Microsoft has sold its IPTV business to Ericsson for an undisclosed amount. The sale of Mediaroom
, previously reported
to have been discussed in private, will in theory allow Microsoft to pour more of its resources into providing consumer-side TV services through the soon-to-be announced next Xbox games console.
Mediaroom provides the services behind the U-Verse
IPTV service from AT&T, among others, and powers 22 million set-top boxes in 11 million subscriber households in the United States, according to a company blog post
. A separate statement
from Ericsson claims the acquisition makes the company the market leader of IPTV and multi-screen services, with a 25-percent market share. The IPTV market is estimated to hit 76 million subscribers and $32 billion in revenues by the end of 2013, rising to 105 million subscribers and revenues of $45 billion by 2015.
Currently, Microsoft has over 76 million Xbox 360 consoles sold globally, and 46 million Xbox Live subscribers. A vast number of Live subscribers are able to use the various streaming video services that are currently offered on the Xbox, through service-specific applications. By offloading Mediaroom, Microsoft can now work on expanding the on-demand and live-TV offerings these apps offer, by working with other content producers to create new services.
If Microsoft is to add more video-based services to its platform, it may choose to reveal its future plans at the May 21st event, said to be the reveal-date for the next Xbox