Chinese telecoms equipment vendor UTStarcom has acquired a 44% stake in a US firm called aioTV, which has developed a cloud-based video aggregation and distribution platform that combines conditional access and content management tools.
The deal gives UTStarcom access to technology that will bolster its rollout of subscription-based value-added media services, while giving aioTV a partner with whom to offer its technology in emerging markets in Asia.
aioTV’s middleware platform is designed to enable network operators to aggregate multiple sources of content into a consistent TV-like experience across connected devices.
The technology locates and aggregates Internet and licensed video content metadata and delivers a common experience and content to viewers on a range of connected devices – any device that supports an HTML5 environment.
aioTV currently works with many consumer electronics makers, cable and telecommunications service providers and broadcast partners in North America, South America, Europe and the Middle East to provide their middleware platform to millions of customers.
The company’s management team, led by CEO Michael Earle and COO Jim Anderson, will remain in place and will continue to set and execute aioTV’s strategy and product development initiatives.
UTStarcom recently completed the divestiture of its IPTV business announced last July, creating a privately-held standalone business to be helmed by outgoing CEO Jack Lu.
UTStarcom posted total revenues across all operations of US$ 56.5mn for the second quarter of this year, down 18% on an annual basis, while gross profits also fell 18% to US$ 21.7mn.