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Both Comcast Corp. (CMCSA - Analyst Report) and Time Warner Cable Inc. (TWC - Analyst Report) have collaborated to form RDK Management, LLC. The newly-formed entity will look after the Reference Design Kit (RDK) applications, which are generally integrated in next-generation set-top boxes.

Initially RDK application was manufactured and licensed by Comcast in order to develop a common platform for installing tru2way, IP or hybrid set-top boxes and gateway devices. Moreover, the RDK tool also supports the rollout of advanced video services through CableLabs OCAP Reference Implementation software and other open source platforms.

Thus, Comcast will transfer all the RDK related tools, intellectual property rights, licenses and associated contracts to the new entity. RDK Management will offer RDK licensing, community support and training and code management support. Moreover, it will also offer an extended back-up program to deliver technical support to RDK licensees.

Comcast started offering RDK software from 2012. Within one year, RDK tools have gained popularity among different OEMs, Systems Integrators, SOCs and software vendors. More than 100 such clients have joined the RDK community, which will help each other to share a common platform in developing multi-screen TV home entertainment experiences for its end customers.

Growing demand of low cost video streaming services from Netflix Inc. (NFLX - Analyst Report) and Hulu coupled with higher retransmission fees from large networks companies like Time Warner Inc. (TWX - Analyst Report), Viacom , Disney (DIS - Analyst Report) and CBS (CBS - Analyst Report) have forced these cable MSOs to counter competition.

Currently, Comcast carries a Zacks Rank #3 (Hold).

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