In a move that had been anticipated for some time, Ericsson has reached an agreement with Microsoft to acquire its Mediaroom Internet Protocol (IP) TV solutions business. No financial details were provided publicly.
Microsoft Mediaroom allows operators to deliver an IPTV-based pay-TV subscription service including content-protected live, DVR, video on demand, and applications. These services can be delivered to the consumers on a range of devices inside and outside the home, including wired and Wi-Fi set-top boxes, Xbox 360, PCs, tablets, smartphones and other connected devices — over both operator's managed IP networks as well as (OTT)/unmanaged networks.
The Mediaroom business is headquartered in Mountain View, CA and employs more than 400 people worldwide. The acquisition will make Ericsson the leading provider of IPTV and multi-screen solutions with a market share of more than 25 percent. The closing is expected during the second half of 2013.
Per Borgklint, senior vice president and head of Business Unit Support Solutions at Ericsson, said his company envisions a future with a networked society with 50 billion devices connected via broadband, mobility and cloud.
“Future video distribution will have a similar impact on consumer behavior and consumption as mobile voice has had,” he said. “This acquisition contributes to a leading position for Ericsson with more than 40 customers, serving more than 11 million subscriber households. In addition, Ericsson will be powered with senior competence and some of the most talented people within the field of IPTV distribution.”
The global IPTV market is estimated to reach 76 million subscribers in 2013 growing to 105 million subscribers in 2015.
Microsoft Mediaroom is the technology behind many of the world’s IP television service providers like AT&T U-verse, Entertain of Deutsche Telekom, Telefonica, TELUS Optik TV, and Swisscom. Mediaroom-powered TV services are offered on more than 22 million set-top boxes deployed throughout the Americas, EMEA and APAC.
The agreement is subject to regulatory approvals and other conditions. Mediaroom will be incorporated into Ericsson’s Business Unit Support Solutions.