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Cisco buys into TV-on-demand

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Cisco has continued its thrust towards consumers with the acquisition of TV-on-demand firm Arroyo.

Privately-held Arroyo Video Solutions will set Cisco back $92m cash. The deal should go through by the end of Cisco's Q1 2007 on 31 October.

Cisco's plan is to integrate Arroyo's software into its own IP-NGN (Next Generation Network) architecture, which it's hoping to flog to content providers and advertisers.

Arroyo was founded 2002 and has 44 employees in Utah and its headquarters at Pleasanton, California. The management team joining Cisco include Novell founder Drew Major and 3Com CTO alumnus Paul Sherer.

Cisco SVP Michelangelo Volpi said: "The entertainment industry is going through a major shift while consumer desire for personalised on-demand service is on the rise.

"The industry is quickly evolving from pure video-on-demand to anything-on-demand with any content delivered to any end device. Cisco's next generation network strategy offers service providers the ability to make this vision a reality."

Cisco recently completed the $6.9bn buy-up of US number two set-top box manufacturer Scientific-Atlanta. It also bought consumer networking gear firm Linksys in 2003.

Chief development officer Charles Giancarlo said in January: "Consumer electronics companies have been able to compete on a standalone device but the dynamics of the market are changing. The internet and new networking requirements are enough of a disruptor for us to enter a new market." ®

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