Microsoft To Acquire Peach Networks
Microsoft Corp. today announced it has reached an agreement to acquire Israel-based Peach Networks Ltd., a leading provider of technology for enhanced TV services for digital television. This agreement extends the Microsoft® TV platform to now include a solution for basic digital set-top boxes (STBs), like the Scientific Atlanta Explorer 2000 and Motorola DCT 2000 currently being deployed by cable operators. This alliance will help expand the overall availability of enhanced TV services worldwide. With the inclusion of Peach's technology, Microsoft can offer the most scalable enhanced TV platform solution in the industry. The acquisition underscores Microsoft's commitment to support a breadth of new enhanced TV services such as information on demand, e-mail, communications, Internet, shopping and entertainment applications to all digital television network operators and their customers.
"Peach Networks contributes breakthrough technology and a world-class team to Microsoft and will extend the Microsoft TV platform to support more types of digital set-top boxes," said Jon DeVaan, senior vice president, Microsoft Consumer Group. "With the Microsoft TV platform, network operators worldwide can bring enhanced TV services to their customers using both existing digital set-top boxes and future advanced digital set-top boxes."
Peach Networks' television technology provides operators with an economical way to deliver new content and services to consumers via the existing network infrastructure. This unique, patent-pending technology enables network operators to achieve maximum value from their investments, offer added services to subscribers - interactive services, Internet access, e-mail and instant messaging - and economically generate new revenue opportunities using the digital cable set-top boxes currently in deployment.
"We are thrilled to become a part of Microsoft's leading initiative to offer interactive TV services for digital set-top boxes," said Ofir Paz, president and chief executive officer of Peach Networks. "Our vision has been to provide solutions that bring interactive content to cable TV subscribers by providing network operators with an affordable means to offer new content to subscribers. We believe our vision maps nicely to Microsoft's TV strategy."
Most Scalable Solution for Digital Set-Top Boxes
Peach Networks' innovative technology, coupled with the Microsoft TV software platform, will enable shared services between basic digital STBs being deployed today and advanced STBs of tomorrow. Current digital set-top boxes, which analysts estimate will be used by 4 million* U.S. subscribers by the end of this year, were designed years ago, when Internet-based services were not expected to be as significant for TV viewers. The Peach technology enables PC servers to deliver new services to these current set-top boxes without wasting network bandwidth. Advanced set-top boxes will be able to access the same content and services, providing a basis for branded interactive services and advertising to reach all digital set-top consumers.
"Microsoft has been evaluating technology solutions for digital set-top boxes for years, and until now we haven't found a solution that scales to the levels our network partners demand," said Phil Goldman, general manager of the Microsoft TV Platform Group. "Peach's offering excels over all other solutions we evaluated and is the best in this space to deliver scalable Internet and interactive services to digital set-top boxes.