Ericsson (ERIC - Free Report) recently disclosed the commercial availability of its next-generation Pay TV platform, Ericsson MediaFirst. However, following this news, the shares of this telecommunication giant dipped marginally (0.6%) during the regular trading session on Sep 11, probably on broader market concerns.
Ericsson MediaFirst is a cloud-based wide-ranging service and delivery platform for the development, management and delivery of next-generation Pay TV. In order to offer the operators a persisting stream of new innovations, Ericsson MediaFirst adapts agile development principles and practice and caters to the business-to-business-to-consumer TV platform requirements.
The platform, which embodies modern cloud-based architectures, aids operators and content providers in offering uninterrupted and highly personalized TV experiences to their customers. Armed with industry-leading capabilities in Multiscreen IPTV, ABR delivery, content management and cloud DVR, Ericsson’s newest offering is highly capable of offering reliable and persuasive experience to Pay TV viewers.
Talking about the origin, Ericsson MediaFirst was introduced in 2014 and since then had been under trails by some targeted operators. Encouragingly, one of the leading Canadian telecommunications company – TELUS Corporation (TU - Free Report) – has successfully concluded an initial trail of Ericsson’ Pay TV platform and intends to deploy it to boost its Optik TV services.
We are impressed with the latest offering of Ericsson aimed at revolutionizing the TV viewing experience of the world. MediaFirst, which is a key part of the Ericsson media solutions portfolio, further intensifies the company’s thriving position in the media industry.
Of late, Ericsson has been strategically focusing on diversification, by strengthening its core enterprise as well as growing its adjacent business. Most recently, the company inked a definitive agreement to acquire software-based video encoding company Envivio for roughly $125 million or $4.10 per share to enhance its competitive position in the TV and Media industry.
As Ericsson’s TV & Media business was hit by lower software licensing sales in second-quarter 2015, we believe such efforts are a strategic fit, reinforcing the company’s position in the broadcast market and driving maximum growth in the long run.
Ericsson currently sports a Zacks Rank #2 (Buy). Harris Corp. is another better-ranked stock in the same industry, having a Zacks Rank #1 (Strong Buy).
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