updated 11:12 am EDT, Mon April 8, 2013
Sale will allow Microsoft to concentrate on Xbox TV efforts
Microsoft has sold its IPTV business to Ericsson for an undisclosed amount. The sale of Mediaroom, previously reported to have been discussed in private, will in theory allow Microsoft to pour more of its resources into providing consumer-side TV services through the soon-to-be announced next Xbox games console.
Mediaroom provides the services behind the U-Verse IPTV service from AT&T, among others, and powers 22 million set-top boxes in 11 million subscriber households in the United States, according to a company blog post. A separate statement from Ericsson claims the acquisition makes the company the market leader of IPTV and multi-screen services, with a 25-percent market share. The IPTV market is estimated to hit 76 million subscribers and $32 billion in revenues by the end of 2013, rising to 105 million subscribers and revenues of $45 billion by 2015.
Currently, Microsoft has over 76 million Xbox 360 consoles sold globally, and 46 million Xbox Live subscribers. A vast number of Live subscribers are able to use the various streaming video services that are currently offered on the Xbox, through service-specific applications. By offloading Mediaroom, Microsoft can now work on expanding the on-demand and live-TV offerings these apps offer, by working with other content producers to create new services.
If Microsoft is to add more video-based services to its platform, it may choose to reveal its future plans at the May 21st event, said to be the reveal-date for the next Xbox.