U.S. telecom giants Cisco Systems and AT&T Corp. are putting 15.5 million behind Internet video company Akimbo, the
Financial Times said Monday. The investment underscores the big shift among
big media firms toward online services, and video in particular. Blueprint Ventures, a VC group that was involved in the deal, said Akimbo offers "an excellent" video channel--one that is "way out in
front in terms of technology." Having a solid technology is definitely one thing, but distribution--especially since media firms still dominate mass media consumption and are looking for distribution
online--is the other great piece of the puzzle for many Web video firms. Akimbo has deals with Major League Baseball, Arts & Entertainment TV, The History Channel, and the BBC. It has cross-platform
distribution on Microsoft's Media Center PC and other devices from Thomson--and now, AT&T. The company is also pursuing a deal involving Cisco's recently acquired set-top box maker Scientific Atlanta,
which is also looking to boost its digital home offerings. Cisco said it decided to invest in Akimbo because it believes companies that can deliver content on any device through an Internet connection
represent the future of media consumption. "The more of that kind of content that flows over networks, the better it is for Cisco," a Cisco rep said.
Read the whole story at Financial Times »
