Huawei Video Resource Center
Huawei Highlights at BBWF 2014

11|20|14   |   3:40   |   (1) comment


Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
LRTV Huawei Video Resource Center
How Will BCMS Stimulate Margin for Broadband Operators?

11|19|14   |   6:52   |   (0) comments


In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
LRTV Huawei Video Resource Center
SingleFAN3.0: Better Connected Experience

11|19|14   |   3:06   |   (1) comment


At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
LRTV Interviews
Basil Alwan Interview: The Road to Cloud

11|19|14   |   09:09   |   (0) comments


Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
LRTV Documentaries
FairPoint Makes a Fair Point About Analytics

11|19|14   |   1:56   |   (1) comment


The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
LRTV Documentaries
Analytics Lets C Spire Get to Know Subs

11|19|14   |   3:01   |   (2) comments


It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
LRTV Interviews
Nuage Branches Out With SDN: CEO Interview

11|17|14   |   9:32   |   (0) comments


Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
Light Reedy
Telecom Analytics Grows Up

11|14|14   |   1:15   |   (4) comments


The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
LRTV Huawei Video Resource Center
Huawei Compass

11|14|14   |   3:17   |   (1) comment


At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
LRTV Huawei Video Resource Center
Huawei's Cloud Strategy in European Region

11|14|14   |   2:56   |   (1) comment


At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
LRTV Huawei Video Resource Center
Huawei's Contribution on OpenStack

11|14|14   |   5:58   |   (0) comments


At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 12, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
The New Wave of IP + Optical Integration
Ray Le Maistre, Editor-in-chief, 11/21/2014
Google, AT&T, BT Unite on Network Data Models
Carol Wilson, Editor-at-large, 11/20/2014
Like Us on Facebook
Twitter Feed