Pace, Minerva Set-Top Box Integration

Pace has announced a partnership agreement with Minerva to integrate Minerva xTVFusion middleware technology into Pace HD set-top-boxes.

Pace indicates that this is an expansion to the options available to IPTV providers seeking middleware technology. The partnership will allow Pace to provide a “pre-integrated, end-to-end solution” to service providers. Both Pace and Minerva refer to the arrangement as an effective method of providing viewing options to IPTV subscribers that includes video-on-demand, restart TV, network DVR, catch-up TV and Internet video integration.

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Verizon Falls Short in STB Dust up with Cablevision

Last Friday, a U.S. International Trade Commission judge tossed claims that Verizon made against Cablevision Systems on set-top box patents. Verizon filed the complaint and suit against the cable MSO in early 2010.

Verizon claimed that three Cablevision set-top boxes (STBs) violated five patents held by the telco. Verizon released the following statement last Friday: “Our pursuit of this action reflects our long-established commitment to protect and enforce our intellectual property rights.”

Cablevision responded: “This is a significant victory for Cablevision, the judge rejected four of Verizon’s five claims in the case and the fifth had already been invalidated by a Virginia court. We are obviously pleased and will continue to defend ourselves vigorously as the process continues.”

Verizon is currently preparing a second case for review citing two additional patents that it believes Cablevision to be violating. If Verizon is victorious, the court will block Cablevision from importing three digital set-top models from Cisco, key hardware which subscribers use to record programs on the MSO’s new network DVR service.

In related news, ActiveVideo, an interactive TV vendor whose largest client is Cablevision, is waiting for a decision in a suit filed against Verizon for similar patent infringements in May 2010.

LIN and Dish Reach Agreement

After an eight-day blackout period in which 27 stations were dropped from Dish Network, the  subscribers in 17 DMAs learned on Sunday that the stations were coming back.

LIN Media and Dish Network announced on March 13 that they had come to terms and would be restoring the missing channels to the Dish Network line-up. In a statement from LIN Media, LIN president and CEO Vincent Sadusky said, ”We are pleased that our negotiations with Dish Network resulted in a fair resolution and a new retransmission consent agreement.”

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LIN Media Stations Go Dark on Dish Network

Advocates for retransmission consent reform are calling the latest blackout of local stations on Dish Network just one more instance in an increasingly long horror story. The loss of the 17 markets and 27 LIN Media stations directly affects 1.1 million Dish Network subscribers.

According to David Shull, senior vice president of programming for Dish Network, LIN is asking for a 175% rate increase in the first year. “LIN Media is simply being greedy, insisting on a rate increase so immense that Dish Network and its subscribers couldn’t possibly absorb it.”

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New Option for Dish Network?

Could Dish Network be working on a product that will allow it to stream programming over the Internet in the same way it delivers content via satellite? Dish Network CEO Charles Ergen told reporters last week that the company is in talks to expand its rights to do just that.

Without announcing a new development plan for an Internet product, Ergen did describe current discussions and a study that may result in a product aimed at viewers that must use the Web to access entertainment. Ergen acknowledged that some programmers run the risk of damaging their conventional distribution products.

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Could Netflix Lose Subscribers?

A poll conducted by The Diffusion Group indicates that if the Amazon Prime movie streaming product is comparable, roughly 32% of the Netflix subscriber base would choose  Amazon.

Amazon has indicated that it will make approximately 5,000 titles available for streaming and would include them with no additional fee in the Amazon Prime program. Amazon Prime requires a $79 annual fee.

Two thousand Internet households were included in the survey which consisted of two questions concerning Netflix and Amazon.  Of the Netflix subscribers who also have Amazon Prim memberships, 36.2% indicated they would drop Netflix while 32.6% indicated a willingness to use both services.

While most of the attraction to the Amazon product may be the perception that it is going to be less expensive, Netflix could be looking at a substantial loss in its subscriber count.

Cisco Purchases Inlet Technologies

Intent on adding strength to the Videoscape product, Cisco has announced plans to purchase Inlet Technologies of Raleigh, N.C., for $95 million. Inlet Technologies is a provider of adaptive-bit-rate video processing platforms.

The Inlet encoding capabilities are reported to adapt the quality of the video stream based on “real-time” network conditions relative to the receiving device in use. The Cisco Videoscape platform will deliver video content over IP-based networks to any qualified receiving device.

Cisco has indicated in promotional demonstrations and materials that Videoscape will dramatically change the television viewing experience so that conventional television content and online content can be integrated with videoconferencing and social networks and then extended to mobile devices.

The acquisition of Inlet Technologies adds strength and versatility to the Videoscape product, described as a more robust TV Everywhere experience.  The deal is expected to be completed during the first half of 2011.

For more, see Cisco’s video release.

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