Founded in 1991, the privately-held Boston, Massachusetts-based company specialized in video content management and monetization. It's closet competitor is thePlatform, which is owned by Comcast. ExtendMedia's main product is OpenCASE, a carrier-grade "TV Everywhere" platform for managing, publishing and monetizing video across PCs, televisions and mobile devices as well as game platforms, set-top boxes, and WiFi-enabled HDTVs. The majority of its employee base in Toronto, Canada, and will be integrated into Cisco's Service Provider Video Technology Group.
Cisco's Enrique Rodriguez, senior vice president and general manager, Cisco's Service Provider Video Technology Group explained the benefits of this deal:
"ExtendMedia will strengthen Cisco's position in the delivery of IP video services by enabling service providers to provide a more interactive and personal experience and to optimize quality for consumer viewing devices."
Q. Why is Cisco acquiring ExtendMedia?
A: Cisco chose ExtendMedia because it has demonstrated success with key Tier-1 Service Providers. ExtendMedia brings a strong software team that understands the complexities of delivering multi-screen video over IP networks. Cisco has developed a successful working relationship with ExtendMedia over the past 2 years, and expects seamless integration with existing engineering teams. With expertise in both IP networks and video infrastructure, Cisco can enable Service Providers to offer a more interactive and personal experience and optimize delivery and quality for the viewing device.
Jeff Baungartner of Light Reading Cable provided some context to the deal within the overall market of multi-screen delivery:
"The deal arrives as operators such as Comcast Corp., Verizon Communications Inc., and Dish Network Corp. ramp up their TV Everywhere services, and cable operators begin to pursue IP video strategies. (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., which recently expanded into the game with its purchase of Delve Networks; and Comcast-owned thePlatform Inc. (Limelight Takes Aim at thePlatform, Brightcove.)"
The Virtual MSO" (”MSO” or “Multiple System Operator” is the industry term for a cable operator, like Comcast), as Janko Roettgers pointed out in his post Cisco’s ExtendMedia Purchase: TV Everywhere And Beyond:
"TV Everywhere was the industry’s favorite buzz word last year, and a number of operators as well as cable networks from Comcast to HBO have rolled out dedicated offerings since, but consumers have yet to jump onto these services en masse. However, it looks like ExtendMedia’s vision of TV Everywhere goes far beyond what’s being offered today."Over the last several years, Cisco has been building its video empire with a focus on video collaboration, content creation and management, with the purchase of the Pure Digital, makers of popular Flip Video Camera, and videoconferencing vendor Tandberg, who it competed with in the TelePresence market.
According to Cisco, the Pure Digital acquisition exemplified its "build, buy and partner" strategy to move quickly into new markets and capture key market transitions. Working in many cases as a virtual company Cisco brokers services and white labels platforms that it hasn't yet acquired. At the time of the Tandberg deal which was a $3 billion purchase, New York Times' Ashlee Vance highlighted Cisco's recent M&A activity highlighted Cisco's recent M&A activity:
"In recent years, Cisco, based in San Jose, Calif., has been one of the technology industry’s most aggressive companies when it comes to acquisitions. It has bought close to 40 companies in the last five years, including the $6.9 billion purchase of the set-top box maker Scientific Atlanta and the $2.9 billion purchase of the Web meeting software maker WebEx. This year, Cisco bought Pure Digital, which makes the popular Flip video camera for consumers, for $590 million."Several years earlier, Cisco also acquired web conferencing platform WebEx, a desktop collaboration standard for many companies and core to Cisco's unified communications experience. There's also speculation that Cisco will expand into the booming virtual event platform its own product for managing large scale virtual events. Over this past year, Cisco acquisitions have included smart grid company Grid Net, design consultancy Moto Development Group, and digital signal processing company Core Optics. See: List of acquisitions by Cisco Systems - Wikipedia for more information.
About Cisco Systems
ExtendMedia is the leading independent provider of enterprise-class, multi-screen video software and solutions that help content owners and distributors build and deploy video services. Extend's flagship product, OpenCASE, manages video content across the lifecycle from ingest to monetization and across IPTV, web and mobile services in both ad-supported and pay media business models. Headquartered in Boston, Mass., ExtendMedia powers initiatives for innovative communications, media and consumer electronics companies including AT&T, Bell Canada, Hewlett-Packard, Mitsubishi/UB Cross, SanDisk and Thales. For more information, visit www.extend.com.
- Cisco Announces Intent to Acquire ExtendMedia -> Cisco News
- Cisco’s ExtendMedia Purchase: TV Everywhere And Beyond
- Updated: Cisco To Acquire Extend Media In Deal Worth $80M | The Business Of Online Video
- Light Reading Cable - Video - Cisco Buys Into TV Everywhere (Again) - Telecom News Analysis
- Updated: Cisco Buys Online Video Distributor ExtendMedia For $80 Million | paidContent
- The Television Industry Re-Made; the Rise of the “Virtual MSO”
- Cisco Buying ExtendMedia, Three Screen Content Platform + Networking
- ExtendMedia » And the walls came tumbling down…