Cisco has bought content management systems firm ExtendMedia to strengthen its position in the IP video market.
The firm said acquiring ExtendMedia would allow it to offer service providers a more customizable IP content platform, by leveraging the privately-backed US firm’s content delivery and payment software, and advertising-based business models.
Boston-headquartered ExtendMedia is backed by private equity investors including Venrock, Atlas Venture and TVM Capital, and counts AT&T, Bell Canada, Showtime and NBC among its customers.
Cisco expects the deal to be complete during the current fiscal period, which ends on January 31.
Enrique Rodriguez, head of Cisco’s service provider video technology division, said it was gearing up to meet growing demand for IP-based content as “consumers expect multi-screen engagement,” and service providers upgrade infrastructure to “manage and deliver video to any device.”
The TV and video markets are changing as more consumers access content on demand, Kip Compton, a Cisco general manager, told Multichannel News.
Recent Ericsson research found that 50% of TV viewers access web content on demand every week, and that new distribution channels have fueled consumer’s appetite for a personalized on demand service.
Cisco’s stock fell 2.4% on Nasdaq Thursday, recovering 0.34% in after-hours trade to close at 20.77.