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NewsPoster Apr 8, 2013 11:14 AM
Microsoft confirms sale of Mediaroom IPTV to Ericsson
Microsoft has sold its IPTV business to Ericsson for an undisclosed amount. The sale of <a href="" rel='nofollow'>Mediaroom</a>, <a href=" eks/" rel='nofollow'>previously reported</a> 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. <br />
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Mediaroom provides the services behind the <a href="" rel='nofollow' target="_self" title="">U-Verse</a> 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 <a href="" rel='nofollow' target="_self" title="">post</a>. A separate <a href="" rel='nofollow' target="_self" title="">statement</a> 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. <br />
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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. <br />
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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 <a href=" analyst/" rel='nofollow' target="_self" title="">next Xbox</a>.
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