IPTV Programming Featured Article

Onstream Media Corporation, an online service provider of live and on-demand Internet video, corporate Web communications and content management applications, today signed a merger agreement to acquire Narrowstep, the “TV on the Internet Company” and the provider of Internet TV and Internet Protocol Television (IPTV) services.

 

Officials say they expect that Narrowstep’s automated IPTV (News - Alert) platform, Telvos, and Onstream’s Digital Media Services Platform (DMSP) will form a single comprehensive platform with an ability to acquire, store, manage, process, protect, monetize and deliver digital broadcast quality video to TVs, computers, iPods and mobile phones.

 

Onstream Media’s DMSP is designed to provide customers with cost-effective tools for encoding, managing, indexing and publishing content via the Internet, company officials say.

Narrowstep’s automated technology provides the functionality to recreate a television-like experience on the desktop computer screen and the ability to integrate with the new set top boxes and other IPTV technologies, company officials say.

 

Features include: playlist functions; channel management; monetization tools such as automated ad serving, e-commerce, and payment processing options to manage video-on-demand, pay-per-view, download and subscription models; customizable player technology, such as cross-platform and cross-browser support and graphical user interface (GUI)-rich community functions utilizing Microsoft (News - Alert) Silverlight technology; digital rights management (DRM) such as geographic restrictions; complete content syndication capabilities; and distribution tools such as search-engine optimization, automated RSS feeds and embedded video technology.

“Since the founding of Onstream Media, our strategic direction has been predicated on capitalizing on the integration of video-on-the-Web and broadcast television, making Web-based programming indistinguishable from over-the-air, cable or satellite-originated programming,” said Randy Selman, president and chief executive officer of Onstream Media.

 

He added: “With the addition of Narrowstep, we now have a full suite of enabling technologies to address this emerging market requirement. We believe that the combination of Narrowstep’s automated IPTV platform and Onstream’s advanced capabilities in meta-tagging, optimization, indexing and classification will solidify our leadership position within the industry making Onstream even more attractive to a wide-range of potential partners, including telecom, satellite and cable companies, and hardware vendors. We are very excited about the opportunities before us.”

 

Mr. David C. McCourt, chairman and interim chief executive officer of Narrowstep, said he’s confident in Narrowstep’s efficient Internet TV technology, as well as its tools for monetizing content on the Web.

 

“The synergies that we expect to be realized between Narrowstep’s best-of-breed technology and Onstream’s product set and thousands of corporate customers is expected to create a complete Internet-media solution and winning combination for customers, employees and shareholders of both companies,” McCourt said.

As per the new agreement, the shareholders of Narrowstep will receive 11.1 million shares of Onstream Media common stock and an opportunity to earn up to an additional 8.9 million Onstream Media shares, company officials say, subject to Narrowstep achieving substantial revenue growth targets during the 18 months following the acquisition.

 

The acquisition is expected to close as soon as the shareholders approve the process, company officials say. Both companies will execute an immediate restructuring to reduce or eliminate substantial costs related to Narrowstep’s facility leases, SG&A expenses, public company and headquarters costs, and other professional fees and services. This will result in generating operating cash flow for Narrowstep after the closing, they say.

 

Selman said: “This acquisition will not only expand our already deep technological offering, but will also enable us to sell our products through a talented, established sales group in Europe along with the added capability to cross-sell Narrowstep’s products and services through our existing sales channels domestically. Since Narrowstep’s team is familiar with digital media products and services, we anticipate a rapid integration.”