Auroras, Broadstream Merge to Better Help Providers Launch IPTV

Hoping to fully equip rural and low-tier telcos and cablecos provide customers IPTV and related media services, Auroras Entertainment LLC and Broadstream Communications Inc. agreed Thursday to merge following shareholder approval. The name of the combined entity will be Avail Media Inc.

The companies said that Aurora’s MPEG-4 IPTV service package, which has already been deployed by telcos and FTTH customers, combined with Broadstream’s middleware product and content partnerships will provide a broader and more robust offering than either could deliver separately.

The merger is part of a fast moving trend whereby companies are jockeying to provide telcos, and in some cases cabelcos, packages that will enable them to rollout IPTV service and features without the capital expenditures associated with buying headends, and minus the time needed to build and integrated IPTV ecosystems themselves. (see story). Some providers also provide the actual video content, negotiating for which can be challenging to telcos.

The merger is expected to close early next year, with combined commercial services launching at that time, but an estimated value for the deal was not disclosed. The service suite will include IP-based VoD, PVR, HDTV and additional local edge capabilities.

Auroroa’s CEO Diane Smith admitted her company had been solely focused on its IPTV services while Broadstream had begun expanding its focus to the cable and advanced media marketplace. “We recognized that a merger would allow the combined company to get to market faster and offer a broader array of services to our customers,” she said.

Ramu Potarazu, formerly COO of Intelsat and now CEO of Broadstream, will be CEO of Avail. Smith will be president of the new company. Rounding out the executive team will be Jon Romm, executive vice president of sales, marketing and business development; Steve Bukowski, executive vice president, integration and operations; Mike Kazmier, executive vice president, technology; and Ben Goux, CFO. Broadstream and Auroras will be wholly owned entities of Avail Media.

"The advanced media services and IPTV marketplace is challenging, both technically and operationally,” Potarazu said in prepared comments. “The companies saw an opportunity to better meet these challenges and deliver a larger breadth of services to our customers.” He added that the firms are excited about working with programmers and their customers to increase their revenue streams by introducing new network edge and advanced media services.

Broadstream, headquartered in Bellevue, Wash., was founded more than three years ago; its shareholders include Pioneer Ventures and Benaroya Capital. Auroras, headquartered in Kalispell, Mont., also began operations more than three years ago. Following the merger, the company will relocate its headquarters to Washington, D.C., and will maintain technology development and sales offices in Bellevue and Kalispell.

Auroras Entertainment LLC www.auroras.tv  

Broadsteram Communications Inc. www.broadstream.com

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