Is anyone paying for SPVSS developed products, or is all the revenue coming in from services integration work? Will it book any revenue in the future? Not sure what kind of prospects P sees here, is it just maintaining old school STB that have been fielded for decades?
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Plus X1 which generate positive revenue
What makes net positive revenue at decent margins:
IRD Receivers
DCM/vDCM
SmartCard
DCAS/SCAS
Believe it or not, Cisco would have kept one or more of the above (especially vDCM since it’s a software product with a solid licensing model). But the positive revenue pipeline of these products was the lipstick needed on the NewCo pig. And even with them, it was difficult getting a buyer.
What bleeds money:
Everything else from SPVSS
Cloud DVR, Everything IV, COS, VG DRM, anything control plane related, etc
Hybrid ass
Any clues as to what the new products will be?
"Why have all those expensive people in the US and Europe?" The majority of the intellectual know how is still based in Israel and the European markets still have a lot of MSO's using the older NDS CA. There's customer loyalty and familiarity with the European MSO's and since Cisco was LR'ing support teams around the world to keep the customer happy retain the folks they know. Then Premera has an in to get their new products looked at. If you change all the players Premera will just be the new kid on the block with no reputation
Totally agree, so you expect the company to be based in those markets with comparable cost? Why have all those expensive people in the US and Europe? My suspicion is that the next owner is already preordained . Someone perhaps Cisco couldn’t sell to directly...
"is it just maintaining old school STB that have been fielded for decades?" P is basically using the revenue from these services to fund development. What people seem to fail to see is not all countries are as advanced as the Americas and Europe so there is plaenty of new markets in countries where internet is not plenty and Satellite is the best way to deliver tv. Just because in America people prefer to buy 10$ android boxes to watch tv doesn;t mean there aren't markets out there still looking for older Settop technologies
Yay - bring back locatetv !
Oh we are going to invest in metadata and win conquer the payTV market!
SPVSS books some $700M of product revenue a year, the bulk of which comes from the old NDS satellite pay TV security product (VideoGuard Conditional Access).