Swedish communication and technology company Ericsson ERIC announced the extension of its playout services contract with the U.K.’s frontline television network, ITV, up to 2024. Despite this positive development, shares of the company remained relatively flat.
Inside the Headlines
As per the renewed contract, Ericsson will continue to offer playout services for a host of ITV channels including ITV, ITV2, ITV3, ITV4, ITV HD and CITV and also their regional versions. This apart, two brand new channels – ITV Encore and ITVBe – will also enjoy the Swedish communication giant’s comprehensive playout offerings.
Ericsson supervised the design and development of a highly scalable simulcast platform, so as to help ITV improve its existing services as well as come up with new ones. Moreover, Ericsson’s highly adaptive platform will allow ITV to seamlessly launch current services on newer platforms.
ITV, one of the oldest commercial TV networks in the U.K., excels in delivering successful programming across multiple platforms like mobile devices, video on demand and third-party platforms by minimizing risks, costs and complexities. The company believes that Ericsson’s influence on the evolution of television over the last 20 years remains practically unmatched; and this, in turn, will support improvement of its channels as well as content.
To Conclude
Over time, Ericsson has pioneered multiple trends in the history of television viewership, such as introduction of digital TV, Internet protocol TV and high-definition options to satiate customers. The company is widely popular among content owners, broadcasters, and TV service providers across cable, satellite and telecom industries, who are working relentlessly to improve the experience of viewers.
Focused on strengthening its foothold in the broadcasting and media industry, Ericsson has extended its technology to broadcasters for merging video and mobility. In addition, the company has become a market leader in the Operational Support Systems and Business Support Systems segments, post the acquisition of Telcordia in the first half of 2014. In the second quarter of 2015, the business experienced year-over-year growth, thereby contributing to both Professional Services’ and Support Solutions’ revenues.
Also, Ericsson penned a multi-year deal with BT Sport for providing assistance to the latter in designing, building and operating a new range of services in the U.K. Moreover, the company signed a 7-year playout services contract with one of the leading global public service broadcasters – BBC. Presently, the company concentrates on improving both its core enterprise and the flourishing adjacent business to drive maximum growth.
Ericsson currently holds a Zacks Rank #2 (Buy). Other stocks worth considering in the industry include Harris Corp. HRS, Juniper Networks, Inc. JNPR and Clearfield, Inc. CLFD. While Harris and Juniper sport a Zacks Rank #1 (Strong Buy), Clearfield carries the same Zacks Rank as Ericsson.
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