Looking to boost its new cloud-based service for TV providers, TiVo has bought video discovery/search company Digitalsmiths for $135 million.
The acquisition of the North Carolina-based
company, which has cloud-based services, will aid TiVo in packaging its new cloud-based program storage service -- which include a cloud DVR, also known as network DVR -- to cable, satellite and telco
TiVo announced the new effort at the Consumer Electronics Show in early January.
Digitalsmiths has existing TV provider customers that will expand TiVo current
roster of clients, and has relationships with 7 of the top 10 U.S. pay TV companies -- 64% of U.S. pay TV consumers.
Some of Digitalsmiths’ clients/partners include Time Warner Cable,
Cisco Systems, Warner Bros., Paramount, Technicolor, Univision, Roku, Xbox, Sony PlayStation, Sharp, Turner Sports, the National Basketball Association, the PGA, NASCAR, zeebox, i.TV, and
TiVo executives have said the new network DVR units can be used in many configurations including storing unique copies of content for consumers, offering an
archive of TV and movie programming content, or as the backbone for video-on-demand services, among other formats.
Speaking at the CES, Jeff Klugman, executive vice president/general
manager of products and revenue for TiVo, said: “Ultimately, given the opportunity and given the reduction and the need to put expensive CPE [customer-premises equipment] in the home, it will be
cheaper to consolidate storage and use the cloud.”