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Cisco Goes After Apple TV With $5 Billion NDS Deal

Discussion in 'Off-Topic Discussion' started by CatfishRivers, Mar 15, 2012.

  1. CatfishRivers

    CatfishRivers Well-Known Member

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    Cisco goes after Apple TV with $5 billion NDS deal | Money - WPTZ Home (click for full article)

    "NEW YORK (CNNMoney) - Cisco Systems is riding the wave of connected televisions with a splashy $5 billion acquisition deal for NDS Group, a privately held British TV software company.


    NDS makes software for about 90 cable and satellite companies around the world, enabling content to be delivered to set-top boxes and DVRs as well as mobile devices. That software is in about 125 million households. NDS also powers the user interface for 40 cable and satellite providers, including DirecTV and Britain's Sky.


    Cisco said NDS's technology will be incorporated with its Videoscape system, which the company unveiled at this year's Consumer Electronics Show in Las Vegas. Videoscape is Cisco's cloud-based solution to help its partners deliver content to users on any device, whether it's on a TV, an iPad or a smartphone.


    "We are on the cusp of a whole new wave of digital entertainment experiences that will make video content much easier to find, navigate, interact with and enjoy, on any device and network," said Marthin De Beer, Cisco's video chief.


    The video market's transition to Internet-connected devices is critical to service providers, which drive about a third of Cisco's revenues.


    It's a market that's attracting big-name players, including Apple, Google, and most recently Intel, which is developing its own Internet-based TV service, according to a recent Wall Street Journal report.


    Cisco CEO John Chambers called the NDS bid "one of the most strategic acquisitions we've done" and "the best talent acquisition in our history."



    Cisco hopes to be the backbone of Internet-based TV services. At last month's Mobile World Congress, Suraj Shetty, Cisco's head of marketing, mapped out a future in which a Cisco user interface would control all content available on a user's television, including Netflix, cable programming and on-demand programming."
     
    Last edited: Mar 15, 2012
  2. CatfishRivers

    CatfishRivers Well-Known Member

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    Another Dumb Cisco Buy - DailyFinance (click for full article)

    "In case you haven't heard, going big into video is all the rage today. Intel (NAS: INTC) is looking to create an Internet television service, possibly with its own set-top box. Google flopped with Google TV, but is even looking to become a pay-TV operator itself thanks to its fiber project in Kansas City. Microsoft (NAS: MSFT) has made overtures to cable companies and deals for its Xbox 360 to serve as a set-top box. And Apple's (NAS: AAPL) readying its Asian supply chain to build a television, but the company's stuck on the hard-nosed content negotiations.


    TV: The feel-good story of 2012


    Is there room for one more in the pool? This morning, Cisco (NAS: CSCO) announced its intent to purchase NDS, a company that has software solutions in the pay-TV space. While NDS provides a host of services, Cisco's statement that NDS allows subscribers to "intuitively view, search and navigate digital content anytime, anywhere, and on any device," highlights which NDS feature really gets them excited: delivery technology for next-gen devices.



    This is all part of Cisco's grander Videoscape pitch, in which it's attempting to "reinvent the television experience -- together." More broadly put, it's the tagline at the end of Cisco's minute-long Videoscape intro, which promises amazing next-generation features like the ability to grab shoes out of televisions. The future sure is neat!"
     
    Last edited: Mar 15, 2012
  3. CatfishRivers

    CatfishRivers Well-Known Member

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    Cisco Beefs Up Video Strategy With $4 Billion Deal for NDS - WSJ.com (click for full article)

    "Cisco staked a claim for a bigger role in technology delivering video content, announcing plans to acquire NDS Group Ltd. for $5 billion.


    NDS makes software that its customers use to help deliver television programming and other video though various devices, including TVs and set-top boxes.


    The deal, announced Thursday, puts Cisco on a similar trajectory as some other big Silicon Valley companies. Apple Inc., which already offers an accessory device called Apple TV, is also working on its own line of Internet-equipped TVs, people briefed on the matter say. Intel Corp., which has been trying to get its chips into set-top boxes and TVs, is also trying to line up content for its own service that would deliver video over the Internet, according to people familiar with the matter. Google Inc. is trying to gain traction with an effort called Google TV based on its Android software.


    Chief Executive John Chambers said in an interview that it is a sign that the San Jose, Calif., networking giant's effort to restructure itself around a few core areas is progressing.


    Mr. Chambers said that Cisco won't compete with those companies and instead will target content producers and cable operators, pitching the NDS software as a way to get shows on a variety of screens. "It doesn't matter if it's Android, Apple or anyone else's device," he said.


    Still, Brian Marshall, an analyst at ISI Group, said that because the market for consuming programming across devices is so new and companies with ambitions in the space haven't shown their hands yet, it's best to think of them as competitors. "Everyone is fighting for the same pie," he said.


    Cisco already sells set-top boxes through its 2005 acquisition of Scientific Atlanta. The unit including that business, which Cisco dubs service-provider video, reported sales of $1 billion in the January quarter, up 23% from a year earlier.


    Still, Cisco has been under pressure from some investors to get out of the business as it isn't very profitable and is coming under increased competition. Mr. Chambers said adding NDS should improve the unit's operating margin.


    Analysts said that NDS's software could also give Cisco another option to sell to cable providers and similar customers should set-top boxes fall out of favor as the means to deliver television programming to peoples' houses.


    NDS, based in Staines, on the outskirts of London, was taken private in 2009 in a deal that valued it at $3.6 billion. It is currently owned by Permira Advisers LLP and News Corp., which is also the parent company of Dow Jones & Co., owner of The Wall Street Journal."
     
    Last edited: Mar 15, 2012
  4. CatfishRivers

    CatfishRivers Well-Known Member

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    Cisco Videoscape Demo - CES 2011


     
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