Telecommunications Industry News
Cisco Announces Acquisition of Video-On-Demand Software Start-Up
7:05 am on August 23, 2006 | Category: Business, Corporate, Software, Television
Network equipment manufacturer, Cisco Systems, has announced a $92 million deal to purchase Arroyo Video Solutions, a technology start-up focusing on Video-On-Demand software.
Arroyo, which currently operates facilities in Utah and California, has developed software that could increase the flexibility of the Video On Demand services offered by cable companies. The company’s solutions make it possible for users to access millions of movies and television programs on a single subscription, and is flexible enough to let advertising be inserted into on-demand content.
By purchasing Arroyo, Cisco hopes to build on its previous acquisition of Scientific-Atlanta, and create new products to address changes in the pay-TV market.
“The platforms out there today will not scale to the degree that we envision,” said Cisco’s vice president of video and cable initiatives, Paul Bosco. “The nature of on-demand programming is changing. Cable operators used to be able to offer 100 choices that would get updated every couple of months, but consumers are soon going to expect millions of titles anytime they want them.”
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Published by TeleClick Enterprises
Edited by Jeremy Maddock
