Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note

www.apc.com
Microsoft/Windows
Register for a certification exam.
Average Rating:
Rate this article:  
Microsoft Sells Mediaroom to Ericsson, Will Focus on Xbox
Microsoft Sells Mediaroom to Ericsson, Will Focus on Xbox

By Adam Dickter
April 8, 2013 6:04PM

    Bookmark and Share
Analyst Michael Inouye noted that growth of Mediaroom has been below Microsoft's forecast, partly due to limited fiber optic infrastructure investments on the part of telecom companies and also due to regulatory hurdles. Selling off Mediaroom helps align Microsoft on the consumer side of the equation and away from the service providers.
 



In a reshuffling of its strategy for online entertainment delivery, Microsoft is giving up on its Internet Protocol TV platform, Mediaroom, to focus instead on maximizing the Xbox as a portal for TV shows, movies and videos.

In an official blog post Monday, Yusuf Mehdi, Microsoft corporate vice president of marketing, strategy and business for the Interactive Entertainment Business announced that Stockholm-based telecommunications giant Ericsson would acquire Mediaroom for an undisclosed sum.

Mutually Beneficial

"With the sale of Mediaroom, Microsoft is dedicating all TV resources to Xbox in a continued mission to make it the premium entertainment service that delivers all the games and entertainment consumers want -- whether on a console, phone, PC or tablet," Mehdi said.

Mediaroom was launched in June 2007 as Microsoft TV, and delivers pay TV services, including live, DVR and on-demand content, to multiple connected devices. ABI Research in November reported that Mediaroom commanded a 23 percent global share of IPTV set-top boxes at mid-year of 2012.

"This acquisition contributes to a leading position for Ericsson with more than 40 customers, serving over 11 million subscriber households," said Per Borgklint, senior vice president and head of Business Unit Support Solutions at Ericsson, in a separate statement on the acquisition. "In addition, Ericsson will be powered with senior competence and some of the most talented people within the field of IPTV distribution."

Obstacles in the Way

Michael Inouye, a senior digital home analyst at ABI Research, noted that his firm found growth of Mediaroom to be below Microsoft's forecast, partly due to limited fiber optic infrastructure investments on the part of telecommunications companies and also due to regulatory hurdles in some regions such as Mexico and Brazil.

"This further aligns the company on the consumer side of the equation and away from the service providers and infrastructure-related decisions," Inouye told us, referring to Microsoft's Mediaroom sale to Ericsson.

"There were also some issues with the integration of the Xbox platform with some Mediaroom operators -- this refers to using the Xbox as a set-top box (with a networked DVR). AT&T for instance launched the Xbox/Mediaroom solution but later canceled the program until more work could be done to better the user experience."

"Ericsson acquiring Mediaroom might move the Xbox further away from these types of applications (e.g. console as a service provider set-top box) and position the Xbox as the main entertainment hub from Microsoft's perspective/position."

Low-Cost Entertainment Solution

Inouye added that there have been occasional rumors of an "Xbox Lite" for non-gamers focused on entertainment, but the success of the Xbox 360 shows its potential as a low-cost entertainment solution, while establishing the soon-to-be-released next generation Xbox as the primary gaming platform.

He predicts, however, that it will likely cost more than its predecessor due to features such as Blu-ray playback.
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Microsoft/Windows
1.   Can One Size Windows OS Fit All?
2.   Microsoft CEO Sees 'Bold' Plan Ahead
3.   Design Central to Microsoft Future
4.   Lenovo Still in Small Windows Tablets
5.   How Chrome Eats Your Battery Life


advertisement
Microsoft CEO Sees 'Bold' Plan Ahead
With unified Windows for all platforms.
Average Rating:
Design Central to Microsoft Future
New ethos a break from functional past.
Average Rating:
Bing Lets Europeans Be 'Forgotten'
Following in Google's footsteps.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 

Enterprise Hardware Spotlight
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 
Contrary to Report, Lenovo's Staying in Small Windows Tablets
Device maker Lenovo has clarified a report that indicated it is getting out of the small Windows tablet business -- as in the ThinkPad 8 and the 8-inch Miix 2. But the firm said it is not exiting that market.
 
Seagate Unveils Networked Drives for Small Businesses
Seagate is out with five new networked attached storage products aimed at small businesses. The drives are for companies with up to 50 workers, and range in capacity from two to 20 terabytes.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.