A stealth VOD boom augurs well for two equipment providers
by Dave Sterman, equity research columnist
tel.multexinvestor.com
The VOD "story"
The delivery of content directly to consumers was supposed to revolutionize the telecom industry. Nearly a decade ago, Ivan Seidenberg, CEO of Bell Atlantic (predecessor to Verizon (VZ)), revealed splashy plans to build a video empire upon his telecom platform. And the crown jewel: VOD, where customers could watch any movie at any time.
Technology and money were in short supply at the time, forcing Seidenberg to abandon his dreams.
Companies mentioned in this article
Concurrent Computer (CCUR)
Seachange International (SEAC)
But his vision is now, belatedly, being realized by the arch-enemy: cable companies. They've begun to aggressively roll out service, and found a great deal of interest from consumers.
You'd never know it by looking at their stock prices, but Concurrent Computer and Seachange International are shaping up to be the direct beneficiaries of the coming VOD boom.
In the past year, Time Warner Cable, Cox, Comcast, and Charter have all started modest rollouts of VOD service. In selected markets, they've bought a few VOD servers, quietly spread word of its availability, and then watched to gauge consumer reaction. |
