For those who haven’t heard the news, we announced at the ANGA Cable Trade Fair in Cologne, Germany, that we’ve acquired our Dutch counterparts Avinity Systems. This brings together the two biggest providers of cloud-based interactive TV platforms and applications.
Beyond the usual back-slapping, self-congratulatory platitudes that accompany any such announcement, there’s a powerful underlying reason for this acquisition: the United States does not hold a monopoly on the idea of interactive television and the rest of the world is not necessarily following the same rote path to an end product that we are in the States.
In the U.S. we believe in standards such as those being set by the cable industry with EBIF and tru2way and other methodologies being developed by CableLabs. It makes sense for the industry to have a standardized approach and it makes sense for any vendor to bend to those standards.
The Europeans and the rest of the world have a different, more fragmented way of looking at things. Avinity, while starting to make a move into the U.S. market – and don’t think we didn’t notice that – is expert in the ways of international standards and measures. It’s the sort of experience you can’t get overnight but, thanks to capitalism, you can buy.
Our research shows that the world believes in interactive television but is somewhat stymied by fragmented set-top box issues that tend to slow innovation. This is exactly the kind of thing that works well for a cloud-based television provider like ourselves because we can work outside the box, so to speak.
In short, the rest of the world, which leads in so many mobile technology areas, is about a year behind the U.S. when it comes to interactive television and that presents an outstanding opportunity for a company like ours to work with a company like Avinity, a great bunch of guys who, culturally speaking, are on the same track as us. They believe in cloud-based interactive services and really believe in redefining television and that television should be good for people.
It’s a new era in the world of business. The nationalist walls have crumbled and markets are markets no matter what the geography. As a business you have to determine how best to compete in that space; increase you own effort, change your strategy or acquire somebody else’s effort and strategy. At the end of the day we figured, economically speaking, it was best to acquire a company that already is a ways down a path we’re blazing.
Beyond the economics, beyond the cultures, one thing stands out above the rest. Interactive television is not a U.S. trend; it’s not a regional fiefdom surrounded by a moat of indifference. It’s a worldwide phenomenon. That’s why we acquired Avinity and that’s why we announced the acquisition in Germany.