Microsoft agrees to sell Mediaroom to Ericsson, will focus on Xbox for TV


Mediaroom is the No. 1 IPTV platform in the world in terms of market share.

Microsoft and Ericsson have announced a deal that will see the Windows creator sell its Mediaroom IPTV platform, allowing Microsoft to focus its television efforts into its Xbox team.

According to a press release issued by Ericsson, the deal will make it "the leading provider of IPTV and multi-screen solutions" with a market share of 25 percent. The deal is expected to close in the second half of this year.

The deal isn't unexpected, as Bloomberg reported late last month that the deal was pending the outcome of negotiations. That report indicated Ericsson was interested in acquiring Mediaroom so it could "cater to carriers that are competing with cable, satellite and Web-based providers."

A post on the official Microsoft blog written by Yusuf Mehdi, corporate vice president of marketing, strategy and business for Microsoft's Interactive Entertainment Business, said the deal will allow Microsoft "to commit 100 percent of its focus on consumer TV strategy with Xbox."

"With the sale of Mediaroom, Microsoft is dedicating all TV resources to Xbox in a continued mission to make it the premium entertainment service that delivers all the games and entertainment consumers want – whether on a console, phone, PC or tablet," he wrote. "And with 76 million Xbox 360 consoles around the world with 46 million Xbox LIVE members, it is a mission that gets us out of bed in the morning."

Microsoft has been rumored to be creating an Xbox TV set-top box that would provide gaming, entertainment and TV services. Last week, however, Paul Thurrott claimed the device wouldn't be launching this year as many had previously believed.

Mediaroom is the No. 1 IPTV platform in the world in terms of market share, powering 22 million set-top boxes in 11 million households. The platform is used in devices from AT&T U-verse TV, Vodafone, Deutsche Telecom and others.

Source: Microsoft, Ericsson | Image via Microsoft

Report a problem with article
Previous Story

More info points to May 21st next Xbox reveal

Next Story

Windows XP deadline leads to new Windows 8 price cut for businesses

9 Comments

Commenting is disabled on this article.

I wonder what this will do to the mediaroom client port for the Xbox 360 such as the ones used for the AT&T Uverse service.

betax said,
I wonder what this will do to the mediaroom client port for the Xbox 360 such as the ones used for the AT&T Uverse service.

If you're referring to the client that has to be installed by a UVerse tech via dvd install, that has been depricated for a while.

Other operators have written MVC2 apps using the new xbox app platform. The only one I"m aware of is Telus in Canada.

Telus made their own front end.

Should have used media room to power the xbox tv service.... would have been far better than a bunch of apps (assuming that is what the focus on xbox part means).

jagowar said,
Should have used media room to power the xbox tv service.... would have been far better than a bunch of apps (assuming that is what the focus on xbox part means).

Why? The service is much better because the apps embrace the paradigm of the service they're offering AND xbox live features. Media Room doesn't provide anything but a set top box UI for content already under ones control. Microsoft is better off being a content partner then a content carrier.

They could still allow apps to embrace their service.... but allow them to create a plugin to a base tv service (which is what media room could have been). That way the user experience could be seamless across everything.

I don't want each channel being its own app because it will be a pita to "change channels" if you have to do a 10 sec app load every time and then as we have seen with xbox now each app wants to do the UI just a little bit differently which will just lead to more confusion.

jagowar said,

I don't want each channel being its own app because it will be a pita to "change channels" if you have to do a 10 sec app load every time and then as we have seen with xbox now each app wants to do the UI just a little bit differently which will just lead to more confusion.

The apps aren't channels though, They are their own services in their own right offering their own video on demand - which doesn't translate at all to a tv guide type service..

spudtrooper said,
Media Room doesn't provide anything but a set top box UI for content already under ones control.

It's a little more than that.
It provides a complete TV management subsystem on the server that encodes/encrypts the content and manages guide and dvr.
The Mediaroom client (set top box) is abysmal, but that's becase the hardware is garbage.