Israel and UK conditional access specialist NDS Group, said that it has acquired CastUp, a company that supplies management systems for the delivery of video over the Internet. NDS paid $11.3 million and completion is expected in the first quarter of 2008.
The CastUp system enables acquisition, processing, distribution, serving and monetizing of rich media content over IP and, in particular, video and audio over the Internet. Customers include TV and media companies in Israel as well as the Israeli subsidiaries of large corporations like HP, Amdocs, MTV and Blockbuster.
CastUp is profitable and growing, and signals the first move by NDS to get into the lucrative web video market, which must be a core need for its existing customers as broadcasters are increasingly trying to shift their business model to the web, but want the same protection afforded by NDS conditional access systems and the introduction of broadband enabled set tops, so that internet content can be seen directly on a TV.
CastUp will continue to operate as a separate unit within NDS under the leadership of the current management team
Dr Abe Peled, NDS Chairman and CEO said: “We are very excited about the possibilities for new and comprehensive solutions for the delivery, management, and control of online media assets. We believe that NDS’ market-leading experience in securely delivering digital content, and our global presence will combine with CastUp’s proven technology to allow us to continue to enhance the businesses of our media and entertainment customers.”