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Impact of Ericsson's Acquisition of Microsoft Mediaroom on the Global Digital TV Market

May 20, 2013 / Claire Lin

10 Page, Radar

US$650 (Single User License)

Abstract

In April 2013, Ericsson announced it had struck a deal with Microsoft to buy its Mediaroom IPTV business, the world's most widely deployed IPTV middleware with a 15% market share and key accounts including AT&T and Deutsche Telekom. On the one hand, Microsoft's intention to sell this business has sparked great curiosity. On the other hand, what impact will the acquisition have on Ericsson, the world's leading telecom equipment supplier, in terms of its existing IPTV solutions, telecom customer growth, and competition status, besides gaining Mediaroom's market share, also remains to be seen. This report discusses both Microsoft and Ericsson's motivation behind this deal and examines the influence of the deal on future digital TV market development.

Table of Contents
1. Microsoft's Motivation to Sell Mediaroom
1.1 IPTV Solutions Gone Astray from Microsoft's Core Business
1.2 Limited Future Growth Potential
1.3 Focus on Xbox for New Digital TV Platform
2. Motivation and Strategies Behind Ericsson's Acquisition of Mediaroom
2.1 Strengthening Ericsson IPTV Solutions
2.2 Enhancing Customer Relationships and Competitive Edges
3. Conclusion
Appendix

List of Topics

Motivation behind Microsoft's decision to sell Mediaroom, touching on several factors that led to such decision
Motivation behind Ericsson's decision to buy Microsoft's Mediaroom, specifying its anticipated goals
Ericsson's strategies behind its purchase of Microsoft's Mediaroom and the implications of such deal for the global digital TV development
Companies and organizations analyzed or mentioned in the report include:
Alcatel-Lucent, Apple, AT&T, Bell Aliant, BT, Cisco, Comcast, Deutsche Telekom, Ericsson, Google, Guangzhou Digital Media, HP, Huawei, Microsoft, Motorola, NSN, Pace, Portugal Telecom, SingTel, Swisscom, Tandberg Television, Technicolor, Telefonica, Telus, Verizon, Vodafone, ZTE

List of Figures
Figure 1 Future Development Course of Microsoft and Ericsson

List of Tables
Table 1 Mediaroom's Major Telecom Customers and Number of Subscribers
Table 2 Comparison of Ericsson's IPTV Solution and Microsoft's Mediaroom Solution

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