ActiveVideo Networks Announces Strategy to Bring CloudTV to Consumer Electronics Devices

Thin software client for HDTVs, Blu-ray players, media servers and other components enables manufacturers to offer low-cost content, interactive TV and enhanced functionality.

SAN JOSE, CA (December 16, 2009) – ActiveVideo Networks, the global leader in cloud-based interactive television solutions, announced a comprehensive strategy this week to deliver its innovative CloudTV platform to consumer electronics devices.

Previous attempts to bring interactive TV functionality and exclusive content to CE devices have required significant investments by television and component manufacturers because of a need to integrate powerful intelligence and processing on the devices themselves. ActiveVideo offers a compelling new alternative: a low-cost but highly versatile system that leverages the power of cloud computing to universally deliver highly engaging new content to HDTVs, Blu-ray players, media servers, game consoles, mobile devices and other CE gear.

Already in more than 5 million homes with cable and IPTV providers, ActiveVideo enables rapid development of new content that can differentiate product and service offerings, without increasing bill of materials (BOM) costs. In conjunction with the unveiling of its CE strategy, the company has hired highly-respected CE industry veteran Henry Choy as vice president of business development (see separate release).

“Get ready: The CloudTV revolution is now coming to CE,” said Jeff Miller, president and CEO of ActiveVideo Networks. “With ActiveVideo, CE manufacturers and retailers can simply and cost-effectively increase the value of their products by enabling differentiated content and interactivity and opening up the possibility of new revenue streams. By making their devices ActiveVideo-ready, CE manufacturers and retailers can leverage our infrastructure, expertise and relationships to become content providers virtually overnight.”

The ActiveVideo CloudTV platform leverages content stored and processed in the network “cloud” to significantly expand the reach and availability of rich, Web-based user experiences that are redefining interactive television (iTV 2.0). CCCContent is delivered as a single, adaptable MPEG stream to the CE device, which passes keyclicks from standard remote controls through the CE device to the cloud. ActiveVideo easily integrates with any device, enabling manufacturers to support Web-infused programming, navigation and advertising that is delivered with the quality and immediacy viewers expect from TV.

Because the power of CloudTV is in the network and not in the device itself, the impact of the ActiveVideo client is minimal. The thin ActiveVideo client can be downloaded easily to the hard drives of existing network-aware CE devices, or built into the chipsets of new devices. At the Intel Developer Forum in September, ActiveVideo and partner Videon Central, Inc., successfully demonstrated the integration of the ActiveVideo client with Videon Central’s Blu-ray Disc middleware.

In addition to reduced BOM and increased product differentiation and functionality, CloudTV delivers a variety of other benefits for the CE industry, including the ability to:

· Eliminate the need for consumers to buy and integrate proprietary solutions for Web-based and interactive content (no additional hardware is required);

· Leverage ActiveVideo’s strong programming relationships and Web standards-based authoring, tools and technologies to create and distribute exclusive content;

· Deliver upgrades and enhancements that increase CE device functionality and extend optimal service life;

· Market and sell new devices or provide manufacturer or retailer customer service directly to customers through the CE device, enhancing brand loyalty; and

· Replace a single CE sales transaction with recurring content revenue.

CloudTV enables CE manufacturers and retailers to provide consumers with a transformed television experience that combines the best features of television and the Web, including a compelling blend of choice, quality, immediacy and remote control navigation. In addition, CloudTV supports social networking capabilities that allow viewers to link online communities with television viewing, and to share recommendations on TV shows, movies or other media.

CloudTV’s versatility offers extraordinary value for all stakeholders in the media ecosystem. Leveraging the power of CloudTV: Traditional video programmers can increase reach and viewer loyalty by allowing audiences to consume and share content on their own schedules; Web video programmers can reach the mass audience of television while maintaining the interactivity and functionality their viewers have come to expect; CE retailers and advertisers can leverage relationships with manufacturers to deliver their own branded customer service and T-commerce solutions through the very devices they sell to create new revenue streams; and consumers can enjoy a television experience that truly fits their digital lifestyles.

ActiveVideo Networks will brief select media and analysts on its CloudTV strategy at CES 2010 by appointment only. To schedule, please contact one of the ActiveVideo PR contacts listed below.

About ActiveVideo Networks
ActiveVideo Networks is the world leader in cloud-based interactive services that are redefining television (iTV 2.0). The company’s network-centric approach simply and inexpensively enables expanded programming, navigation and advertising possibilities, allowing viewers to define and share their TV experiences. ActiveVideo combines Web-based media and targeted, clickable advertisements with the high-quality video, immediate responsiveness and remote control navigation of television for uniform interactivity across all digital and IPTV set-tops, CI+ enabled televisions, and broadband-connected CE devices. ActiveVideo Networks is based in the heart of Silicon Valley, with offices in Los Angeles, Baltimore and Hilversum, the Netherlands. For more information, visit www.activevideo.com.

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