Business Case for ActiveVideo's CloudTV

ActiveVideo has introduced CloudTV, a cloud-based approach to delivery of modern user interfaces and other applications. This cloud-based approach supports immediate delivery to all consumer devices and at much lower cost than set-top box-based (STB) solutions. The cloud-based approach eliminates the need to develop device-dependent software and application program interfaces (API) for devices, including several generations of STBs, media hubs, Blue-ray players, connected televisions, game consoles and personal media players. It also eliminates the need to undertake an expensive and time consuming program of replacing first-generation STBs.
ACG Research compared the total cost of ownership (TCO) of the immediate deployment of CloudTV to all consumer devices to a program of upgrading STBs to support a modern user interface. It found an 83 percent TCO savings over five years for CloudTV as compared to the STB replacement program. The analysis also tested the robustness of the TCO findings by performing a number of sensitivity studies. These studies found that the TCO savings of CloudTV are significant and extend well beyond probable op
erating conditions.
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