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ActiveVideo Advances CloudTV CE Strategy

San Jose, Calif. – Cloud-based interactive solutions

ActiveVideo Networks

this week revealed its plans to offer a CloudTV platform for consumer
electronics devices.

ActiveVideo Networks said its system eliminates the
need to use costly powerful intelligence and processing systems on TVs, by
placing it in the network.

The thin ActiveVideo client can be downloaded easily
to the hard drives of existing network-aware CE devices, or built into the
chipsets of new devices.

ActiveVideo said its system is low-cost, versatile and
can be used with HDTVs, Blu-ray players, media servers, game consoles, mobile
devices and other CE gear.

Already in more than 5 million homes with cable and
IPTV providers, ActiveVideo enables rapid development of new content that can
differentiate product and service offerings, without increasing bill of
materials (BOM) costs.

ActiveVideo Networks said that through CloudTV, retailers
can set up a customer service/information/T-commerce channel that directly
reaches their customers through devices they sell.

This presents possibilities for recurring/additional
revenue streams and strengthening customer relationships, the company said.

“With ActiveVideo, CE manufacturers and
retailers can simply and cost-effectively increase the value of their products
by enabling differentiated content and interactivity and opening up the
possibility of new revenue streams,” said Jeff Miller, president and CEO. “By making their devices ActiveVideo-ready, CE
manufacturers and retailers can leverage our infrastructure, expertise and
relationships to become content providers virtually overnight.”

The ActiveVideo CloudTV platform leverages content
stored and processed in the network “cloud” to expand the reach of Web-based user

Content is delivered as a single, adaptable MPEG
stream to the CE device, which passes keyclicks from standard remote controls
through the CE device to the cloud. ActiveVideo easily integrates with any
device, enabling manufacturers to support Web-infused programming, navigation
and advertising that is delivered with the quality and immediacy viewers expect
from TV.

Other benefits of CloudTV include:

· The elimination of additional hardware for
Web-based and interactive content;

· Access to
exclusive content through ActiveVideo’s strong programming relationships;

·  Enhancements provided to CE device
functionality and extends optimal service life;

· The ability
to deliver customer services directly from retailers and manufacturers to
customers through the CE device; and

· Replacing a single CE sales transaction
with recurring content revenue.

In conjunction with the unveiling of its CE strategy,
the company said it has hired CE industry veteran Henry Choy as business development

Choy, who will be responsible for driving ActiveVideo’s
Web-Connected TV initiative, most recently had served as CE business
development VP for AnySource Media, an enabler of next-generation content on
traditional CE devices. AnySource Media was acquired by DivX, earlier this