French media technology conglomerate Technicolor has agreed to purchase Cisco's customer premises equipment (CPE) division for $602 million, a move delivers a second burst of consolidation to the fast-declining pay-TV set-top industry.
In the 2000s, global sales of pay-TV set-tops boomed, as operators raced to keep up with consumer demand for digital video recorders, HD and digital cable. But all winning streaks eventually come...
The once fast-growing pay-TV set-top market is changing fast. And for set-top manufacturers, it's not for the better, as the forces of operator consolidation and pay-TV market maturity, as well as the emergence of cloud-based video distribution systems, begin to take their toll.
Merging the world's two largest set-top makers, Arris' $2.1 billion acquisition of Pace offers insulation from a volatile U.S. pay-TV market, as well as the unpredictable revenue streams of the disparate CPE product cycles, analysts say.
Set-top maker Arris has agreed to acquire its competitor Pace for $2.1 billion in stock and cash. The deal will provide Arris will an entry into the satellite business as well as beef up its customer base. The newly merged company will be incorporated in the U.K. but its headquarters will remain in Suwanee, Ga.
Set-top vendor Pace said Thursday that it generated $190 million in adjusted EBITA last year, which was a 20 percent gain compared to the cash flow it generated in 2012.
Mediacom Communications said Monday that it will soon deploy a media gateway from Pace that runs TiVo's user interface.
Pace surpassed longtime set-top market leader Cisco in market share during the second quarter, according to a report released Wednesday by Infonetics.
Alaskan triple-play provider GCI said Tuesday that it is expanding the rollout of DVRs running TiVo software to Kenai and Soldotna, using Pace's XG1 home video gateway.
A variety of set-top box vendors believe that their products still have a place in the consumer home entertainment space, although, most concede, that place is changing, according to a survey conducted by Euromedia.