Posts Tagged ‘HBO’

Media Service Provider Vubiquity Acquired by Amdocs

broadcast technology market research, Broadcast Vendor M&A, Conference Sessions, Media Services M&A, OTT Video | Posted by Josh Stinehour
Feb 01 2018

Multi-billion dollar, multi-national Amdocs has signed a definitive agreement to acquire media service provider Vubiquity.

The $224 million cash deal has been approved by both the Boards of Directors of Vubiquity and Amdocs, and is expected to close during the second quarter of FY2018.

Amdocs (NASDAQ: DOX) is a provider customer service software to communications and media customers such as OSS (operational support systems) and BSS (business support systems) systems.  This acquisition is a significant expansion into the media industry for Amdocs, who did not have a booth at this past IBC and does not have a booth at this upcoming NAB Show (at the time of this writing).

Amdocs had already started to move deeper into the media technology sector with its September 2016 acquisition of Vindicia, a provider of subscription and payment solutions.  Vindicia’s payment solutions support several digital offers such as the BBC & iTV Britbox service and NBA League Pass. Amdocs purchased Vindicia for $90M.

This acquisition is a much further move into the media supply chain.  Vubiquity is a managed service provider connecting content owners and publishers with video distributors – both traditional PayTV operators and OTT publishers.  In its collateral Vubiquity cites relationships with over 650 premium content producers (film studios, television networks, etc …) and over 1,000 global video distributors (PayTV operators, OTT publishers, etc …).

Vubiquity had raised a total of $237.2 million over four rounds of funding between 2007 and 2012.  Current private equity owners include Columbia Capital and The Carlyle Group, whom invested $100 million of new funding as part of the Company’s purchase of SeaChange’s On Demand Group in 2012.

A series of M&A transactions built Vubiquity, beginning with the 2009 merger of Avail Media and TVN Entertainment – subsequently “Avail-TVN.”  Avail-TVN rebranded as Vubiquity in early 2013.

Later in 2013, Darcy Antonellis, then Warner Bros. CTO, joined Vubiquity as CEO.  Darcy’s notable resume also includes two speaking appearances at Devoncroft’s annual Media Technology Business Summit (see photo on left).  At the closing of the transaction Darcy will join Amdcos as head of the Amdocs Media Division.

More recent deals for the DETE (Digital-End-to-End) service from the Warner Bros. Technical Operations and Juice Worldwide, a digital supply chain solution company, further expanded Vubiquity’s portfolio.

The press release announcing the transaction states the “impact of the acquisition on Amdocs’ diluted non-GAAP earnings per share is expected to be neutral in fiscal year 2018, and accretive thereafter.” Since this is a cash transaction, it is difficult to derive any meaningful view on deal multiples from that statement.  However, Amdocs offered greater detail during its earnings call with analysts.

Tamar Rapaport-Dagim, CFO Amdocs, indicated an expectation of Vubiquity to contribute “approximately $100 million in the first 12 months after closing.” Ms. Rapaport-Dagim continued, “Vubiquity, as you can understand from the message that we think it will be a neutral impact on EPS in fiscal 2018 it’s coming with a low margin to start with. And we believe we can build it up along the time quite quickly, given both the top-line synergies and the cost structure synergies we see in front as opportunities.”

Using expected revenue contribution as a proxy for annual revenue suggests a deal multiple of 2.2x sales.

The stated level of revenue contribution contrasts with several earlier public data points on Vubiquity’s annual sales.  At the time of its rebrand, Management gave public guidance of annual revenue in excess of $250 million. Also, the inc5000 lists Vubiquity’s annual revenue in 2013 at $296.8 million.  Some caution is appropriate in concluding revenue has meaningfully decreased since Vubiquity’s business model may have passed thru content licensing revenue.  Such mechanisms or accounting treatment could result in materially different statements on revenue, depending on the context of the statement.

All communications by Amdocs cited a view of convergence between communications and media & entertainment.  “Investing in the growth engines of tomorrow is a core discipline of Amdocs and we see considerable opportunity resulting from the increased convergence of communications with media and entertainment” stated Eli Gelman, CEO Amdocs.

Mr. Gelman provided further commentary on the rationale during Amdocs earnings call with analysts.

“…we see increasing convergence between traditional wireless and Pay TV distributors, content owners and large OTT players.  By acquiring Vubiquity, we believe Amdocs will be uniquely positioned to address the requirements of distributors, content owners and web players as the lines between each become increasingly blurred.

Second, media and entertainment companies like Disney, HBO and Time Warner are reaching out directly to the end users with a direct content-to-consumer business model or what is called D2C direct-to-consumer. This trend requires new systems to support an improved customer experience that we believe Amdocs is well-positioned to provide.”



Related Content:

Video Message From Vubiquity and Amdocs Management



© Devoncroft Partners 2009-2018.  All Rights Reserved.


Don’t Miss Four Industry Leaders Discussing “Key Trends Driving Media Technology Investments” at CCW 2015

broadcast technology market research | Posted by Joe Zaller
Nov 09 2015

There is no doubt that the business models of media and broadcast companies are going through a period of dramatic change.  As a result, much of the technology required by broadcasters is also changing – as is who they purchase it from.

If you are interested in understanding what this means for both buyers and suppliers of media and broadcast technology, you won’t want to miss the ‘Key Trends Driving Media Technology Investments,’ panel session at the CCW show in New York this week.

This session is part of the CCW exhibition conference, and will be held this coming Wednesday, November 11th from 11:00 a.m. – 12:00 p.m., in room 1A06 in the Javits Convention Center.

Featuring an outstanding line-up of industry leaders, this session will discuss how the changing requirements of today’s media business are impacting technology investments today and in the future.

The panel will be moderated by Joe Zaller, founder of Devoncroft Partners, a leading market intelligence firm in the media technology sector.

Topics Discussion topics will include issues such as OTT delivery, content monetization, deployments of 4K/UHD, the transition to IP-based operations, virtualized technology deployments, outsourcing, and public/private cloud for content production, playout and storage.

The panel represents a cross-section of the media business, featuring a broadcast network, one of the largest TV station groups, a leading cable programmer, and one of the world’s largest outsourced service provider.


Speakers include: 



Todd DonovanTodd_Donovan_11194
Senior Vice President, Broadcast Operations & Engineering
ABC Television Network





Del Parks

Sinclair Broadcast Group





Diane Tryneski
EVP Media & Production Operations





Chris Walters

Encompass Digital Media



This session features a short overview of data industry trends, end-user budgets, and project deployments from Devoncroft’s 2015 Big Broadcast Survey, the largest and most comprehensive annual study of the media technology sector.  The panelists will then weigh-in on how the changing business environment is affecting technology strategy at their organizations.

If you haven’t already signed up, you may attend the session by registering for the FREE All-Industry Core Package here.  This will also include access to the Exhibition, 30+ CCW and SATCON Core Sessions, Post|Production Campus, and the InfoSession Theater.


As part of our partnerships with the CCW, we are pleased to offer the discount code EP15 to enable a $50 savings should you upgrade to one of the below paid programs. 


We hope to see you in New York at the Javits.



Related Content:

CCW Session Description — Key Trends Driving Media Technology Investments

2015 CCW Conference Registration

2015 CCW Free All-Industry Core Package Registration



Report: Apple Planning Online Video Launch Featuring 25 Broadcast Channels

Online Video, OTT Video | Posted by Joe Zaller
Mar 17 2015


Just a week after the announcement that Apple will be the exclusive launch partner for the HBO Now streaming service, a Wall Street Journal article reports the company is planning to introduce an online TV service featuring up to 25 broadcast channels, including content from ABC, CBS, and Fox.

The WSJ reports that media executives they interviewed believe Apple in planning to charge $30 to $40 per month for the service, which it aims to announce in June and launch in September.

This is not the first time there have been rumors about the launch of an Apple TV service. In 2012 Jefferies & Co. analyst James Kisner said in a report that his industry contacts suggest that “at least one major North American cable system operator is working to estimate how much additional capacity may be needed for a new Apple device on their broadband data network.”

Last year the WSJ reported: “Apple was in talks with Comcast to team up on a streaming TV service that would use an Apple set-top box and get special treatment on Comcast’s cable pipes to bypass congestion on the Web. Apple had discussions since at least mid-2012 with Time Warner Cable, but those talks came to a standstill when the company became a takeover target for rival operators. Time Warner Cable struck a deal—still awaiting regulatory approval—in February 2014 to sell itself to Comcast.”



Related Content:

WSJ Article: Apple Plans Web TV Service in Fall

HBO Reportedly Planning April 2015 Streaming Launch, Will Charge $15 per Month

Intel, Apple and Others Rethink How We Watch TV –

Analyst Says Apple TV Launch “Imminent,” Could Benefit Arris



© Devoncroft Partners 2009 – 2015. All Rights Reserved.



HBO Reportedly Planning April 2015 Streaming Launch, Will Charge $15 per Month

Online Video, OTT Video | Posted by Joe Zaller
Mar 05 2015

According to a report from Reuters, HBO is in discussions with at least five companies, including Apple, Google, and Tivo, to be launch partners for its previously announced HBO Now streaming service

Citing reports from The International Business Times and Bloomberg, Reuters notes that HBO plans to introduce the new streaming service in April 2015, and is expected to charge $15 per month.

According to Bloomberg, HBO CEO Richard Plepler has said he is looking to reach an estimated 10 million consumers who get Internet service but don’t subscribe to cable or satellite TV. Plepler has said he wants to work with HBO’s longtime cable distributors as well as new ones.





Related Content:

International Business Times: HBO In Talks With Apple To Be Launch Partner For Coming Web Service ‘HBO Now’

Bloomberg: Apple, Google Said to Be in Talks With HBO to Carry Web Channel



© Devoncroft Partners 2009 – 2015. All Rights Reserved.



Top Broadcasters and Content Owners to Debate Key Trends Driving Future Technology Strategy at CCW Conference

broadcast industry technology trends, broadcast industry trends, Conference Sessions, market research | Posted by Joe Zaller
Nov 11 2014

If you are interested in better understanding how the dynamic changes in the media industry may impact future technology purchasing and deployment strategies at top broadcasters and content owners, you won’t want to miss the panel discussion that I will be moderating at the CCW / SATCON conference.

The session is called “Key Trends Driving Media Technology Investments,” and it happening on Thursday November 13th at 11:30 a.m. in Room 1A14 of the Javits Convention Center in New York.

Discussion topics will include strategic drivers of broadcast technology spending, key customer investment areas, new technology deployment trends, and the most significant industry trends impacting end-user purchasing decisions.

An outstanding panel of four senior M&E technology executives will offer informed perspectives on the most significant trends in the industry, and how their technology purchase decisions are being driven by these shifts in the market.

Confirmed participants include:

  • Richard Friedel, Executive Vice President & General Manager, FOX Networks Engineering & Operations


  • Fred Mattocks, GM, English Services, Media Operations & Technology; Chair, Technology Strategy Board, CBC


  • Delbert Parks III, SVP and Chief Technology Officer, Sinclair Broadcast Group


  • Diane Tryneski, Executive Vice President, Media & Production Operations, HBO Enterprises


In addition, the audience will benefit from a summary of key data derived from a variety of broadcast market intelligence projects including Devoncroft’s 2014 Big Broadcast Survey (BBS), the industry’s definitive demand-side market report.

Please note that this event is part of the paid conference at CCW. You can register for the CCW Conference here.

This should be a great session. I hope to see you there.



Related Content:

CCW Session Description — Key Trends Driving Media Technology Investments

2014 CCW Conference Registration



© Devoncroft Partners 2009 – 2014. All Rights Reserved.



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