**SCOOP!!: Parts of Vidiom's Professional Services Business Sold to Founder, Wahlers

--Will Form Basis of New OCAP Company, enableTV
--Wahlers Explains Goals of New Company to [itvt]

[itvt] has learned that Geneva-based ADB Group, which acquired US tru2way/OCAP specialist, Vidiom Systems, back in February, 2006, has sold parts of that company's professional services business back to Vidiom Systems founder, Tim Wahlers. The business will form the basis of a new company, called enableTV, which has been set up by Wahlers and which has around 60 employees, a number of whom were formerly employed at Vidiom.

[itvt] caught up with Wahlers Sunday morning to find out more about the new company and its goals: "ADB offered me an opportunity to buy back these assets," he said. "Walden Miller [former Vidiom VP of engineering services] and Mark Malinak [former Vidiom VP of business development] are joining me, but Vidiom is keeping a number of employees, including [VP of strategic initiatives] David Housman and [VP of marketing] Mike Malcy. The assets we acquired are various technologies and applications that were developed or licensed by Vidiom. They include tools, such as the vCert testing technology and the Vision Workbench application-development toolset, as well as the iTV Dashboard application and Vidiom's license for the ODL [OCAP Development, LLC] OCAP stack. Our main objective will be to develop OCAP applications--those applications won't be tied to any single stack, but obviously we are focusing on ODL. We hope to expand our mission beyond just services, but in the near term, we will be supporting OCAP, MHP, GEM and ETV/EBIF. We are developing new tools and technologies for those standards. We will initially be targeting our efforts at the cable industry, but we are also planning to move into IPTV. We are currently working on the funding strategy for the new company, and we expect to be making announcements about this in the next few months. In addition to retaining a number of technology assets and people from Vidiom, we have also signed an MOU to acquire the Boulder operations of Solekai Systems, including their testing facility and their cable services business. We're setting up our operations in their former facilities. We believe that OCAP is primed for market success, and especially for retail success, and one of the things we'll be doing is selling the ODL OCAP stack. But until we get closer to retail OCAP, the OCAP stack vendors are all going to be fighting for sales to the cable operators. As it happens, a lot of the operators aren't that much interested in the question of stacks--they're just focused on the set-top boxes, and don't care which OCAP stack they're using. But as we get closer to the retail availability of OCAP in set-top boxes, a lot of opportunities are going to open up for the OCAP stack vendors, so I think it's looking pretty good going forward."

Wahlers stressed that he could not comment on Vidiom's reasons for selling him the assets that are now the core offerings of enableTV, nor on what Vidiom will be doing going forward. However, it is no secret that Vidiom has been refocusing its business strategy over the past few months: in addition to reselling OCAP, MHP and Blu-ray software stacks from its ADB Group-stablemate, Osmosys, it has been significantly expanding its OCAP/tru2way application testing and integration services (which are currently being used by a very significant customer, Comcast Media Center's HITS AxIS, among others), and has discontinued its application-development services.

Canoe Ventures News:

--CEO Verklin Says First Product to Launch within 120 Days
--Company Names Arthur Orduna CTO
--Has Quietly Launched National VOD Service, "Elections '08"

There have been a number of developments over the past few weeks with Canoe Ventures, the US cable industry-backed company that is attempting to build a national unified platform for interactive, addressable and measurable advertising (note: the platform is expected to be built on a variety of open standards, including tru2way/OCAP, ETV/EBIF, SCTE 130 and VOD Metadata Content Specification 2.0):

• According to a report in the media-buyer trade magazine, MediaPost, at a recent Advertising Week event, David Verklin, Canoe Ventures' recently appointed CEO (he joined the company August 4th), stated that he expects that, within a 24- to 36-month timeframe, cable subscribers will be presented with tcommerce-enabled infomercials that allow them to buy products through an electronic wallet service or a charge to their cable bill. He also said he believes that eventually around 50% of TV commercials will be interactive and addressable, and that addressable advertising will be offered to cable subscribers on an opt-in basis. In addition, in an interview with the trade publication, Advertising Age, Verklin stated that, in the first quarter of next year, Canoe Ventures plans to offer a service, called "creative versioning," that will allow broadcasters to sell ads that can be "tweaked" so that, for example, a commercial from a bank could offer no-fee checking in areas where the median income is below $50,000, but promote home-equity loans in higher-income areas. "We hope to bring this product out in roughly 120 days, and our program network partners should be able to deliver this in what is approaching two-thirds of America," Verklin stated. Verklin also told Advertising Age that Canoe (which is now offering a VOD channel, called "Elections '08," that is devoted to political programming and candidate infomercials--see below) is planning to launch a VOD channel, called "My Life on Demand," that will feature health programming and will be designed to attract sponsorship from pharmaceutical companies.
• The company has appointed Arthur Orduna as its CTO. Orduna was previously SVP of policy and product at Advance/Newhouse, the company that owns Bright House Networks, one of the six cable operators that are funding and supporting Canoe Ventures (the others are Comcast, Time Warner Cable, Cox, Cablevision and Charter). Orduna--whose resume also includes stints at Canal+ Technologies and Wind River--had been working closely with Canoe Ventures, and its predecessor, the Project Canoe initiative, for some time prior to his appointment.
• The company (or, to be more accurate, its predecessor, the Project Canoe initiative) has quietly launched a VOD service called Elections '08, that is available to 32 million households served by its cable backers, and that features national and local political infomercials and general political content (including convention coverage, classic political commercials, such as Lyndon Johnson's "Daisy" ad, and short documentaries from the History Channel). According to the New York Times, while the service was actually launched in January, it had generated only 500,000 views by late August, even though the operators that carry it have pledged to run at least 100 promotional spots for it each week. According to David Porter, VP of marketing and new media at Cox Communications' advertising arm, Cox Media, the real goal of the service was to get Canoe Ventures' cable operator-backers used to the process of working together on a project: "What we've accomplished with Elections '08 may not feel and sound like a huge success story to the layperson, but behind the curtain, we've laid the foundation for the cable operators working together in an unprecedented manner," he told the New York Times. "Trends now are causing us to stop and look at these individual cable operators to say, 'How can we compete in the world of the Internet?'"

Hillcrest Labs Claims Nintendo Wii Infringes on its Patents

--Launches Reference Kit, Secures Deal with Kodak

Rockville, Maryland-based Hillcrest Labs (note: earlier this year, the company announced that it had secured $25 million in a fourth round of funding--see [itvt] Issue 7.58 Part 1; it has raised a total of around $50 million to date) says that it has filed a complaint for patent infringement with the US International Trade Commission and also filed a separate patent infringement lawsuit in the US District Court in Maryland against Nintendo. The complaint and lawsuit claim that Nintendo's Wii video game system infringes on three Hillcrest patents (US #'s 7,158,118, 7,262,760, and 7,414,611) which describe technologies for a handheld three-dimensional pointing device, and on US patent #7,139,983, which describes a navigation interface display system that graphically organizes content for display on a television. Hillcrest is asking the ITC--which has now begun an investigation of its claims--to ban imports of the Wii into the US. In a statement on the legal action it is taking, Hillcrest said that "while [it] has a great deal of respect for Nintendo and the Wii, [it] believes that Nintendo is in clear violation of its patents and has taken action to protect its intellectual property rights." The statement went on to say that "given the current status of the filings, the company will not disclose any additional details about the matter at this time."

The patents at issue are related to Hillcrest's flagship pointing and motion-control technology, Freespace. The technology is designed for use in advanced TV remote controls, including the company's own pointer-based, reference-device remote, dubbed the Loop, which allows navigation of TV services using just two buttons and a scroll wheel. The company bills the technology as enabling pay-TV operators and consumer electronics manufacturers to embed motion control and pointing capabilities into a wide range of devices (such as PC mice and game controllers, in addition to TV remotes) and form factors. It offers it in conjunction with an application-creation platform, called HoME, which it bills as allowing "digital content from any source to be displayed on a television using a graphical, zoomable user interface that can be embedded in a wide range of consumer electronic devices." Hillcrest has previously announced licensing deals for Freespace with remote control manufacturer, UEI, and mouse manufacturer, Logitech: in the statement announcing its lawsuit against Nintendo, it said that it has not publicly disclosed all the "leading consumer electronics companies" that have licensed the software to date. The company claims to hold a total of 29 patents worldwide, and says that it has filed for over 100 patents.

According to Hillcrest, Freespace-enabled pointing devices use digital signal processing algorithms that rely on gravity and other inertial inputs to determine their position in the air. The algorithms translate motion instantaneously, and automatically adjust for natural hand tremors, the company says. Unlike gyroscope-based technologies, Hillcrest claims, Freespace-enabled devices work regardless of directional orientation; and, unlike optical pointing solutions, do not require users to aim them directly at the television set or set-top box.

In other Hillcrest Labs news:

• The company has launched a HoME Reference Kit (HRK) for companies looking to develop devices that incorporate its core technologies. According to the company, the HRK offers both HoME and Freespace in a high-end set-top box, in order to enable developers to prototype and build digital media applications that can be controlled by pointing. Previously, companies had to license HoME and Freespace separately and then develop products using their own hardware. According to Hillcrest, the HRK comes pre-loaded with Hillcrest's HoME application suite, which includes photo and personal video management, personal music management, games, broadband media and more. Since HoME is an open application creation platform, Hillcrest says, the HRK is also available with a software development kit which developers can use to built applications that use the company's "Zoomable Markup Language" (ZML). The company claims that programmers who are familiar with developing standard HTML Web pages can easily develop applications with ZML because both use Javascript and are similarly structured. In addition, the HRK includes Hillcrest's Loop remote control, embedded with Freespace. The Standard Edition of the HRK is available today for $500 and the Developer Edition (i.e. the version that incorporates the SDK) is available for $1,500.
• The company says that Eastman Kodak has become the first company to license both HoME and Freespace for use together in a consumer product. Kodak is using the technologies in its new Kodak Theatre HD Player, which launches in the US this month. "It is important to Kodak to partner with innovative companies that complement Kodak technologies," Julie Gerstenberger, Kodak's director of external alliances, said in a prepared statement. "Hillcrest Labs' unique 3-D like applications and motion control technology offer compelling advantages, and we're pleased to have licensed its technologies."

Appeals Court Gives Green Light to Cablevision's RS-DVR Service

--Cablevision Plans to Launch Service Early Next Year

A US appeals court last month overturned a lower-court decision that Cablevision's Remote Storage DVR (RS-DVR) service would violate the copyrights of the broadcasters and studios whose content would be stored on it. The ruling also removed an injunction that had prevented the operator from launching the service. Cablevision announced the service--which it said would allow individual customers to record and store standard- and high-definition programs in their own dedicated space within the company's headend facilities, using their existing, basic digital set-top boxes, and which it claimed would be "permissible" under current copyright law, because the precedent set by the so-called Sony Betamax case, allows individual consumers to make copies of programs for personal consumption regardless of whether those copies are stored locally or remotely--back in 2006. The operator was subsequently sued by a number of major movie studios and broadcasters, and a lower court ruled in favor of the plaintiffs in March of last year. "This is a tremendous victory for consumers, which will allow us to make DVR's available to many more people, faster and less expensively than would otherwise be possible," Cablevision COO, Tom Rutledge, said in a prepared statement. "We appreciate the court's perspective that, from the standpoint of existing copyright law, remote-storage DVR's are the same as the traditional DVR's that are in use today." The industry body that represents US movie studios, the MPAA, has not announced plans to appeal the decision to the Supreme Court; however, it said that it is "considering all legal options."

Speaking at the Merrill Lynch 2008 Media Fall Preview conference in Marina Del Rey, California earlier this month, Rutledge said that Cablevision will resume tests of the RS-DVR service on its campus this month, plans to conduct a full consumer trial in the near future, and hopes to launch the service commercially early next year. Rutledge also stated that RS-DVR would cost the operator around $100 less per customer than traditional (i.e. local-storage) DVR service. In a subsequent interview with the Associated Press, Rutledge said that the service would launch with 160 Gigabytes of storage and would be priced at around $9.95 a month. "If the functions are exactly the same [as a set-top-based DVR], I don't think we'll price it differently," Rutledge told the AP. The service would be accessed through a new remote control and would present subscribers with a new DVR screen, he said. He added that Cablevision would support DVR boxes in the field for the time being, but eventually phase them out.

AFI Digital Content Lab Issues Call for Entries for its Annual DigiFest

The American Film Institute (AFI) Digital Content Lab--an organization that, for the past decade, has fostered interactive TV in the US by bringing together content providers and technologists to collaborate on prototype interactive multiplatform services for television and other media--has issued a call for entries for the AFI DigiFest 2008, which will take place in Hollywood, November 6th and 7th, alongside the annual AFI Fest.

The organization is seeking projects for the second day of the DigiFest, which will consist of a curated showcase of "the best new digital media to emerge during the past year, as presented by the creators." According to the Digital Content Lab, entries should be "ground-breaking" and "effective," and should advance the art of interactive storytelling; they can include digital media projects related to TV, film, games, mobile, broadband or live events, and will be selected on the basis of "innovation, excellence, and potential for being game-changers." Parties interested in submitting entries should email the Digital Content Lab's director, Suzanne Stefanac, at digitalcontent@afi.com.

The first day of the DigiFest, meanwhile, will showcase five interactive projects that are currently being developed in the Digital Content Lab: a live viewing party for the ABC primetime show, "Grey's Anatomy"; an election-related fact-checking service for "PBS Newshour"; a cross-platform alternate reality game for HBOlab; a live audience-engagement project with EarthEcho International; and a social network environment tailored for the Von Dutch Artist-in-Residency program.

ESPN, MLB Extend Agreement for Interactive TV and Other Digital Media

Sports broadcaster, ESPN, and Major League Baseball's Advanced Media arm (MLBAM) have signed a digital rights agreement that will expand and extend their current agreement through 2013. The agreement includes rights for ESPN.com, ESPN360.com, ESPN's mobile initiatives (including ESPN Mobile TV), emerging platforms such as interactive TV, video game consoles and portable devices, and syndication of ESPN-licensed content. It also covers all new platforms that ESPN creates or develops relationships with through 2013, and covers digital rights worldwide (except for certain Asian and Pacific Rim markets). According to ESPN, the new deal represents its most comprehensive multiplatform collection of baseball rights ever.

Specific areas covered by the agreement, according to the parties, include:

• Live game streaming: ESPN360.com and ESPN Mobile TV can simulcast all Sunday Night Baseball, Monday Night Baseball and Wednesday Night Baseball telecasts. In addition ESPN digital media platforms will be able to stream the Home Run Derby and other special MLB events for which ESPN has television rights.
• Expanded online and mobile highlights: ESPN.com and its network of sites will feature more highlights than before, and ESPN's mobile platforms (ESPN Mobile TV and ESPN MVP) will have newly expanded rights to deliver video highlights by themselves and as part of original shows.
• Interactive TV: ESPN will work with MLBAM to develop interactive TV applications around baseball games and content.
• Interactive online applications: ESPN digital media platforms will continue development and enhancement of ESPN GameCast and may develop other interactive apps.
• Alternative platforms: ESPN will be able to deliver MLB content as part of its offerings on alternative platforms, such as the Apple iTunes Store and game consoles (e.g. Xbox Live), as well as on platforms that might be developed during the term of the agreement.
• Content syndication: ESPN will have the rights to syndicate to its various syndication partners some of the MLB content--including video and data--that it presents on ESPN digital media platforms.

In other ESPN news: The broadcaster has begun offering short-form video on social networking service, Bebo.

Verizon, NCTA in tru2way Tussle

In a July 31st letter to the Federal Communications Commission (FCC), US incumbent telco, Verizon, complained that the US cable industry's tru2way standard "is not compatible with other video providers' networks, including Verizon's all-fiber FiOS network" over which it offers its interactive TV-enabled FiOS TV service; and encouraged the FCC to take a "platform-agnostic" approach to fostering the implementation of two-way interactive TV. The letter called on the FCC to "encourage the industry to take steps now--such as the inclusion of the low-cost and ubiquitously used Ethernet interface (RJ45) in CE devices--to ensure that a cable-centric approach to interactive connectivity does not inhibit technological innovation...or disadvantage other segments of the video marketplace. In contrast," Verizon's letter continued, "a purely cable-centric approach that does not provide a more universal interface such as Ethernet would hamper innovation and development of competitive alternatives to the cable incumbents."

The letter went on to explain in more detail Verizon's claim that tru2way represents a "cable-centric approach": the tru2way platform and the recent tru2way Memorandum of Understanding between the six largest cable companies and a number of major consumer electronics manufacturers (see [itvt] Issue 7.87 Part 1) "represent a proprietary approach developed by and for traditional cable operators and that assumes the existence of traditional cable networks and traditional cable hardware interfaces (for example, including a radio frequency (RF) return path--something present on cable's coax networks that does not exist on fiber networks or on services provided by satellite operators or IPTV providers). Therefore, the tru2way approach is incompatible with Verizon's platform and technological approach, as well as that of other competitive video providers that do not rely on traditional cable technology--a fast-growing segment of the video marketplace. Thus," the letter continued, "the agreement surrounding the MOU does not provide a standard that will work for all video providers, and instead only serves traditional cable operators. The President and CEO of NCTA has acknowledged as much by expressing NCTA's continued interest in 'explor[ing] the development of an "all-provider" solution that would allow providers to make their own technology selection, differentiate their offerings, and use different network-specific devices to connect to plug-and-play equipment using a common interface.'"

The letter then went on to explain why Verizon believes the FCC should encourage CE manufacturers to include the RJ45 Ethernet interface into their devices: "This interface is generally accepted as the universal standard for computers, home networking equipment, and other CE equipment, and it can work for cable incumbents and other providers using different technological approaches. This modest step would also be consistent with the recent suggestion of Intel concerning the inclusion of an 'IP-based interface that facilitates home networking, such as Ethernet' into certain set-top boxes. As Intel notes, there is wide and growing 'marketplace acceptance of IP,' and the Commission should ensure that cable-centric standards do not frustrate this promising trend. Therefore, the Commission should urge CE manufacturers--even as they implement the MOU--to take steps now to future-proof their devices and ensure compatibility with video providers beyond the traditional cable incumbents by including an Ethernet interface such as the RJ45 in their devices as the device's only interactive interface (or at a minimum included regardless of what other interfaces the manufacturer elects to include). This is essential in order to ensure that the technological shift towards IP does not end before it reaches the television set, and to ensure that consumers receive the benefit of the full range of technologically advanced video and broadband services available them." If, on the other hand, a new generation of CE devices were to incorporate "the cable proprietary approach, and not the Ethernet interface that is compatible with IP technologies," Verizon's letter argued, "it would suppress innovation and hamper the growth of competitive alternatives to the cable incumbents" which "flies in the face of congressional findings that standards for equipment should mandate only a 'minimum degree of common design' and encourage 'open competition in the market.'" In addition, the letter claimed, "a cable-centric standard would also inhibit competitive innovation in contravention of the goals of the Cable Act and section 706 of the Communications Act. Moreover, a cable-centric standard would hinder the ability of competing video providers to provide competing programming to their subscribers, contrary to the requirements section 628.5."

Verizon's letter elicited a letter of its own to the FCC from the NCTA (dated August 13th), in which it agreed that "Verizon's suggestion that all DTV's include an RJ45 Ethernet input port is worth exploring with CE manufacturers" but stated that Verizon's letter contained a "misunderstanding about tru2way": "Verizon suggests that DTV's that include the tru2way technology will be 'incompatible' with competitive alternatives to traditional cable, including IP-delivered video, and that the use of tru2way technology would somehow impede innovation. This is not correct," the NCTA letter asserted. "Each of the competing MVPD's [multichannel video programming distributors] chose and developed their own differentiated technologies for handling services, but tru2way DTV's will work with each of them. Just as DTV's do today, tru2way DTV's will work with a competing provider's service if the DTV is connected to a provider's set-top box--that is, a DirecTV set-top for DirecTV service, a Verizon set-top with Verizon service, or an AT&T set-top for AT&T service. Consumer electronics manufacturers are also completely free to put connections on their tru2way DTV's and set-top boxes so those devices can access Internet video, and no cable license stands in the way. Tru2way specifically protects innovation in networks, devices, services, and other applications." The NCTA's letter also pointed out that tru2way was developed in an open process, and can be used by any operator that wants to implement it: "tru2way technology was developed in an open process jointly by the cable television and consumer electronics industries, with significant input from the content and information technology industries," the letter stated. "A key element of tru2way is now a national ANSI and international ITU standard. As CableLabs CEO, Dick Green, explained in a June, 2008 keynote at NXTComm, tru2way is open and available to any multichannel provider that chooses to implement it, including Verizon and AT&T."

The NCTA's August 13th response in turn elicited another letter to the FCC from Verizon (dated August 27th), in which it took issue with the NCTA's argument that tru2way digital TV sets would work with Verizon's service, provided they were connected to a Verizon set-top box: "NCTA notes, correctly, that a television set including tru2way technology would not be 'incompatible' with Verizon's FiOS TV service in the sense that the television set would cease to function for FiOS TV subscribers when attached to a 'Verizon set-top,'" the letter stated. "We never intended to suggest otherwise. But this type of 'compatibility' misses the point in the context of two-way plug-and-play standards. One of the principle benefits to consumers of a two-way plug-and-play solution is precisely that it will facilitate interactive services without the need for a set-top box. So a two-way solution that permits interactivity only in conjunction with a provider's unique set-top box--particularly when the traditional cable incumbents would not need a set-top box for the same level of functionality--is no solution at all. And to the extent that CE manufacturers include tru2way into their television sets but do not include other approaches to two-way interactivity that work for other types of video providers, the likely result will be consumer confusion and frustration. Consumers would likely purchase televisions with tru2way only to later be frustrated when they discover that they still need a set-top box for competitive providers using technological approaches that differ from the cable incumbents. This could undermine emerging video competition and inhibit innovation by discouraging consumers from switching to competitive providers who do not rely on traditional cable technology."

Verizon's August 27th letter also took issue with the NCTA's argument that tru2way is available to any operator that chooses to implement it: "NCTA suggests that the tru2way approach somehow ceases to be a proprietary standard, simply because CableLabs (after developing the cable-centric standard) may be willing to allow other providers to sign licensing agreements and use it," the letter stated. "Here too, NCTA's suggestion misses the mark. tru2way was developed in a closed setting designed to serve the interests of cable incumbents, and relies on a cable-centric technological approach. Given the technical differences between the network and services of video providers not using traditional cable technology (e.g., IPTV or satellite) and those of the traditional cable providers, tru2way is simply not an option for achieving two-way interactivity without a set-top box. Therefore, any offer to Verizon or other competitive providers to use the tru2way standards are an empty gesture." Verizon's letter went on to contrast the "closed setting" in which it claims CableLabs' development of standards takes place with the approach followed by the Alliance for Telecommunications Industry Solutions (ATIS), whose work on interoperability standards for TV is "open to providers employing different technological approaches--including the cable incumbents--while the standards and interfaces are still being developed, thus facilitating the creation of standards that serve more than the interests of a single subset of video providers."

Visiware Launches Interface & Design Department

--Forms Partnership with SoftAtHome
--Launches Promotional Offering on Bell TV

Paris-based interactive TV games company, Visiware, has launched an Interface & Design department. According to the company, the new department is dedicated to the creation, design and development of next-generation interfaces for multimedia consumer devices, including TV sets, media centers, Web/PC's, iPhones, multimedia players, GPS devices, and tactile screens; and groups together design, ergonomics, development, testing and marketing "within the same unique structure." The company boasts that it has over 10 years' experience in developing multiplatform applications worldwide and that it can offer turnkey solutions for most middleware platforms, from design to deployment; it claims that services that it has developed are deployed in five continents on over 30 cable, IPTV, mobile and multimedia player networks, and that it has ported over 40,000 applications to 500 different set-top box models and 300 different mobile phone models. In addition to drawing on this experience, Visiware says, the new department will derive feedback from focus groups organized by the company's product team. The company claims that the new department will cater to the needs of operators, manufacturers and content providers that are seeking to offer next-generation consumer interfaces. According to Visiware, the new department can develop EPG's, VOD or catch-up TV portals, mosaic applications, PVR products, "zapping" interfaces, CRM applications, news, weather, sports and radio services, enhanced TV applications and games portals.

At the IBC show in Amsterdam earlier this month, Visiware announced its first partnership for the new Interface & Design department: with SoftAtHome, a company that offers what it describes as a software operating platform for the converged digital home. The companies have co-developed a Flash-based application for digital set-top boxes, which they say makes access to the various services offered on DTV platforms both smoother and faster, and employs interactive animations that guide viewers through a platform's menus and functionalities. It incorporates a channel hopping interface, program information sheets, and navigation within menus; and also integrates a games portal, the companies say. The companies are billing it as combining Visiware's experience in developing rich and dynamic interfaces with SoftAtHome's experience in developing operating platforms. "SoftAtHome's success is based largely on the richness of the applications developed by our partners which are available on our Home Operating Platform," SoftAtHome CEO, Francois Josserand, said in a prepared statement. "We are therefore very happy to welcome Visiware to our ecosystem and allow our clients to benefit from Visiware's unique experience in the fields of interactivity and games for television." Added Visiware's SVP of technology and development, Pascal-Hippolyte Besson: "This is the first partnership entered into by our new User Interface & Design department, providing a new strategic focus for our company. Our objective for this project is to create an innovative and intuitive user interface with this platform's numerous functionalities. We are delighted to work with the SoftAtHome teams to create a new interactive television experience."

In other Visiware news: The company has launched a promotional offer on Canadian satellite TV platform, Bell TV, under which customers can get three of its games services for the price of two. Customers who subscribe to its Playin'TV (includes 14 ITV games) and Playin'TV Max (13 additional ITV games, plus access to mobile and Internet games) services will receive its casino games service, Playin'Casino (offers eight games, including "Texas Hold'em Poker" and "Roulette") at no extra charge. The offer is also open to existing Playin'TV subscribers (or subscribers to Bell TV's Arcade Fun games package, which includes Playin'TV) who want to upgrade to Playin'TV Max. Playin'TV is available in English on Bell TV channel 550, and in French on Galaxie-jeux on Bell TV channel 150. Bell TV also carries Visiware's Minikids TV (targeted at preschoolers) and Venus Games (adult-themed games) services.

TVN Releases Results of VOD Consumer Research

--Signs Deals with Overture Films, Lifetime Networks

VOD distribution services provider, TVN, has released the results of a national consumer research study which it says it commissioned in order to understand the impact of its barker videos on VOD usage. According to the survey:

• 71% of enabled subscribers have recently used VOD.
• More than half of those users purchased VOD content.
• Nearly 70% of users are very satisfied with VOD.
• Satisfaction is strongest among VOD's heaviest buyers, 18-34 year- olds, and teenaged girls.
• More teens (15-17) than adults are purchasing VOD movies, especially teen girls. However, 74% of teens ask permission from their parents before purchasing movies.
• A large majority of VOD users will only watch transactional content in a group.
• Free VOD movies are also usually watched as a group, with over half of respondents saying that they only watch them with others.
• 68% of respondents said that not having to leave the house is their number-one reason for buying VOD movies, with "speed" following closely behind.
• Ease-of-use ranked high (fourth) among the top reasons for buying VOD movies.
• 66% of respondents said that TVN's barker would "highly influence" what they watched.

In other TVN Entertainment news:

• The company says it has signed a comprehensive, multi-year VOD distribution agreement covering all new releases from Overture Films, the theatrical film unit of premium programming provider, Starz. According to TVN, as well as giving Overture access to all its VOD affiliates, the deal provides Overture with the rights to use the company's new iPRI metadata tool: the latter features a Web-based dashboard interface that is billed as allowing content owners to make real-time changes to on-demand titles, program synopses, actor bios, pricing, genre info and folder placement without workflow interruption or the expense of repitching. "We partnered with TVN because of their impressive North American footprint, covering more than 40 million cable and telco VOD subscribers," Marc DeBevoise, SVP of digital media, business development and strategy at Starz, said in a prepared statement. "In addition, TVN manages the operational and delivery details of distribution to their VOD affiliates, which allows us to focus on marketing our titles." Starz bills Overture Films as a fully integrated studio that produces, acquires, markets and distributes "prestigious motion pictures," such as "The Visitor," and the upcoming releases, "Traitor" (stars Don Cheadle and Guy Pearce), "Righteous Kill" (stars Robert De Niro and Al Pacino), and "Last Chance Harvey" (stars Dustin Hoffman and Emma Thompson).
• The company has signed a three-year VOD services deal with Lifetime Networks, a US cable/satellite channel that targets a female demographic. According to the companies, the deal provides a framework under which Lifetime and its various networks--including Lifetime and Lifetime Movie Network--will be able to launch new VOD initiatives, modify VOD programming options, and customize the metadata associated with their on-demand offerings. Lifetime plans to use a number of TVN services, including TVNow, which is designed to enable the quick turnaround of time-sensitive programming into VOD assets; the ADONISS asset management system; and the iPRI tool.
• C-SPAN, a non-profit cable programmer that offers advertising-free coverage of politics and government (note: the company is backed by US cable operators), is using TVN's fast-turnaround service to make the presidential and vice-presidential debates available via its affiliates' VOD platforms. According to C-SPAN, the debates will be available on-demand within a few hours of their linear broadcast. "Making these historic debates available on-demand is an expansion of C-SPAN's efforts using technology to educate and inform American citizenry as they prepare to vote in November, and another example of cable's commitment to public service through their offering of the C-SPAN Networks," Peter Kiley, C-SPAN's VP of affiliate relations, said in a prepared statement.

CBS Interactive Trumpets Significant Increase in Traffic

CBS Interactive says that it experienced dramatic increases in traffic on its portfolio of broadband video-enabled Web sites in July (historically a slow month for online growth), the first month following the integration of its operations with CNET Networks. According to figures from comScore Media Metrix cited by CBS Interactive:

• CNET.com posted a 22% increase in unique visitors over July, 2007.
• BNET.com posted a 19% increase in unique visitors over the preceding month.
• CBSSports.com led all major sports sites over the past three months in average minutes per visitor, average pages per visitor, and average visits per visitor. For the months of May, June and July, CBS Interactive says, visitors to CBSSports.com averaged a combined hour and eight minutes on the site--over 10 minutes more than any competitor--and average 8.3 visits per month (with the closest competitor averaging 6.3 visits).
• CBS.com saw a 32% increase in unique visitors over the previous month, the largest among broadcast network Web sites. It also had the most engaged audience among the network Web sites, CBS Interactive says, with users spending 20 minutes viewing 21 pages. According to CBS Interactive, the site's traffic growth was driven by the launch of the "CBS HD Gallery" (see [itvt] Issue 7.95 Part 1), which debuted in mid-July.
• GameSpot posted a 21% year-over-year increase in unique visitors. According to CBS Interactive, the increase was driven by its E3 convention coverage, which it says generated over 100 million pages viewed and 5 million videos streamed.
• Last.fm posted a 20% increase in unique visitors over the preceding month, and a 36% increase in user-engagement since launching a redesigned user interface in June, resulting in its highest-ever traffic. It also saw a 208% year-over-year increase in total minutes, CBS Interactive says, a 62% increase in unique visitors, and a 115% increase in page views.
• TV.com saw a 10% increase in unique monthly users over the preceding month.
• CHOW saw a 24% month-over-month increase in monthly users and a 256% increase over the previous year.

In a prepared statement, CBS Interactive CEO, Quincy Smith, attributed the growth in traffic on its sites to the company's promotional efforts across its various properties: "Not only are we seeing record highs for several properties but to see them during seasonally slow months attests to the benefit of combination across these great categories," he said. "It also serves to prove the value of on-air call outs and brand building support via purposeful cross-promotion from CBS Television and CBS Radio. With more cross-promotion programs and events on the way, upcoming site updates for many of our leading brands, and a world-class team that knows how to take advantage of the opportunities this combination affords, we're looking forward to the fall and winter."

OpenTV News:

--Acquires Sydney-Based TV Workflow Specialist, Ruzz TV
--Secures Deals with Japan's SKY Perfect, Comcast Spotlight
--Taps Ex-NDS Executive to Lead its Indian Operations

Interactive TV middleware and advanced advertising technology provider, OpenTV, said last week that it has acquired Ruzz TV, a privately held, 10-employee company, based in Sydney, Australia, that provides turnkey software solutions for broadcasters. Financial terms of the deal were not disclosed. "Ruzz TV is an innovative provider of high-quality technology solutions for broadcasters," OpenTV CEO, Ben Bennett, said in a prepared statement (note: for an in-depth interview with Bennett in which he discusses the company's " three-phase" strategy, see [itvt] Issue 8.01). "With this acquisition, we are excited to complement our products and offer broadcasters around the world the right components to manage their workflow and content processes quickly and efficiently." Ruzz TV's customers include Granada (now part of UK broadcaster, ITV), SBS Australia, ABC Australia, Seven Network Australia, Foxtel and Austar.

According to OpenTV, Ruzz TV's main technology provides broadcasters with a platform that enables the optimization of broadcast playout operations by seamlessly integrating mission-critical systems and components supplied by multiple vendors. The platform allows for the rapid deployment of highly flexible solutions across a broad range of operational areas, the company says, covering the business, technical and operational requirements of broadcasters. It also manages the actual assembly and transmission of the stream of pictures and sounds that are broadcast to TV viewers, from scheduling and sales, to acquisition, production, assembly, playout, transmission and distribution, OpenTV says. In addition, it develops solutions that it claims support content management and delivery across a wide range of platforms and formats, as well as the platform-wide synchronization of schedules and metadata. Robert Rutherford, who founded Ruzz TV in 1999, will continue as the company's managing director and CTO.

In other OpenTV news:

• In a conference call with analysts following the release of the company's second-quarter financial results, CEO Ben Bennett revealed that the company has signed a new, multi-year deal with Japanese pay-TV operator, SKY Perfect Communications. SKY Perfect claims to have 4.2 million subscribers, making it the largest satellite TV operator in Asia. While Bennett said that he was not yet at liberty to comment on the specifics of the deal, he stated that OpenTV would provide SKY Perfect with a "next-generation set-top box platform...built on OpenTV core middleware, using our latest DVR technology," and that the deployment would be "one of the most advanced HD solutions yet deployed by OpenTV." Bennett went on to say that the company has begun ramping up its development efforts for SKY Perfect, and that this includes expanding its Japanese operations and moving into new offices in Tokyo in the fourth quarter, in order to accommodate local integration and sales support teams. Bennett also revealed in the conference call that OpenTV has signed a multi-year deal to license its EclipsePlus campaign management solution to Comcast Spotlight, the MSO's advertising sales arm. He said that Comcast has already rolled out the platform in Baltimore, Philadelphia and Seattle, and that OpenTV is also in discussions with other operators about the platform.
• The company has tapped former NDS executive, Kishore Shirekar, to head up its Indian operations. Shirekar, who will hold the titles, general manager, India and sales director, subcontinent, will be based in Mumbai. In addition to managing OpenTV's relationships with existing customers and growing its customer base in India, he will be tasked with opening a new local office that will house a support team for the company's Indian customers, which include Dish TV and WWIL (Essel Group), Big TV (Reliance-Anil Dhirubhai Ambani Group), and Sun Direct TV. "As the leading provider of advanced television services in India, we are committed to this market and to our existing and future customers in this market," OpenTV's Bennett said in a prepared statement. "Establishing local representation will enable us to provide increased support to our customers, grow our customer base, and ensure successful digital television launches across India." (Note: for coverage of recent OpenTV technology news, see article in this issue.)

Illumina Digital Acquired by All3Media

Illumina Digital, a UK company best known for creating interactive scripted programming using on-demand broadband video, games, and other multimedia elements, has been acquired by UK-based TV production company, All3Media. In the course of its 10-year history, Illumina Digital won four BAFTAs and over 20 other international awards for cross-media projects it produced for such customers as the BBC, Channel 4, BSkyB, Nickelodeon and the Royal National Theatre. (Note: for an overview of Illumina Digital's work for the BBC, Nickelodeon and Channel 4, see [itvt]'s 2007 interview with the company's then-head of development, Mike Dicks, in Issue 7.34.) "We all know the digital future is one where the audience will want to experience content across TV, the Internet and mobile," Illumina Digital managing director, Andrew Chitty, said in a prepared statement. "Broadcasters and brands are beginning to realize that audiences have already shifted their behavior and their businesses depend on finding people who can create these compelling experiences. We already work with some of the most creative commissioners and producers of multiplatform content in the UK, but joining the All3Media family will enable us to turbocharge those relationships in the UK and internationally. The creative stable that Steve Morrison and Jules Burns have built is absolutely unrivalled. With Andy Taylor at the centre of its digital approach, All3Media stands out as a group which understands the commercial potential of digital media. It's that combination of old media excellence and new media strategy that we're looking forward to being part of."

inDplay Acquired by Ascent Media's Global Media Exchange

inDplay, a Silicon Valley-based start-up that developed an international online marketplace for film, TV and video rights (note: for more on the company, see [itvt]'s interview with its founder and CEO, Goetz Weber, in Issue 6.98), has been acquired by Global Media Exchange (GMX), a division of Ascent Media that plans to use inDplay's intellectual property and other resources to offer a similar content licensing marketplace service of its own which is scheduled to launch early next year. GMX says that the acquisition will give it "valuable IP product information for software modules including digital rights and deal management" and that it will also enable it to "obtain specific business and market knowledge on the emerging digital content marketplace to integrate into its existing resources and development." GMX says it will continue to service much of inDplay's existing customer base following the acquisition. "By acquiring key IP and learning from [inDplay's] development history, we are enabling GMX to take on new business sooner," GMX's SVP of business development, Steve Lyons, said in a prepared statement. GMX says that it plans to offer a global online platform for content buyers and sellers: for content buyers, the company says, its platform will offer an efficient means to distribute and monetize professional content; for buyers and distributors, it says, it will offer an easily accessible library of premium content; and for both parties, it says, it will streamline content transactions and offer rights management solutions that work across media and platforms worldwide.

Win Gaming Media Sells MIXTV Assets to Playtech

Interactive TV gaming company, Win Gaming Media, has sold the assets of its subsidiary, MIXTV, to Playtech, a company that specializes in developing and licensing software for the online gaming industry. The deal between the companies also sees them signing a license and service agreement for Win Gaming's UK-based subsidiary, Two Way Gaming (note: Win Gaming's partner in Two Way Gaming is UK-based interactive TV formats developer, Two Way Media), under which Playtech has granted Win Gaming a non-exclusive license to use the newly acquired software assets for the sole purpose of providing support and maintenance services to Two Way Gaming. "As a result of the agreement with Playtech, we are bolstering our balance sheet and regaining financial stability, as well as dramatically reducing our operational costs," Win Gaming CEO, Shimon Citron, said in a prepared statement. "We are excited to collaborate with Playtech in what we anticipate to be a beneficial and long-term fruitful relationship through our license agreement. This new business venue shifts our focus to our subsidiary, Two Way Gaming, and the exceptional opportunities we face by working with Virgin Media TV, in nourishing and expanding the 'Challenge Jackpot' gaming channel which launched on July 1, 2008. Win Gaming Media is now free to pursue further sales of certain assets that will broaden its cash basis by generating new revenue share opportunities. I trust that the focus on Two Way Gaming and adding new revenue shared business collaborations will contribute to the growth of the company in the near future."

Interactive TV Company, Icareus, Acquires Mobile TV Company, Cardinal

Helsinki-based interactive TV company, Icareus Technologies (note: the company's flagship offering is the Icareus iTV Suite, a set of tools for interactive TV content production, which includes products dubbed respectively Author, Viewer, Player, Integrator and Manager), has acquired Helsinki-based mobile TV specialist, Cardinal Information Systems, and is incorporating all the latter's products and IPR's into its own product line-up. Cardinal's customers include Siemens, Tandberg, RiksTV, Samsung, NEC Europe, Broadcast Service Danmark, RAI Torino, Ericsson, Teleca Italia, LG, Radio Television Brunei, Telecom Italia, ORF, Philips Electronics, Multiplus, IDway, R Cable y Telecomunicaciones, THALES Broadcast & Multimedia, and Reti Televisive Digital. "Cardinal has been one of the forerunners in digital TV and mobile TV markets and their products are widely recognized by the industry," Icareus CEO, Toni Leiponen, said in a prepared statement. "I am very excited about the acquisition and the way it strengthens our product portfolio. With our strong experience from interactive TV content production, we offer an unchallenged combination of know-how for broadcasters and operators. We are now able to offer our customers a full playout solution for digital TV, both in terrestrial and mobile."

Cardinal's Cardinal Playout product line-up--which will now be rebranded as Icareus Playout--consists of the following solutions:

• PC200 Compact, which supports free-to-air broadcast of IP Datacast services over DVB-H networks. It is targeted at broadcasters, system integrators, academic institutions and other organizations that need a complete broadcasting solution for testing and development of mobile TV services using DVB-H.
• ES100 ESG Server, which acts as an aggregation server for collecting ESG metadata from external sources and feeds the output to an external IP encapsulator.
• IE100 IP Encapsulator, which, as its name suggests, is an IP encapsulator for DVB-H networks. According to Icareus, it provides multi-protocol encapsulation with time-slicing and insertion of FEC information based on Reed-Solomon calculation. It supports parallel time-slicing by defining multiple independent MPE channels, with time-slicing being performed independently on each MPE channel. According to Icareus, this enhances performance--for example, by minimizing zapping times when changing between channels.
• CS300 Filecasting Server, which Icareus says is a FLUTE carousel server with optimized carousel-generation, FEC and post-repair functionality. It is used in mobile TV broadcast systems for file-based content (e.g. ringtones) that is to be broadcast to a large number of subscribers, for any file-based data that a mobile TV application might require, and for the delivery of externally generated ESG data.
• Business Server, a J2EE application suite that provides services and functionality required by mobile TV service provisioning and protection (SPP) services.
• PC100 Compact, a broadcasting solution for MHP/DVB dataservice testing and development. According to Icareus, it is a software solution that uses open standards and runs on any standard PC.
• CS100 Carousel server, which Icareus says allows the building and supervision of high-quality TV services by multiplexing data in real time. The data can be received from multiple sources, including DVB-ASI feeds and IP networks.
• CS200 SSU Server, a bootloading server that is targeted at DVB network operators. According to Icareus, it provides a centralized system for broadcasting firmware upgrades to set-top boxes, and provides everything needed for signaling presence of firmware streams as well as multiplexing all the firmware streams together and performing PID remapping.
• Cardinal Studio, which Icareus is abandoning in favor of its own Icareus iTV Suite Author content-production tool. The company also says it has sold Cardinal's DVB-H middleware products to Axel Technologies.

PEOPLE

Miniweb Appoints New CEO, Raises $32 Million

Miniweb--a company which offers a service, dubbed "TV Key," that enables broadcasters and advertisers to repurpose Internet content as interactive enhancements to their shows or commercials on broadband-connected set-top boxes, thus providing an inexpensive way to launch interactive TV services (note: the company was founded by former BSkyB ITV executive, Ian Valentine, who spun it off from the satellite provider; its technology is based on the BSkyB-developed WTVML standard, which is supported by around 9 million set-top boxes, and was originally used to power the operator's Skynet service)--has appointed Andrew Carver as its CEO, replacing Valentine, who will now serve as the company's chief architect. According to Miniweb, the move is designed to drive its international growth. "To drive the growth and expansion of Miniweb, we need an experienced, international CEO with the strategic and commercial vision to lead our team," Miniweb chairman, James C. Allen, said in a prepared statement. "Andrew Carver brings a strong track record of senior management success in broadcast technology and IP services. He has the energy and vision to make Miniweb a true global winner and we're very pleased to have him on board." Added Valentine: "Andrew brings the international and operational management expertise that we need to achieve our vision of enhancing the value of broadcast TV and broadband entertainment by making it more interactive. I am excited to have Andrew on board and look forward to working with him to drive the adoption of our next-generation interactive TV platform."

According to Miniweb, Carver has 20 years of international senior management experience at start-ups and multinationals, and has a "strong, sales-driven" background in the technology, media and telecommunications sectors. His resume includes stints in CEO and managing director positions in various European countries for Multicom Security, Transcomm, EUnet and CompuServe; and stints in senior sales and marketing roles at NDS, Compaq and Hewlett Packard. He will sit on Miniweb's board of directors. "Not since the explosive growth of the worldwide Web has there been such a significant opportunity to revolutionize how consumers engage with entertainment, information and advertising," Carver said in a prepared statement. "Miniweb allows broadcasters, content owners and network operators to create highly targeted consumer profiling for advertisers. It empowers viewers to interact with and personalize their TV experience with relevant broadcast and broadband entertainment, making it more engaging."

In other Miniweb news: The company announced earlier this month that it has secured $32 million in venture capital in a funding round that was led by Meritage Funds of Denver, Colorado and DeGeorge Holdings III of Nevada. "Miniweb answers a clear global need for interactive services using open technology that can work on existing TV devices with a remote control," Miniweb CEO, Carver, said in a prepared statement. "The standards-based platform and browser are TV-, device-, and middleware-agnostic, making them easy and more cost-effective to deploy than proprietary solutions across cable, satellite, terrestrial or IPTV broadband networks. We have a unique and powerful service offering with an exciting, wide-ranging vision to deliver a converged broadband and broadcast entertainment experience and are already providing interactive TV capability to over 9 million homes. We are delighted with this round of funding and pleased that experienced and successful investors such as Meritage Funds and DeGeorge Holdings share our vision and recognize our market potential. This funding will enable us to invest in the additional resources we need to deliver our interactive broadcast and broadband TV vision to our customers and partners worldwide." Added Miniweb chairman, James C. Allen (who is also operating partner at Meritage Funds): "We are deeply impressed by the people, the technology and the thinking at Miniweb. We have reviewed a number of interactive TV and advertising propositions and believe that Miniweb's offering stands out not only by delivering its innovative, standards-based technology that offers advantages to every member of the broadcast and broadband value chain but also by being globally deployable and scalable on virtually any TV distribution network or TV device. We invested in Miniweb because the company has the right technology and solutions to make interactivity on the TV a huge success, no matter how the consumer receives their broadband service."

BBC Names Kerstin Mogull COO of Future Media & Technology

The BBC has named Kerstin Mogull to the newly created role of COO of its Future Media & Technology arm. Mogull, who will report to Future Media & Technology's recently appointed director, Erik Huggers (note: Huggers replaced Ashley Highfield, who is now CEO of Kangaroo, the VOD joint venture between the BBC and two other UK terrestrial broadcasters, ITV and Channel 4), will focus on the management and governance of the division, its partnership with other BBC divisions (i.e. Vision, Audio & Music and Journalism), and its relationship with the BBC Trust. She was previously the BBC's deputy director of policy and strategy, in which role, the Corporation says, she was instrumental in driving its content strategy across all media platforms. Prior to that, she was controller of the BBC's Strategy Group, where she was responsible for a number of high-profile initiatives, including "Delivering Creative Future." "Kerstin brings with her a wealth of experience in organizational and strategic thinking from right across the BBC to what is a critical new role," Huggers said in a prepared statement. "Her appointment allows us to build strong governance and real coherence across the Future Media & Technology portfolios, as well as managing our relationship with the Trust--which is key to the success of our division."

ActiveVideo Networks Continues to Expand its Senior Management Team

--New Hires Include Interactive TV Pioneer, John Callahan

Interactive TV pioneer, John Callahan, has joined ActiveVideo Networks (formerly ICTV) as its CTO. He will be tasked with spearheading technical development and deployment of Web-based interactive TV applications (based on ActiveVideo's "intelligent video streaming" technology, which allows interactive Web content to be delivered on TV) targeted at all video platforms. Callahan previously spent 15 years at Time Warner Cable, where he was involved in many of the operator's interactive TV and VOD initiatives, and where he served most recently as SVP of software engineering for its Advanced Technology Group. He was a significant contributor to the creation of the Time Warner Cable Pegasus digital television system architecture, and to such seminal interactive TV technologies and standards as the Interactive Services Architecture (ISA), VOD, OCAP and EBIF/ETV. He was also one of the principal developers of Time Warner Cable's pioneering network PVR service, MystroTV, and subsequently led the transformation of that service into the operator's current Start Over offering. In addition, he was closely involved in implementing Time Warner Cable's caller ID on TV service and its OCAP set-top navigator.

Earlier in his career at Time Warner Cable, Callahan was part of the engineering team that created and deployed the pioneering interactive TV service, the Full Service Network, in the mid-1990's. Prior to joining Time Warner Cable in 1993, he worked in systems software engineering and development at AT&T Bell Labs and at US West. Callahan has received Technical Emmy Awards for his work on Time Warner Cable's Start Over and VOD services, and is the lead or co-inventor on 13 US Patent Office filings. He holds a BA (Phi Beta Kappa) in computer science from Ohio Wesleyan University and an MS in computer science from the University of Illinois at Urbana-Champaign. "John Callahan's vision and product leadership have consistently and dramatically improved the way consumers experience and engage with video," ActiveVideo Networks president and CEO, Jeff Miller, said in a prepared statement. "His passion for personalized services, his understanding of industry needs and his technical expertise all will help to drive the continued development of ActiveVideo to meet the needs of a new breed of television viewer and generate new revenues for programmers, service providers and CE manufacturers." Added Callahan: "Having spent many years working toward a vision of consumer choice, convenience, and control for cable customers, I have developed a profound appreciation for ActiveVideo Networks' capabilities. ActiveVideo complements evolving ETV and tru2way platforms and enables the integration of the latest in interactive Web video with personalized television across all operators' set-top platforms."

ActiveVideo Networks bills channels powered by its platform (note: it claims that its platform is now powering interactivity for over a million cable and IPTV customers) as seamlessly combining broadband video, graphics, viewer interaction and targeted interactive advertising: broadband-driven channels are personalized in the network and delivered to the TV set via the ActiveVideo Distribution Network, reducing the cost of program production and keeping the features of high video quality, immediacy and remote control navigation that viewers expect from television, the company says. It claims that its technologies allow TV viewing to be shaped by a wide range of entities, including traditional and Web-based programmers, local cable affiliates, consumer electronics companies, advertisers, social networks and viewers themselves. (Note: for an in-depth interview with John Callahan, see [itvt] Issue 8.02.)

ActiveVideo's hiring of John Callahan is part of an effort to expand its senior management team that has been underway since the spring. In March, it named Duncan Campbell VP of business development ; in April, it named Mark Dawson VP of programming services (see [itvt] Issue 7.95 Part 2); in July, it tapped advertising-industry veteran, Todd Nisbet, to set up and lead a new department dedicated to popularizing its services among advertisers (see [itvt] Issue 7.95 Part 2); and, earlier this month, it announced that it had hired Edgar Villalpando as SVP of marketing and Jason Harvey as VP and general manager of program strategy and operations:

• Villalpando, who will be responsible for all marketing activities for the ActiveVideo platform, was most recently general manager of Thump, an agency that develops and markets branded content through a combination of traditional and interactive platforms. Prior to that, he was VP of new media and business development for HBO's International group, with specific responsibility for expanding the programmer's linear and new media properties into new territories. He also served as VP of marketing at HBO, managing international marketing and communications efforts for the HBO and Cinemax brands. Prior to his stint at HBO, Villalpando served first as director of marketing and advertising and then as director of advertising and brand management at DirecTV. In the former role, he focused on supporting the satellite TV provider's international programming within US multicultural markets; and in the latter role, he was responsible for its domestic brands and associated markets. He began his career in the advertising agency world, working on such accounts as Ford, Miller Brewing, Mobil Oil and Wesson Oil. He holds a BA in psychology from UCLA. "Edgar Villalpando's wide-ranging background in programming, distribution, advertising and new media will help increase the brand equity of ActiveVideo as a platform that can help our customers satisfy the demands of a new generation of television viewers," ActiveVideo Networks' Jeff Miller said in a prepared statement.
• Harvey, who will be tasked with "maximizing the business potential" of the ActiveVideo Distribution Network, including the acquisition, carriage and monetization of content, joins the company from Google, where, as senior industry marketing manager for the Asia Pacific and Latin America regions, he was responsible for developing growth strategies for Latin America with a particular emphasis on the Argentinian, Brazilian, Chilean and Mexican markets. According to ActiveVideo, during his two years in that position, he implemented significant revenue-producing new media solution and monetization strategies for Google and YouTube that enabled significant penetration of the non-search market. Prior to his stint at Google, Harvey supervised US Hispanic marketing efforts for Nissan, as group account director and general manager of the Vidal Partnership, and was regional sales and marketing director for Land Rover. He also spent time at Microsoft, working on new business initiatives for the company in Brazil. He holds a BS in marketing from the University of Southern California and an MBA from UCLA. "We see the creation of a strong content business that offers new opportunities for advertisers as a key part of the ActiveVideo value proposition," Ed Forman, EVP of products and services at ActiveVideo Networks, said in a prepared statement. "We believe that Jason Harvey's superior management skills and innate sense of marketplace trends will accelerate our ability to create and execute the comprehensive, compelling content strategy that will benefit our customers, our partners and ourselves."

S&T Names Ian Harris GM of Interactive Services and Applications

UK-based interactive TV technology provider, Strategy & Technology (note: the company's offerings include DSM-CC object and data carousels, MHEG application development, MHEG engines for receiver applications, TV-Anytime stream generation, and more), has named Ian Harris to the newly created role of general manager of interactive services and applications. Harris--who according to S&T has extensive experience in the broadcast and IT sectors--will manage the playout side of the company's business, including its TSBroadcaster and TSPlayer products, and will also be responsible for expanding its application development and professional services operations. "Interactive television--from what are now being viewed as essential basic services up to the more elaborate applications--is a rapidly growing sector of the broadcast industry," Harris said in a prepared statement. "Even a swift examination of S&T and its market position shows what a focused company it is, and I am pleased to be a core part of the next wave of expansion."

Harris joins S&T from NDS, where, according to S&T, he spent three years coordinating product development and strategic direction, leading the deployment of next-generation user-interface products to customers around the world. Prior to that, he was head of engineering and product development for Australian pay-TV operator, Austar. He also has a strong track record in interactive TV software development, S&T says, and set up one of the first independent ISP businesses in his native Australia. (Note: for recent product news from Strategy & Technology, see article in this issue.)

Cox Names Pickelsimer Executive Director of Video Product Development

Cox Communications, the third-largest cable MSO in the US, has promoted Lisa Pickelsimer to executive director of video product development. Pickelsimer, who will report to Steve Necessary, Cox's VP of video strategy and product management, will be tasked with driving the development of all new product initiatives that encompass video, including initiatives related to TV, the PC and wireless devices. Specific areas she will be focusing on, according to the company, include Cox's set-top receiver video user interface, interactive TV, VOD, PVR, video mobility, and the company's implementation of the tru2way standard. "Lisa has demonstrated superior leadership in our most important undertakings over the past few years and is the right person to take our video product development activities to the next level," Necessary said in a prepared statement. "I have the utmost respect for her talent and perseverance and trust her to lead this important part of the organization."

Pickelsimer joined Cox in 1999 as senior analyst for new media development at the company's Cox Enterprises arm, and was promoted to manager of new media development in 2000. She became manager of video product development for Cox Communications in 2001, and was promoted to director of video product development in 2003. Prior to joining Cox, she worked in product management at Scientific-Atlanta. She has a bachelor's degree in electrical engineering from Clemson University, a master's in electrical engineering from MIT, and an MBA from Emory University.

TiVo Names Anna Brunelle CFO

DVR vendor/service provider, TiVo, has named Anna Brunelle CFO. Brunelle, who will report directly to president and CEO, Tom Rogers, has been at the company for almost four years, most recently serving as VP of finance, controller and treasurer. According to TiVo, her responsibilities have grown to encompass all financial operations, including accounting, tax, treasury, purchasing, internal auditing, financial reporting and planning. She replaces interim CFO, Cal Hoagland, who will leave the company after a short transition period and will continue as a partner with FLG Partners.

Prior to joining TiVo, Brunelle held corporate controller positions at Broadvision, Adaptec, Roxio and Napster. According to TiVo, at Adaptec she facilitated the spin-off of Roxio; and subsequently, while at Roxio, helped it move into the online music business through the acquisition of Napster. She began her career at Deloitte & Touche, and, TiVo says, has also held senior finance roles at a number of Silicon Valley start-ups. As a member of our management team, Anna has done an outstanding job of leading our accounting, corporate finance, financial reporting and planning functions at TiVo," TiVo's Rogers said in a prepared statement. "Her work and analysis has helped us bring subscription acquisition costs and marketing expenditures in line as we shift our business model. She brings a wealth of experience working with other growth companies in the technology sector. We respect her accomplishments immensely and I look forward to working closing with her in the months and years ahead."

BrightLine iTV Names Audrey Marco VP of Business Development

Interactive TV advertising agency, BrightLine iTV Marketing Specialists, has named Audrey Marco VP of business development. Marco, who is based in the company's Los Angeles office, will be tasked with leveraging her experience and relationships with consumer and entertainment brand marketers to convince them to use BrightLine to create interactive TV ads. According to BrightLine, Marco launched her digital marketing career at Sony Pictures Entertainment in 1994, where she founded the company's digital division and implemented strategies for marketing the studio's entertainment properties through interactive online and mobile initiatives. The company says that her career has seen her delivering marketing and branded entertainment solutions for and managing strategic alliances with such companies as CBS, Pepsi, WAMU, Ford, T-Mobile, MySpace, American Airlines, Rayovac, and Microsoft. She has also consulted for a number of entertainment companies, including Mark Burnett Productions, Warner Bros Animation, and Electric Farm Entertainment. She has won a number of awards, including the Promotional Marketing Association's Reggie Award and the Hollywood Reporter Key Art Award. "Audrey will make a fine addition to our team," BrightLine CEO, Jacqueline Corbelli, said in a prepared statement. "Her depth of experience, demonstrated skill and range of accomplishments in creating true integrated marketing solutions for the entertainment industry is an exceptional fit with BrightLine's unique ability to achieve a two-way TV dialogue between consumers and marketers."

Bravo Names Aimee Viles VP of New Media

NBC Universal-owned content company/broadcaster, Bravo Media, has named Aimee Viles VP of new media. She will be responsible for supervising Bravo's New Media department, including all wireless, interactive TV, gaming, and other emerging media initiatives. "We're very happy to have Aimee join our team," Bravo's SVP of digital and new media strategy, Lisa Hsia, said in a prepared statement. "She brings with her a unique skill set, knowledge on major market trends, experience with the latest technology for Internet and mobile TV, and a fresh set of eyes to bring innovation to Bravo's core audience."

Viles was previously director of creative services at Portland, Oregon-based interactive TV authoring solutions provider, Ensequence, where she was tasked with building revenue-generating business services for the company's programming and advertising partners and spearheading development for new business ventures; and where she worked with such clients as NBC, Bravo, MTV, Nickelodeon, ESPN, GSN, Showtime, AETN, CNN, Nike, Ford, Sony and Verizon. Prior to joining Ensequence, she worked at UK-based Vodafone, where she was responsible for content strategy and programming plans for the mobile provider's Internet applications and strategy. She graduated from the Rochester Institute of Technology.

Concurrent Names Emory Berry CFO and EVP of Operations

VOD technology provider, Concurrent, has named Emory Berry CFO and EVP of operations. Berry has actually been serving as the company's CFO since March, 2007, through a contract with TechCFO, where he was a partner. According to Concurrent, he has 20 years of experience with private and public firms in the high-tech and healthcare industries, including stints as CFO and treasurer at DVT Corporation and Firearms Training Systems, and as corporate controller at EquiMed. He holds a BBA in accounting from Samford University and an MBA in accounting from Georgia State University. In June, he was named as a finalist in the Atlanta Business Chronicle's CFO of the Year awards. "Emory's appointment represents another step in executing our vision for Concurrent," Concurrent president and CEO, Dan Mondor, said in a prepared statement. "Emory has been instrumental in the recent transformation of Concurrent's finance and operations organizations. His leadership has led to improvements in gross margins, cash position and overall fiscal discipline, as well as streamlined operations and an increased focus on critical vendor partnerships. Emory's continued leadership of Concurrent's finance and operations underpins our plan to drive revenue growth and increase profitability."

Conviva Raises $20 Million in Series B Funding

Conviva--a start-up that offers a platform called Conviva C3, which it says enables live, interactive and secure broadband video--has secured $20 million in a Series B funding round. The round was led by UV Partners, and saw the participation of Series A investors New Enterprise Associates (NEA) and Foundation Capital. The company says that it will use the new funding (note: it has raised a total of $29 million to date) to expand its global platform, accelerate product development, and invest in business development with key customers. "This investment is a fantastic milestone that validates the leadership team, the value to customers, and the confidence in our ability to execute," Carlos Ramon, Conviva's president and CEO, said in a prepared statement. "Raising such a fast and aggressive round of funding underscores the confidence in our innovative technology platform and the years of tremendous science that led to its development. In a crowded and cynical market plagued by empty promises, this funding bolsters Conviva's staying power and will propel us into the future."

Following the closing of the funding round, UV Partners managing director, Carl Ledbetter, has joined Conviva's board of directors--which also includes TiVo co-founder, Mike Ramsay. His resume includes stints as SVP of engineering/research and development and CTO at Novell (where he was responsible for the company's venture fund), and as president of AT&T's consumer products division. "Dr. Ledbetter will be a tremendous asset to the company, as he brings a wealth of technical knowledge, market insight, and proven executive leadership," NEA partner, Peter Sonsini, said in a prepared statement. "Like fellow board member Mike Ramsay, the co-founder of TiVo who fundamentally changed the way we watch TV, Carl is a visionary who will support our scientists and engineers as we transform the live online viewing experience for people around the world." Conviva bills its C3 platform as "the world's first media platform that enables content owners to intelligently and securely manage the distribution of live media and real-time programming online." According to the company, the platform was designed for live media from the ground up, and enables content owners to create a new "virtual living room" audience experience and improve the economics of digital media on the Internet. "Conviva has solved the most challenging problem of the Internet: ensuring a live, high-quality, online media experience," Foundation Capital general partner, Adam Grosser, said in a prepared statement. "By overcoming the broken mechanics of first-generation solutions, Conviva has radically altered the economics for content owners so they can realize new revenue streams by monetizing content never accessible before, differentiate themselves from competitors, and expand their global audience reach."

Entone Raises $4 Million in Series B Funding

Entone, a company that specializes in IPTV home connectivity solutions, has secured $14.5 million in a Series B funding round. The round was led by Coral Capital Management, and included existing investors, Menlo Ventures and Scale Venture Partners. The company says that it will use the new funds to support growth of its business and to expand its product portfolio, which is targeted at telcos offering IPTV and broadband TV services. Following the closing of the funding round, Coral director, Chris Smith, has joined Entone's board. "Today's IPTV services have enjoyed tremendous growth," Smith said in a prepared statement. "With over 25 telecom operators choosing the Entone video gateway solution, Entone has emerged as a clear market leader. We are especially excited about the Entone product roadmap of media hub solutions developed to enable service operators to offer a new generation of television services that seamlessly blend broadcast television, time-shifted viewing, place-shifted viewing, Web-based services, and personal media."

Entone bills its flagship product, the Hydra IP Video Gateway, as eliminating the need for set-top boxes and new home wiring in order to deliver IPTV services. The company also offers media hub products that integrate advanced services with the Hydra gateway, including Web-based video, the ability to view photo libraries and other personal content on the TV, whole-home PVR, and TV place-shifting.

NDS Reports Higher Annual Revenues, Higher Income

Interactive TV and conditional access technology provider, NDS--which is in the process of being taken private via a deal that will see News Corp. retaining a 49% stake in the company and investment firm, Permira, taking a 51% stake--has released financial results for its fiscal year, ended June 30th:

• Revenues totaled $850.1 million, compared to $709.5 million for the previous fiscal year--an increase of 20%. Revenues from the company's conditional access technologies were up 17% over the previous fiscal year, revenues from license fees and royalties were up 12%, and revenues from new technologies were up 40% (primarily due, the company said, to "higher revenues from our DVR technologies, advanced middleware, IPTV, gaming applications and residential gateway devices").
• Operating income totaled $195.4 million, compared to $160.4 million for the previous year--an increase of 21.8%.
• Net income totaled $160.1 million, or $2.72 per diluted share, compared to $135.7 million, or $2.33 per diluted share, for the previous year.
• The company's middleware was deployed in 30.7 million devices during the fiscal year, compared to 18.2 million during the previous fiscal year. At the end of the fiscal year, it had been deployed in a total of 92.5 million devices, compared to 61.8 million at the end of the previous year.
• The company's DVR clients were deployed in 5.8 million devices during the fiscal year, compared to 3.8 million during the previous fiscal year. At the end of the fiscal year, they had been deployed in a total of 13.1 million devices, compared to 7.3 million at the end of the previous fiscal year.
• The company's conditional access software was deployed in 14.9 million net new devices during the fiscal year, compared to 10.4 million during the previous fiscal year. At the end of the fiscal year, it had been deployed in 90.3 million devices, compared to 75.4 million at the end of the previous fiscal year.
• At the end of the year, the company's cash and cash-equivalents totaled $735 million.

"NDS has completed another year with strong results on all our key metrics, subscriber growth, middleware and DVR shipments, and strong performance of our Orbis subsidiary," NDS chairman and CEO, Abe Peled, said in a prepared statement. "Our fiscal 2008 performance has benefited from continued strong execution and key new customer wins. Of particular note are our successful penetration of the German cable and satellite market, and our wins in India and Malaysia. We also extended the terms of our CA contracts with our largest customers. Our reported performance benefited overall from the continued weakness of the US dollar. Unfortunately, as we look into fiscal 2009, the continuing strength of the Israeli shekel will make fiscal 2009 a very challenging year. We plan to invest in our business in order to continue to provide first-rate technology and support to our customers in their current business, as well as to prepare for the challenges and opportunities presented by the rapid penetration of broadband and the changing viewing patterns it makes possible."

OpenTV Posts Higher Revenues, Breaks Even

Interactive TV middleware and advanced advertising technology provider, OpenTV, has released its second-quarter financial results:

• Combined revenues totaled $26.8 million, compared to $23 million for the year-ago quarter. Royalties and licenses revenues increased 29% to $18.2 million; while services and other revenues declined 3% to $8.6 million.
• Revenues from the company's Middleware Solutions segment totaled $23.5 million, compared to $20.2 million for the year-ago quarter. The segment's contribution margin was $8 million, compared to $4.5 million for the year-ago quarter.
• Revenues from the company's Advertising Solutions segment totaled $3.3 million, compared to $2.8 million for the year-ago quarter. The segment's contribution margin was $0.2 million, compared to a loss of $0.3 million for the year-ago quarter.
• Adjusted EBITDA (before unusual items) was $2.5 million, compared to a loss of $1 million for the year-ago quarter.
• Net income was breakeven, compared to a loss of $4.8 million, or $0.04 per share, for the year-ago quarter.
• At the end of the quarter, the company had a balance of $31 million in deferred revenue, compared to $24.1 million at the end of 2007.
• At the end of the quarter, the company's cash, cash-equivalents and short- and long-term marketable debt securities totaled $100.4 million, compared to $81.8 million at the end of 2007.

"Our financial results for the second quarter and first half of 2008 demonstrate the successful execution of our plan to grow our core business while improving costs and profitability," OpenTV CEO, Ben Bennett, said in a prepared statement. "We have continued to grow our global middleware market share as we work to deepen relationships with existing customers as well as acquire new customers and enter new markets, including a recent significant customer win in Japan. On the advanced advertising side, our EclipsePlus product is beginning to be deployed by leading operators. Overall, we are on track with our plans for the year."

SeaChange Posts Higher Revenues, Swings to a Profit

VOD technology provider, SeaChange International, has released financial results for its fiscal second quarter (2009), ended July 31st:

• Combined revenues totaled $50.7 million, compared to $44.2 million for the year-ago quarter.
• Revenues from the company's Software segment totaled $32 million, representing a 17% increase over the year-ago quarter. The company said that the revenue growth was driven by higher advertising-insertion revenues from North American service providers, which were the result of increased HD television channel requirements. In addition, it said, higher license and maintenance revenues for its SeaChange Axiom software, derived primarily from North American cable and telco customers, contributed to the segment's growth.
• Revenues from the company's Servers and Storage segment totaled $14.9 million, representing a 20% increase over the year-ago quarter. The company attributed the growth to increased VOD server shipments to several domestic customers and to higher installation and maintenance revenues related to increased year-over-year server deployments.
• Revenues from the company's Media Services segment totaled $3.9 million, representing a $0.6 million decline from the year-ago quarter. The company attributed the decline to non-recurring professional services revenue generated in the year-ago quarter.
• Net income totaled $1.5 million, or $0.05 per share, compared to a net loss of $7.9 million, or $0.27 per share, for the year-ago quarter (note: the company said that last year's Q2 loss included $6 million, or $0.20 per share, of expenses related to severance charges in connection with headcount reductions and impairment charges related primarily to capitalized software licenses).
• At the end of the quarter, the company's cash, cash-equivalents and marketable securities totaled $78.1 million and no debt, compared to $79 million and no debt at the end of the first quarter. The company said that net income and non-cash expenses of $4.6 million, along with improvements in working capital, were offset by capital expenditures of $7.2 million in the second quarter; it said that those capital expenditures were due primarily to a facility purchase for its Media Services operation and to its repurchase of 551,000 shares at a cost of $4 million under its previously announced stock buyback program.

"We exceeded $50 million in quarterly revenue for the first time in the company's history on continued strong North American service provider spending for VOD server and software products," SeaChange president and CEO, Bill Styslinger, said in a prepared statement. "We're particularly pleased that the first commercial deployment of flash memory servers by two of our largest North American cable television customers significantly contributed to our VOD server revenue this quarter. Solid, top-line performance, improved margins and control of operating expense growth all contributed to the company's fourth consecutive quarter of profitability. We aggressively redeployed cash generated during the second quarter by repurchasing $4 million of the company's stock, in addition to the facility purchase. Our cash position at the end of the second quarter, however, was essentially unchanged from the first quarter demonstrating the cash-generation power of our business." Styslinger also provided some guidance for the remainder of fiscal 2009: "We continue to expect that revenue for all of fiscal 2009 will be approximately 10% higher than fiscal 2008 revenue and that we will be profitable for the second half of the year," he said. "Our confidence in our financial expectations for the rest of fiscal 2009 lies in continued strong spending on VOD and advertising insertion software-related products by our core North American cable and telephone customers, as well as continued focus on controlling our selling, general and administrative expenses."

Concurrent Reports Lower Revenues, Higher Losses for Fiscal Q4

VOD technology provider, Concurrent, has released financial results for its fiscal fourth quarter and year, ended June 30th:

• Overall Q4 revenues totaled $17.6 million, compared to $21.1 million for the year-ago quarter and $19.4 million for the preceding quarter.
• Q4 revenues from the company's VOD product line totaled $10.1 million, compared to $14 million for the year-ago quarter and $12.1 million for the preceding quarter.
• Q4 net losses totaled $1 million, or $0.12 per fully diluted share, compared to net losses of $712,000, or $0.01 per fully diluted share, for the year-ago quarter and net income of $301,000, or $0.04 per fully diluted share, for the preceding quarter.
• Overall fiscal 2008 revenues totaled $70.8 million, compared to $69.1 million for the previous fiscal year.
• Fiscal 2008 revenues for the company's VOD product line totaled $41.6 million, compared to $43.3 million for the previous fiscal year.
• Net income for fiscal 2008 totaled $265,000, or $0.03 per fully diluted share, compared to a net loss of $12.2 million, or $1.67 per share, for the previous fiscal year. According to the company, the improvement was driven by increased revenues and gross margins, as well as by net proceeds of around $3.3 million from one-time recoveries from Vicor and C-COR.
• At the end of fiscal 2008, the company's cash position totaled $27.4 million, compared to $20.4 million at the end of the previous fiscal year. The company said that the increase was driven by its recoveries from Vicor and C-COR.

"We believe the company is on track to deliver profitable revenue growth," Dan Mondor, Concurrent's recently appointed president and CEO, said in a prepared statement. "The year-over-year results are the best measure of the progress we have made. We generated over $7.5 million in cash from operating activities during the year, significantly improved gross margins and grew the top line. Although our business slowed in the fourth quarter due to the timing of customer orders, taking everything into account, 2008 was a year of great progress. We will continue to focus on the execution of our business plan and strengthening the business."

Industry
Copyright-Infringement Lawsuit against Veoh Dismissed
MTV Networks Acquires Social Networking Firm, Social Project
Starz Closes Vongo, Will Focus on Wholesale Offering, Starz Play
CableLabs CEO, Richard Green, to Step Down
Next New Networks Names Lance Podell CEO
BitTorrent Raises $17 Million

Technology
Panasonic Demo's Comcast-Connected tru2way TV Set at CEDIA
ZeeVee Begins Shipping ZvBox Internet-to-TV Device
eventIS, sofatronic Partner on Blu-ray VOD Solution
--Virgin Media Taps eventIS for Metadata Management
--eventIS in VOD Deals with ESR, TOYA, VOO, Axel Springer
MySpaceTV Launches Direct Video Record and Upload Functionality
--Streams Episodes of "Sorority Forever"
blinkx Launches Browser-Based Version of its Broadband TV Service
--Offers $40 Million for Advertising Firm, Miva
Harmonic Launches StreamLiner 2000 Flash-Memory VOD Server
Channels.com Launches Web Video Feed Aggregator

Content
Amazon.com Launches TV Show Stores
Hulu Adds More Features, Including Discussion, Genre-Based Channels
ViTrue in Social Media Deals with Ben & Jerry's, Tour of Missouri
Comedy Central Relaunches ColbertNation.com with 2,800+ Videos
Warner Bros. Launches Broadband Video Site, TheWB.com
Netflix in Broadband Video Deals with CBS, Disney
CinemaNow, Winbox Partner to Bring Broadband Video to TV Sets
Invision.TV Launches EPG for Broadband Video
Univision's "Sabado Gigante" Offering Mobile- and Web-Based Interaction
FX Launches Mash-Up Promotion for "It's Always Sunny in Philadelphia"



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