RGB Networks achieves record growth and profitability in 2010
January 13, 2011
RGB Networks, the leader in high-capacity three screen video delivery solutions, today announced its outstanding company and financial achievements for 2010, which position the company for continued success in 2011. RGB achieved record growth in 2010 with a 60 percent increase in shipments over 2009 and was profitable in the year. The company ended 2010 with record backlog and experienced positive cash flow from operations. Since inception, RGB has shipped nearly $200 million in products and services to over 200 cable, telco, satellite, over-the-top (OTT) and mobile operators in more than 30 countries.
“RGB Networks had a tremendous 2010 despite a weak global economy. This success is due in equal parts to sound business execution and having a unique solution that meets the needs of an expanding market at just the right time,” said Jef Graham, CEO of RGB Networks. “RGB is addressing the challenges of both traditional video service providers, as well as the telco and mobile ‘video newcomers’ worldwide. As these operators deploy services to TVs, PCs and mobile devices, the need – and demand – for our integrated three screen transcoding and advertising solutions grows, which makes us confident of continuing our success in 2011.”
TV Everywhere is fast becoming a reality as service providers are racing to deliver video to PCs and mobile devices with the same quality as they do to televisions. A 2010 report from the analyst firm TDG declares that “the era of multi-screen TV delivery is upon us” and that three screen services have quickly gone from the drawing board to being at the top of service providers’ to do lists. One of the keys to delivering a commercial-grade TV Everywhere service that offers both live and on-demand programming is the real-time transcoding of video content into thousands of individual video streams optimised for TVs, PCs and mobile devices. Accomplishing this in an easily scalable and cost-effective manner is precisely what RGB has focused on in the development of its comprehensive three screen solutions.
“The proliferation of TV Everywhere services is right around the corner as cable, telecom, over-the-top and mobile operators are striving to deploy services as quickly as they can, which makes three screens a tremendous opportunity for companies like RGB Networks with carrier-grade transcoding solutions,” said Yoav Schreiber, Senior Analyst, Digital Media Infrastructure, with the analyst firm Current Analysis. “With a track record of success with major cable operators worldwide, RGB is well positioned to expand its business with telecom and mobile carriers as they look for solutions to expand their video services to new devices.”
2010 Company Highlights
RipCode acquisition – In June RGB acquired RipCode, a provider of mobile IP video solutions. In conjunction with RGB’s Video Multiprocessing Gateway (VMGTM), the addition of RipCode’s mobile technology enabled RGB to speed development of its complete three screen solution for the delivery and monetisation of video services to TVs, PCs and mobile devices. Integration of RipCode was accomplished quickly and smoothly and enabled RGB to immediately participate in strategic trials of three screen services by several major service providers.
TransAct Packager launch – RGB introduced its newest product, the TransAct Packager, in November. Incorporating the advanced adaptive streaming technology acquired from RipCode, the TransAct Packager further expands RGB’s capabilities for video delivery to small screen devices.
‘Three screen’ wins – RGB continued its success with large and small cable operators worldwide and made significant inroads throughout the year with telcos, winning business with major carriers for three screen transcoding and packaging applications.
International expansion – RGB realised record international revenue in 2010 and hired international sales veteran Simone Sassoli in September to help expand on this success. There is tremendous potential in these markets as operators prepare for deployment of video services to desktop and mobile devices. Pyramid Research predicts that “much of the demand for [mobile video] will come from Europe and Asia/Pacific” with the number of worldwide users paying for mobile video and TV services expected to increase five-fold between 2008 and 2014, generating an estimated $16 billion revenue for mobile video services by 2014. Sassoli’s industry expertise, coupled with RGB’s experience gained from significant wins in the Americas, position the company to take full advantage of this opportunity.
Award recognition for VMG – Mirroring the positive feedback RGB has received from customers, the company’s award-winning Video Multiprocessing Gateway (VMG) received three additional honours in 2010. It won the ‘Best Digital Video Processing Technology’ category in the Cable & Satellite International Awards 2010, it was recognised as the ‘Technological Innovation of the Year’ by the UK chapter of the Society of Cable Telecommunications Engineers (SCTE) and it received a stellar Four Diamond ranking in the Broadband Gear Report’s annual Diamond Technology Reviews. The senior industry engineers, technology analysts and other experts in charge of these awards programs judged the VMG’s unique carrier-class chassis with integrated transcoding and ad insertion to be a superior solution for the delivery of three screen video services.