Avail Media, TVN merge for linear, VOD combo

SES said it was shutting down due to weak adoption of IPTV by small and medium-sized telecom operators, as well as a difficult market outlook, but Potarazu said the market is picking back up as telcos need a way to compete with cable companies that are encroaching on their voice business more than ever.

"There is a resurgence [in IPTV] because the set-top box issues have been resolved and the middleware issues have been resolved," Potarazu said. "This is the right time for these two platforms to come together. As the content provider space is evolving, we also see the service provider space evolving, and we want to be a part of that."

With the help of the NRTC, Avail has since signed up 30 of SES's former customers, he added. Its customer base will be combined with TVN's, which spans the US, Canada, Caribbean and increasingly Mexico. Potarazu said the joint company plans to continue to expand its product outside of North America into fast-moving markets like India and Korea, as well as anywhere else strategic opportunities arise. Avail also recently inked a deal with Cisco to combine its IP-based video service with Cisco's IP next-generation network and IPTV platform, so that service providers just getting into the TV business can converge all their services over a single IP network.

Avail's remaining competitors include fellow IPTV wholesaler Falcon/IP Complete, digital media equipment provider EchoStar and, potentially, a host of over-the-top content providers, including Sezmi and Zillion TV, which both leverage the existing broadband network for content delivery. Although Zillion and Sezmi are looking towards partnerships with ISPs, Potarazu said they view them as potential partners rather than competitors since OTT content could potentially be blended with its mix of on-demand and broadcast TV.

 "I think we are all very confident in the category we are focusing on around management of digital content and offering it in more and more flexible forms to consumers," Sylvester added. "This is not a mature category; even though everyone has a television service and access to content and broadband, the rules are all changing. The way content is being offered – those new rules are still being written. We are very excited to play a role in how content is packaged and delivered and managed."