Espial agreed to acquire Kasenna. Espial is based in Ottawa, Canada with major offices in the United States, United Kingdom, Germany, China, and Japan. Espial provides IPTV middleware and applications software. Kasenna is California based and provides video on demand systems as well as its own middleware software. The transaction is expected to close about July 9, 2008.
Espial has been working to move up the chain and become a prominent IPTV systems provider. KasennaIas was a spin off that has been providing video on demand systems for many years and also made a significant involvement. While Kasenna’s strong market presence and this acquisition will increase Espial’s presence in the market, it still has a lot of work to do.
May 2008 – Deutsche Telekom revealed in its Q1 results 38,000 subscribers were added to its “T-Home Entertain” IPTV service, reaching a total of 154,000.
Sales of DSL lines reached 539,000 in the first three months of this year, and Deutsche Telekom reports that it now accounts for around 43% of growth in the German broadband market.
Deutsche Telekom total net revenue for the first quarter of 2008 reached €15bn, representing a year-on-year decrease of 3.1% due to a fall in revenue from the Broadband/Fixed Networks and Business Customers segments. Net profit for the same period reached €0.9bn, compared to €0.4bn in the same period of last year.
Deutsche Telekom seems to be struggling with IPTV as they previously stated that they had 150K subscribers signed up at the end of 2007.
An option to look at is bundling a standard set of IPTV channels into its basic broadband service. This will be straightforward for ADSL-2+ customers but more tricky for VDSL users. It could use ADSL-2+ for the standard offering and VDSL for premium customers.
This approach has worked very well in France. Telia Sonera’s IPTV service really took off only after it included IPTV channels in its basic offering. In Australia, we are gradually seeing more and more IPTV services from ISP’s such as iiNET - Premier League games; and TPG - an array of international channels.