Microsoft has confirmed today that it has successfully sold its Mediaroom IPTV service to Ericsson for an undisclosed amount. Both parties have released their own statements to confirm this transfer of services. With the Mediaroom IPTV service off its shoulders, the Redmond based tech giant will now be able to concentrate more on its client side TV services on the soon to be announced next gen Xbox gaming console. And with the acquisition of the Mediaroom IPTV service, Ericsson becomes one of the major IPTV service providers in the country.
Electronista writes, “Mediaroom provides the services behind the U-Verse IPTV service from AT&T, among others, and powers 22 million set-top boxes in 11 million subscriber households in the United States. A separate statement from Ericsson claims the acquisition makes the company the market leader of IPTV and multi-screen services, with a 25-percent market share.”
The IPTV market is expected to reach $32 billion in revenue from almost 76 million subscribers by the end of this year. And by the end of 2015, the revenue is expected to increase to up to $45 billion from over 105 million subscribers. Right now, the Redmond based tech giant has over 76 million Xbox gaming consoles sold all around the world with 46 million Xbox live subscribers. And all these Xbox Live subscribers use the various streaming services that the Live provides. Now, with no tension of the Mediaroom IPTV service anymore, the Redmond company will be able to concentrate more on these streaming services on the consumer end.
The company may work on live TV and on demand offerings with new content providers to expand the product’s features. And whether this is going to happen or not will be confirmed on the 21st of this month at the Microsoft event, when the company is expected to reveal the next gen Xbox gaming console.