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Ericsson Technology Picked by SkyLife for UHDTV Expansion
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Network equipment and software provider Telefonaktiebolaget LM Ericsson (publ) (ERIC - Free Report) was recently selected by South Korea’s premium satellite pay TV provider -- KT SkyLife -- for the expansion of its Ultra High Definition (“UHDTV”) service. The company is dedicatedly focusing on strengthening its foothold in the broadcasting and media industry and the recent contract win underlines its growing presence in the industry.
KT SkyLife’s Fifth UHD Channel
KT SkyLife plans to deploy Ericsson’s state-of-the-art HEVC (High Efficiency Video Coding) encoders that enhance picture quality by up to 15%--20% while using less bandwidth. Meanwhile, this offers a revolutionized television viewing experience to viewers. The company’s encoders feature advanced compression capabilities that optimize video quality and support video compression and pre-processing improvements in compression standards like MPEG-2, AVC and HEVC.
Ericsson plans to implement AVP 4000 System Encoders and MX8400 Multiplexers along with its latest compression solution for KT SkyLife. Meanwhile, KT SkyLife expects Ericsson’s technology to help it forge ahead with its plans of improving high-definition TV and 3D broadcasting services and outshining peers in optimized commercial UHDTV services. Being a long time client of Ericsson, KT SkyLife is launching its fifth UHD channel which will enable it to offer the highest number of UHDTV channels in Korea.
Meanwhile, Ericsson has scaled to a dominant position in the UHD encoders and transcoders market which has compelling prospects. According to Ericsson’s ConsumerLab 2015 report, 41% consumers believe that 4K or UHD quality is the future of the TV and media industry.
Ericsson’s Media Business
Though TV providers are striving to transform consumer’s television viewing experience, there is dearth of suitable compression technology that posses the stability and flexibility to sustain advanced developments. Ericsson’s novel video compression solutions cater to such needs. The company has seen steady growth in the European media market, successfully establishing itself as a prominent player offering metadata, images, search and recommendations in about 3,000 TV channels in over 30 languages.
During the fourth quarter of 2015, the company completed the buyout of software-based video encoding company Envivio to enhance its competitive position in the TV and Media industry. Also, during the first quarter of 2016, Ericsson announced plans to acquire Texas-based digital cable and satellite television network, FYI Television. Moreover, Ericsson inked a “managed services agreement” with Poland’s leading digital cable TV and broadband service provider -- UPC Poland.
Despite these positives, stiff competition and currency fluctuations are significant headwinds. Also, waning mobile broadband sales in some key end-markets, slowdown in 4G deployment in China and ongoing industry consolidation among customers and major rivals are compounding the challenges of the Zacks Rank #4 (Sell) company.
Better-ranked stocks in the industry include Ubiquiti Networks, Inc. , Sonus Networks, Inc. and Clearfield, Inc. (CLFD - Free Report) . While Ubiquiti Networks sports a Zacks Rank #1 (Strong Buy), Sonus Networks and Clearfield carry a Zacks Rank #2 (Buy).
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Ericsson Technology Picked by SkyLife for UHDTV Expansion
Network equipment and software provider Telefonaktiebolaget LM Ericsson (publ) (ERIC - Free Report) was recently selected by South Korea’s premium satellite pay TV provider -- KT SkyLife -- for the expansion of its Ultra High Definition (“UHDTV”) service. The company is dedicatedly focusing on strengthening its foothold in the broadcasting and media industry and the recent contract win underlines its growing presence in the industry.
KT SkyLife’s Fifth UHD Channel
KT SkyLife plans to deploy Ericsson’s state-of-the-art HEVC (High Efficiency Video Coding) encoders that enhance picture quality by up to 15%--20% while using less bandwidth. Meanwhile, this offers a revolutionized television viewing experience to viewers. The company’s encoders feature advanced compression capabilities that optimize video quality and support video compression and pre-processing improvements in compression standards like MPEG-2, AVC and HEVC.
Ericsson plans to implement AVP 4000 System Encoders and MX8400 Multiplexers along with its latest compression solution for KT SkyLife. Meanwhile, KT SkyLife expects Ericsson’s technology to help it forge ahead with its plans of improving high-definition TV and 3D broadcasting services and outshining peers in optimized commercial UHDTV services. Being a long time client of Ericsson, KT SkyLife is launching its fifth UHD channel which will enable it to offer the highest number of UHDTV channels in Korea.
Meanwhile, Ericsson has scaled to a dominant position in the UHD encoders and transcoders market which has compelling prospects. According to Ericsson’s ConsumerLab 2015 report, 41% consumers believe that 4K or UHD quality is the future of the TV and media industry.
Ericsson’s Media Business
Though TV providers are striving to transform consumer’s television viewing experience, there is dearth of suitable compression technology that posses the stability and flexibility to sustain advanced developments. Ericsson’s novel video compression solutions cater to such needs. The company has seen steady growth in the European media market, successfully establishing itself as a prominent player offering metadata, images, search and recommendations in about 3,000 TV channels in over 30 languages.
During the fourth quarter of 2015, the company completed the buyout of software-based video encoding company Envivio to enhance its competitive position in the TV and Media industry. Also, during the first quarter of 2016, Ericsson announced plans to acquire Texas-based digital cable and satellite television network, FYI Television. Moreover, Ericsson inked a “managed services agreement” with Poland’s leading digital cable TV and broadband service provider -- UPC Poland.
Despite these positives, stiff competition and currency fluctuations are significant headwinds. Also, waning mobile broadband sales in some key end-markets, slowdown in 4G deployment in China and ongoing industry consolidation among customers and major rivals are compounding the challenges of the Zacks Rank #4 (Sell) company.
Better-ranked stocks in the industry include Ubiquiti Networks, Inc. , Sonus Networks, Inc. and Clearfield, Inc. (CLFD - Free Report) . While Ubiquiti Networks sports a Zacks Rank #1 (Strong Buy), Sonus Networks and Clearfield carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>